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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.
Products come back in dribs and drabs, not in nearly packaged batches. When marketing sees why products are being returned, it can improve product features like quality, packaging, and usability. It would be tempting to think of reverse logistics as forward logistics done backwards. Tempting, but wrong. Almost everything can change.
Customs and Export Procedures Logistics companies need to exercise caution in navigating the varied customs procedures of different countries. Companies must be attentive to cultural nuances in product design, packaging, and overall strategy to avoid economic challenges arising from difficulties in breaking cultural taboos and rules.
It is a package of methodologies and statistical models developed to perform inventory rationalization and improve service within the logistics industry. This system uses Multi-Echelon Planning as a base combined with statistical models we developed that are applied at different phases of the exercise.
There was no logic to the unprecedented demand for basic consumer goods that was later replicated in increased demand for selected pharmaceutical goods and packaged alcohol. The key is effective data analysis, trusted modelling tools and a systematic approach that provides total visibility across the entire supply network.
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. Figure 1, Location of ABC products (Source DC Expert 3 D drawing package).
Your fact-finding efforts should seek to determine what your customers want in the following aspects of supply chain service: Packaging and labelling requirements. Step 2: Gap Analysis – Customer Requirements and Supply Chain Trends. But the only way to find out is to speak with those customers directly. What do You Need to Know?
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. Proper packaging Select packaging that minimizes harm to products when they are being transported. As a result, maintaining equilibrium is crucial at all times.
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.
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. With the team managing to complete it on time, every face was a smiling one.
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.
In order to import medical devices in the higher risk classes, you can expect to be required to produce documents such as certificates of conformance, certificates of analysis, Free Sale certificates, US FDA certificates (if sourced from US) and/or item catalogues or brochures. Disinfectants are usually dangerous goods.
Consumer Packaged Goods. 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. Enterprise transformations are a multi-year exercise in the making. Contact Us. Newsroom Investors Careers. Infosys Labs.
Forklifts, conveyors, pallet trucks, packaging machinery, and other powered equipment consume energy, drawing either on the warehouse electricity supply or on some form of fuel that your company must purchase at ever-increasing prices. A warehouse benchmarking exercise is an excellent way to start the quest for improvement opportunities.
While China is less popular than it once was as a destination for outsourced manufacturing, you can still find partners there that will save you money on manufacturing, assembly, packaging, and other labor-intensive parts of your supply chain.
Intel had already whittled packaging down to a minimum, and with a high value-to-weight ratio, the chips’ distribution costs could not be pared down any further. Procurement analysis. The chip had to work, so Intel could make no service trade-offs. These issues existed against a backdrop of a volatile, seasonal market.
Products come back in dribs and drabs, not in nearly packaged batches. When marketing sees why products are being returned, it can improve product features like quality, packaging, and usability. It would be tempting to think of reverse logistics as forward logistics done backwards. Tempting, but wrong. Almost everything can change.
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. . .
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.
Consumer Packaged Goods. We conducted a thorough analysis of these concerns & compared results in different geographies. This exercise was done before the monthly planning cycle start. Final Objective of this exercise is "to get it right the first time" when planners maintain any planning critical master data.
Risk Assessment and Business Impact Analysis. Making the business impact analysis is the next step. Suitable packaging helps keep breakages down. Taken to extremes, reckless spending on business continuity might even make your business go bankrupt, which would defeat the point of the exercise. Economic (E).
It will be all-hands-on-deck as the greater economy, industrial, manufacturing, and housing businesses all fire back up and that pent-up demand and idle cap-ex are exercised. (2) 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.
For example, brand manufacturers and retailers—are beginning to perform life cycle analysis of their products to ascertain the environmental impacts of the products they sell. Historically, this product ‘footprinting’ exercise was both tedious and expensive.
For example, a manufacturer may start to package finished goods in a way that eases handling by a logistics service provider who can then offer better prices for stocking and transport. Packaging and merchandising at this final stage, suitably supported by advertising, can make the difference between consumers choosing one brand or another.
Choose high if your process involves combining different types of goods, custom equipment preparation, assembly work, special preparation, decanting, re packaging, checking, identification of parts etc) Choose one: Low, Medium, High Now if you plot your answers on the matrix below you can quickly assess if using a 3PLO is right for you.
For example, a manufacturer may start to package finished goods in a way that eases handling by a logistics service provider who can then offer better prices for stocking and transport. Packaging and merchandising at this final stage, suitably supported by advertising, can make the difference between consumers choosing one brand or another.
Products range from packaged explosives (like the plastique you see in the movies), to detonators and bulk slurry type explosives delivered by the tanker load. Then a cost allocation exercise took place to improve on the allocation methods used within the financial systems.
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