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This is achieved through analysis, scenario planning, and simulation with end-to-end models, fueled by AI and powerful algorithmic engines. The post Editor’s Choice: Why Supply Chain Design Is Not a “One-and-Done” Exercise appeared first on Logistics Viewpoints. To read the full article, click HERE.
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.
A new white paper from a supply chain consultancy suggests retailers are too fragmented in their approach to determining their Costs-To-Serve (CTS) and should instead adopt CTS analysis as a core, business-critical initiative for informing future decisions and direction. “In CLICK HERE to download the full white paper.
Capability gaps were so obvious in post-operational analysis that a strong narrative about mis-investment in Defence emerged in the wake of Operation Warden and the corresponding INTERFET mission. Exercises only began after logistics forces had moved in advance to prepare arrangements before the combat forces arrived for the main game.
Manufacturers, for instance, can vary production yields, quality, uptime, and material supplier reliability (fill rates and lead times) for a comprehensive analysis that allows them to identify weak links and potential failure points to identify proactive measures to mitigate risks and the agility to seize new opportunities.
Capability gaps were so obvious in post-operational analysis, a strong narrative about mis-investment in Defence emerged in the wake of Operation Warden and the INTERFET mission it corresponded to. Exercises only began after logistics forces had moved in advance to prepare arrangements before the combat forces arrived for the main game.
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. It is impossible to understand logistics constraints and limitations if they lie un-examined.
Yes, there are also cute company dogs present, warehouse tours, and the occasional lighthearted team-building exercise, but overall, employees keep their eyes on the prize of enhancing our 3PL’s ability to kick eCommerce butt.
Figure 2 – APS to ISP data aggregation Benefits Leadership Engagement and Visibility: ISP engages key leaders from various departments in the planning process, ensuring their active engagement and commitment through rapid network and supply chain analysis.
Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Reverse marketing starts first with Value Analysis. Your team should have recorded all Value Analysis ideas in detail to get back to the Supplier by (date).
It will also bring greater assurance that customs brokers are knowledgeable in customs laws and regulations, familiar with operational processes, and can properly exercise brokers fiduciary duties. The clients will benefit from better performance and improved compliance.
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.
The first one arrived a few years ago when a growing number of companies started treating supply chain design as a continuous business process instead of a standalone project or a once-a-year exercise. It was a strategic/tactical analysis, disconnected from day-to-day operations, and the software tools were difficult to learn and use.
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. 20%) make up a greater percentage of what we sell (80%). Product Travel Requirements.
An RFP is a data intensive exercise. This made the data analysis easier. This made the data analysis “painful.” Simmons always does an ROI analysis prior to purchasing a solution. Even today, now that the pandemic shocks have largely worn off, 20% of this year’s lanes are new to the network.
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?
Customs and Export Procedures Logistics companies need to exercise caution in navigating the varied customs procedures of different countries. Cultural Protocols and Business Habits Collaborating with companies from different cultural backgrounds requires sensitivity to business protocols, ceremonies, and cultural nuances.
The root cause analysis skill was developed to identify reasons for customer service level cuts and revenue losses. This exercise was previously a cumbersome manual exercise done on a weekly basis for the top 45 stock keeping units (SKUs). The analysis was not all that accurate.
Our common goal is to ensure smooth operations with the utmost respect for the integrity of the product: we are planning together to streamline our handling process in order to ensure flawless service and make Milan the main pharma gateway for southern Europe.”
The erratic Arctic environment necessitates specialized navigation and infrastructure, forcing shipping companies to exercise caution when entering these uncharted territories. Melting ice has unlocked new shipping routes, promising faster transit times and less fuel consumption. However, these routes bring their own challenges.
The key is effective data analysis, trusted modelling tools and a systematic approach that provides total visibility across the entire supply network. This will support an effective demonstration of probable outcomes during the planning phase based on selected COAs, supported by an ability to intervene where required.
Network analysis will be crucial for finding the best configuration of return centres, given factors like retail locations and transport facilities with backhaul possibilities. Speed will be an important factor. The faster a returned item moves through the system, the greater the net value that can be recovered.
Iranian provocations have included boarding oil tanker ships and taking control of the vessel, in an effort to exercise power and dominance in the region, as well as a recent helicopter flyover of a Chevron-operated oil tanker. Therefore, it’s in the interest for the U.S.
More supply chain companies sharing more real-time data creates richer opportunities for benchmarking, analysis, insights and collaboration to drive business benefits for all parties.
The first exercise is to determine if a warehouse should have a pick aisle, by analyzing order history/product demand, and the second exercise is to architect the appropriate slotting (positioning of the product) within that pick aisle. However, slotting is not just dedicated to Pick Aisles, but Bulk Storage too.
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.
The Russian Navy has already encircled Ukraine’s ports and warned-off civilian commercial traffic so they could engage in live-fire exercises. Bunker surcharges may get affected by this. Even though this may not directly affect Asia-U.S. and Asia-E.U.
and China conducting naval exercises. The shipping industry has learned from losses in the past but predictive analysis could be the difference between a safe voyage and a disaster.". These disputes have resulted in increasing military presence in the South China Sea, with the U.S. Last year saw two major collisions between U.S.
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 it’s time to undertake a gap analysis. Ideally, though, evaluating your position against competitors should not solely be a KPI benchmarking exercise.
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. It is impossible to understand logistics constraints and limitations if they lie un-examined.
Specialized data analysis firms such as Cargonet have found that cargo theft is peaking and the losses being suffered by manufacturers, shippers, and logistics service providers have reached historic highs. It is information analysis that plays a critical role in the prevention of crime.
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.
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.
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 is especially the case with logistics.
It will enable data sharing among all functions, highlight errors and outliers in the data, and speed up data analysis thus increasing efficiency, improving accuracy and lowering operating costs. However, like with all new things, there’s a need to exercise caution. However, like with all new things, there’s a need to exercise caution.
Fourthly, the logistics organisation must be exercised and be the subject of experiments which qualify risks. These leaders must make trade-offs with respect to Defence resources and vacuous analysis provided by logisticians and others offers nothing to them in decision-making.
The ADF’s preparedness prior to this operation has been scrutinised through reports and analysis, at levels range from tactical to committees of Government. Any operation defending the Australian north-west demanded was a difficult logistics enterprise, as highlighted by exercises such as the long-standing ‘Kangaroo’ series.
What I find about benchmarking is it is often an internal exercise to justify what someone is doing to higher management. The question is, from a "should cost" analysis, are you as good as you should be? That is where energy is best spent. My question always has to do with expectations. Of course, you are better, you are huge!
This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximize cost savings. After completion of its customer-centric supply chain analysis, Whirlpool knew innovation was necessary to maintain a competitive advantage.
A training needs analysis (TNA) will identify where employee training can make a meaningful contribution towards improving performance. The analysis can also reveal other variables that cause employees not to perform at the optimum levels– organizational culture, personal problems, job satisfaction or financial compensation.
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.
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?
Whether you are managing them yourself, or have outsourced the management of your supply chain, it's a really good exercise to understand how it all works. Analysis paralysis can slow you down. Don't base your analysis on the rate provided, there are often other charges that need to be taken into consideration.
Having done some quick primary root cause analysis it was concluded that the increased metal level was the prime reason contributing to the failure. The field engineers claim- We gave all the necessary information for the analysis, were not aware how to decipher the readings against the reference values so could contribute very little.
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