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Today’s article is from Ahmad Jiwani at Coupa and looks at supply chain design. This is achieved through analysis, scenario planning, and simulation with end-to-end models, fueled by AI and powerful algorithmic engines. To read the full article, click HERE. How often do you revisit and update your supply chain designs?
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? And that is the sole purpose of cost-to-serve analysis. If you were going to say, “What is a cost-to-serve analysis?” Only a complete cost-to-serve analysis will expose these underlying issues unless they happen to be discovered incidentally.
Moreover, the attitude of commanders and leaders, logisticians and staff planners to comprehensively and critically assess the Defence organisation – a ‘blue force analysis’ – also influences the logistics system to function as intended. I described the interplay between logistics and readiness.
By David Beaumont This article, and the series which follows, are an updated version of a presentation given at the Australian National University titled ‘ Logistics preparedness and mobilising the national support base: the effectiveness of ADF strategic logistics prior to Operation Warden 1999 ‘. P art One , Two and Three can be found here.
The tips in this article will help you know how to identify the customers, products, and processes that might be inflating your cost to serve (CTS) unnecessarily. Detailed cost-to-serve analysis can be complex and time-consuming, so it’s a good idea to break the task down by priority and target specific areas on which to concentrate.
So those faster moving products using this principle we can categorise as A, and so on, through B and to C the slower the sales rate is, we call this ABC analysis. All of these symptoms potentially are a sign that a slotting exercise is overdue. This article is the first in a planned series on slotting. Product Slotting.
By David Beaumont This article, and the series which follows, are an updated version of a presentation given at the Australian National University titled ‘ Logistics preparedness and mobilising the national support base: the effectiveness of ADF strategic logistics prior to Operation Warden 1999 ‘.
As a result, and as we’ve mentioned in several previously published articles, we’ve discovered that many companies lack a defined and documented supply chain strategy. Step 2: Gap Analysis – Customer Requirements and Supply Chain Trends. After all, even extensive articles dedicated to the topic can barely scratch the surface.
Too much leads to resources being monopolised on gathering tons of data and a subsequent risk of “paralysis by analysis” Cost to Serve (CTS) is an approach that helps you avoid both extremes. Besides optimising the present or fixing the past, CTS reporting and analysis opens the door to what-if scenarios and projections.
For example, you might use simple observation to identify visible defects at goods-in, or you could make your analysis a bit deeper by testing a percentage of items received from the supplier. In procurement, cost analysis is not just about the price of your company’s purchases. Cost per Purchase Order and Cost per Invoice.
Logistics In War has been exploring preparedness and logistics in a series of articles over the last three months. I encourage you to read the article to see the important trend driving the sustainment of militaries at play. Fourthly, the logistics organisation must be exercised and be the subject of experiments which qualify risks.
The ADF’s preparedness prior to this operation has been scrutinised through reports and analysis, at levels range from tactical to committees of Government. This article will describe the impact of strategic resourcing and logistics problems on operations. It’s always a good time to reflect upon messages from the past. Conclusion.
If you browse through the Logistics Bureau blog, you’ll find at least two or three articles—and about the same number of videos—that cover warehouse product slotting. It also stands to reason that when you undertake a slotting exercise, you should think about it from the perspective of these activities. SKU and Slot Dimensions.
Moreover, the attitude of commanders and leaders, logisticians and staff planners to comprehensively and critically assess the Defence organisation – a ‘blue force analysis’ – also influences the logistics system to function as intended. I described the interplay between logistics and readiness.
In this article, I will redress the balance by exploring outsourcing from a more holistic perspective, focusing on ways to consider outsourcing partnerships for improvement throughout the supply chain. However, I can’t recall writing a general guide about exploiting outsourcing opportunities to improve your supply chain.
In this article, we’ll explain why that should be and how your company can avoid S&OP problems by investing correctly in the people and their interrelationships , without which it’s simply impossible to tie the moving parts of S&OP together. At the beginning of this article, we looked at who’s who in the S&OP process.
We hope the tips and ideas in this article will help you make inroads into warehouse energy and labour cost reduction. However, in this article, we’ll focus exclusively on the cost factor, drawing your attention to some questions you might ask yourself (and your team) about your facility’s energy usage.
Where to Start with a Product Slotting Analysis To start with, find out which products are picked the most and place them as close as possible to what we call the centre of gravity of the warehouse, where dispatch is situated. To do a proper analysis though, we need to go a bit more in-depth.
Here is an overview of the most valuable benefits: More informed freight spending: Because freight benchmarking involves the analysis of carriers and the rates paid by companies using them, it gives you an evolving picture of clarity about your freight spending. What Are Your Freight Benchmarking Options?
However shocked you may be by the results of a cost-to-serve analysis, avoid the knee-jerk reaction and instead, use your new-found knowledge to turn unprofitable customers and products into profitable ones.
Rather than using intuition to inform decisions, people often retreat behind analysis to avoid choosing between difficult options. Even if analysis is used to inform judgements, decisions at the highest level will tend to be intuitive and influenced by a range of factors. This article was originally posted in November 2017. [1]
Exercises undertaken to simulate high-intensity war such as US Pacific Command’s Exercise Pacific Sentry 17-03 highlighted significant force posture challenges that might constrain air (and other) operations against a peer adversary. The best both can do is be adaptable. [i] 2, Routledge, USA, 2006.
Strange as it may seem, many business leaders don’t have the answers to these questions , because they’ve never conducted an exercise to understand the costs involved with supplying their customers. As supply chain mistakes go, neglecting network design analysis is possibly one of the costliest.
Step 2: Gap Analysis Customer Requirements and Supply Chain Trends Now you know what your customers genuinely expect from your outbound and reverse supply chain, so its time to undertake a gap analysis. Ideally, though, evaluating your position against competitors should not solely be a KPI benchmarking exercise.
to the complex exercise of pricing. The analysis ripples through the many stages of a supply chain, each of which can have a major impact on the final price of a product. Comment on this article. That, at least, is how Geoff Webb, vice president of product marketing with PROS , sees the application of A.I.
We conducted a thorough analysis of these concerns & compared results in different geographies. Analysis showed that around 70-80% of issues faced in support could be classified or could be attributed to incorrect Master Data Maintenance & triggered a thought process of "Importance of Proactive Master Data Maintenance".
The Path to Cost Reduction: Following a SCOR supply chain benchmarking exercise, AGCO decided to approach its cost reduction and efficiency goals by blending new technology—in the form of a globally integrated transport management system (TMS)—with a commitment to form a partnership with a suitably capable 3PL provider. Procurement analysis.
This article does not profess to address all components of creating ‘Intelligent Logistics’. However, in reality most strategic planning exercises neither embed foresight, nor create responsive networks. Last month’s feature article talked about ‘Information Factory’. The periodicity may range from six months to five years.
If your supply chain network design has not been under the microscope, and you care about business success, it’s probably time to consider the benefits of a design review and optimisation exercise. The use of a methodology known as “cost to serve analysis” often reveals shocking realities about supply chain costs. . .
As in other domains, data analysis and business intelligence requirements and opportunities are now on the rise. International business practices. Knowledge of laws and regulations. Mechanical skills. Watch out for new positions and skills arriving in supply chain as well.
This article was first published in the July / August 2018 issue of MHD Supply Chain Solutions. Network analysis will be crucial for finding the best configuration of return centres, given factors like retail locations and transport facilities with backhaul possibilities. Tempting, but wrong. Almost everything can change.
While a number of factors are doubtless contributing to the Kmart demise, only a minor amount of analysis is required to identify supply chain misalignment as being one of the primary issues, which the company has never managed to correct. The Failing Kmart Business Strategy. The first Kmart store opened way back in 1962.
As part of the ‘Centre of Gravity’ series of papers, the purpose of its analysis of the idea of ‘sovereign defence industry capabilities’ is to provide strategic policy recommendations, of which there are three. [1] This article was originally posted in 2017. 1] These paraphrased points are summarised at Fruhling, S.,
In this article, we look at why you might want to collaborate in your logistics, where opportunities lie, what makes collaboration work, and conversely, what makes it fail. Any company that thinks collaboration can work as a “throw it over the wall” exercise is likely to be disappointed. No properly supportive management.
In this article, outsourcing will refer specifically to transport and warehousing functions. To assist your analysis, examples of industries are plotted on the matrix. It must be a joint exercise. The new supply chain remedy born during the 1970s and 80s and refined over the years as globalization has materialized.
In this article, we look at why you might want to collaborate in your logistics, where opportunities lie, what makes collaboration work, and conversely, what makes it fail. Any company that thinks collaboration can work as a “throw it over the wall” exercise is likely to be disappointed. No properly supportive management.
The following text is of a presentation given at a 2019 Wiliams Foundation conference, ‘Sustaining self-reliance’ As the original article cannot be found on other sites, it is provided here with some slight adjustments. It examined the threat to US interests from Russia and China as they applied to its capacity to project power.
If you follow our blog, you’ll know that we often post articles about logistics outsourcing. In this article, we will revisit the logistics outsourcing topic by looking at the various reasons companies fall back on to justify a decision to outsource logistics or keep it in-house.
This article follows-up last week’s post on logistics in deterrence. . This article examines military power from the position of a theorist who saw geography and logistics as central to his vision of national power. This article was originally published at LIW in early 2018. By David Beaumont. 2] Louth, J., 3] Boulding, K.,
Overused and misunderstood in blog posts and informative articles, “big data” describes the use of data to improve your operation, which includes shipping, warehousing, and supply chain processes. However, you must exercise caution to make sure you do not damage your vendor-shipper relationship. Metrics and KPIs.
And analysis shows the odds of a significant dip are unlikely. And as carriers have options… they are exercising them in search of margins. Read the article here. Now well above March’s panic buying numbers, freight volume is sitting at a 29% increase year over year. Get the details here. It’s more bad news for shippers.
This article is part two of a series of posts examining logistics and strategic competition. This article examines military power from the position of a theorist who saw geography and logistics as central to his vision of national power. By David Beaumont. Strategists and logisticians alike need to be innovative at this time.
In this article, you’ll: Learn the top safety guidelines for warehouses. We’ll talk more about specific risks later in the article, but briefly, warehouse workers commonly face hazards associated with: Forklifts and other material handling equipment. This is your ultimate guide to warehouse safety. Let’s dive in! Table of Contents.
While this is nothing to cheer about, industrial output combined with the other items noted in this article will continue to increase the demand for trucks during the normal lull. If you’re looking for some deeper analysis on rate increases for 2021, we recommend both the FreightWaves 2021 Outlook and the DAT Market Update.
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