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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.
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. You will probably find, from your initial analysis, that your cost-to-serve follows the 80/20 rule. Which process steps cost the most, and the least, to complete?
On this blog and the one published by our sister company Logistics Bureau, we often receive questions relating to metrics suitable for monitoring procurement performance. In procurement, cost analysis is not just about the price of your company’s purchases. 7 Procurement KPIs You Should be Using.
As you’ll know, if you follow our blog regularly, Logistics Bureau does a great deal of work related to supply chain strategy development and alignment. Another thing we talk about quite often on our blog is how companies often misjudge the needs and preferences of their customers. Step 1: What do Your Customers Want?
To assist with the short-term solution, the answer is an extensive data-gathering exercise. You can see critical stats such as outstanding customer accounts as well as an age analysis of those accounts and interpret the data in a meaningful way. Use data to improve operations.
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.
Transportation spending is a perennial target of budget-cutting exercises, and a large, multi-faceted cost center for many companies; some may spend three to six percent of their materials costs on transportation. We recommend you download that white paper by visiting that blog post here.
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.
In an attempt to help you keep your supply chain organisation from analysis paralysis, metric manipulation, or measurement misnomers, I decided to use this post to share nine important guidelines, or golden rules, for benchmarking your business and monitoring performance using meaningful supply chain KPIs.
View all Infosys blogs. The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. They expand into an analysis of revenue-accruing & cost-optimizing functions, and result in the identification of capabilities that the organization aspires to develop or enhance.
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. A few months ago, we published a full blog post on the consequences of a misaligned distribution network.
this exercise helps retain mobility in the damaged joints". The top three technology priorities of industrial manufacturing CEOs are mobility (73%), cybersecurity (72%) and data mining and analysis (70%). But, what does mobility exactly mean? When you look in the dictionary, you get the following: mo·bil·i·ty. mōˈbilədē/.
View all Infosys blogs. The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. We conducted a thorough analysis of these concerns & compared results in different geographies. This exercise was done before the monthly planning cycle start.
Efficient inventory management To prevent running out of stock or having too much on hand, you must exercise caution when handling the inventory of your company. Monitoring and analysis Keep a close eye on your logistics operation’s key performance indicators (KPIs). This is particularly crucial in densely populated places.
Across our many blog posts, videos, webinars, eBooks, and other shared content, you’ll find a wealth of information about various aspects of outsourcing in the supply chain. However, I can’t recall writing a general guide about exploiting outsourcing opportunities to improve your supply chain.
A warehouse benchmarking exercise is an excellent way to start the quest for improvement opportunities. LMS applications can help with real-time workforce tracking, performance analysis, and scheduling. However, such improvements first require a clear understanding of your warehouse operation’s strengths and weaknesses.
In addition to making data analysis more difficult, using parallel platforms—which are not approved by the company’s IT department—leaves data entirely vulnerable to cybercriminals. As a result, you must exercise extreme caution when selecting each partner, making sure they have sufficient security procedures and resources in place.
As youll know, if you follow our blog regularly, Logistics Bureau does a great deal of work related to supply chain strategy development and alignment. Another thing we talk about quite often on our blog is how companies often misjudge the needs and preferences of their customers. Step 1: What do Your Customers Want?
Pre-Audit : The aim of this audit is to ensure that all the ingredients (as discussed in my previous blog) required for conducting a successful shutdown are available. Audit each of the assets that was a part of the maintenance exercise and ensure that it is in complete working condition viz. Let us dive deep now.
The Kmart Australia story would make a good blog topic to illustrate the benefits of aligning supply chain and business strategies , but in this post I want to share the story of the original Kmart chain, which today shares nothing in common with Kmart Australia save for the brand name and logo. The Failing Kmart Business Strategy.
While the folks in the meeting discussed emphatically on how requirements are changed as late as User Acceptance test, I actually got tele-transported back to my stint in a process optimization exercise at one of the largest utility companies.
In an attempt to help you keep your supply chain organisation from analysis paralysis, metric manipulation, or measurement misnomers, I decided to use this post to share nine important guidelines, or golden rules, for benchmarking your business and monitoring performance using meaningful supply chain KPIs.
However, in reality most strategic planning exercises neither embed foresight, nor create responsive networks. It also includes ‘what-if’ sensitivity analysis and simulation techniques to sense the effects of delta changes in demand, supply, or network and helps respond better to changes.
Through this 2-part blog I will attempt to highlight a few challenges pertaining to this process and possible solutions to the same. During one of her routine quarterly stock analysisexercise she observed something unusual. When she tabled her analysis during the discussions the warehouse managers promptly responded.
Turning on your business know-how is important too, because you need careful analysis and critical thinking to make the best of existing opportunities. In terms of skills, it’s a good idea to refresh your math skills because you’ll need to make use of them on a daily basis. Get Started!
If you follow our blog, you’ll know that we often post articles about logistics outsourcing. The best way to do that is by completing a thorough analysis of current actual costs versus the projected costs associated with commencing—or ending—a 3PL partnership. Sufficient due diligence is exercised in partner selection.
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