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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. 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.
As a supply chain director, manager, or boss of a multinational corporation, where the supply chain is an integral part of your business, supply chain cost reductions are always at the forefront of your team’s mind. Vendor Managed Inventory Model for Supply Chain Cost Reductions.
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?” Some of your processes or activities may erode your margins through excessive resource consumption.
A plan is necessary, possibly based on one of the following strategies. Hidden Opportunities for Supply Chain Cost Reductions Of course hidden costs, if you can find them, mean hidden opportunities. Reverse Logistics Strategy 1: Don’t do it! Clearly, successful reverse logistics cannot be left to luck.
If you were to tell me that your company had never looked at its supply chain costs and sought to deliver reductions, I would be mightily surprised. On the other hand, if you told me your company hasn’t been able to sustain any progress in supply chain cost reduction, I wouldn’t be surprised at all.
At the next Logistics Bureau Free Executive Breakfast (which will take place in August), I’ll be discussing the alignment of supply chain and business strategy along with eight other important levers for supply chain performance improvement. The Failing Kmart Business Strategy. The first Kmart store opened way back in 1962.
Customs and Export Procedures Logistics companies need to exercise caution in navigating the varied customs procedures of different countries. Non-compliance or high customs fees may negate efforts invested in customer satisfaction and cost reduction, potentially harming the company’s interests.
Let’s begin with a look at why, in general, retailers with multiple sales channels are more likely to experience difficulties in reducing cost-to-serve. Again, these are changes that can add to your cost-to-serve, and, during your transition, you might not have had time to look for ways to reduce expenditure.
Supply chain policies and configurations are tested and leverage reinforcement learning to yield the best possible strategies. By understanding the behavior of the supply chain under diverse conditions, companies can develop strategies that enhance flexibility and responsiveness.
However, the lag in the Sales and Operations Planning (S&OP) cycle exacerbates issues like inaccurate forecasting, reduced agility, higher error rates, increased costs, limited scenario planning, and sustainability challenges, ultimately undermining supply chain performance and eroding executive confidence in the supply chain as a value driver.
If you’re a decision-maker with accountability for your organisation’s entire supply chain, and you’re just starting to think about outsourcing, perhaps to reduce costs or improve service, this post should prove well worth the few minutes it will take you to read it. What Can You Outsource, and What Should You Outsource?
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy. In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies.
While some aspects of this article may be dated, the article speaks to a range of issues directly relevant to national security in a post-National Defence Strategy age. Firstly, it recommended conducting realistic wargames and exercises to reflect threats and the capability of the logistics enterprise to respond.
Supply chain strategy is critical to business success, but is often underestimated in its importance and hence receives less strategic attention than other areas of operation. Supply Chain Strategy. In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies.
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. As a result, weve discovered that many companies lack a defined and documented supply chain strategy. A company without a supply chain strategy is at a competitive disadvantage.
This situation has been compounded by the fact that Covid-19 essentially exposed what was already an underperforming process thanks to factors such as the US-China trade war, less efficient shipping routes and a huge drive to cut costs by consolidating loads. Align your business and supply chain strategies. The benefits of ERP.
Slotting is all about optimising the placement of warehouse SKUs to gain efficiency , increase productivity , and reduce operational costs. Or a similarly sized reduction in warehouse labour costs ? Therefore, any slotting strategy should focus on minimising such travel. Why Implement Slotting in Your Warehouse?
You can achieve the benefits by simply rearranging products – within existing storage media – to reduce travel distance for pickers in your warehouse. Essentially, it’s about organising products so that frequently picked items are easily accessible, reducing the travel time for pickers. Reduce product damage.
Of course, there is no quick and easy way to curb increases in the cost of energy and labour, but now is an excellent time to start thinking about practical ways to reduce energy usage and increase labour productivity and efficiency. There are several possible ways to eliminate this form of energy wastage.
Logistics readiness is not just a matter of prioritising Defence resources. 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.
The ADF lacked the logistics resources, organic or those from civilian or international sources, to fulfil the requirements of a realistic approach to preparedness prior to the operation. The ADF’s preparedness prior to this operation has been scrutinised through reports and analysis, at levels range from tactical to committees of Government.
Moreover, the factors and issues described here deal with the complexity of generating institutional strategy (as distinct from a military or operational strategy) and leadership within a complex environment. Realised strategy is usually a combination of what was intended and what was learned along the way. Strategic failure.
For Mars, digitalization has focused on improved customer service, cost reductions, and making their supply chain associates more productive. The second goal was to work with a fourth party logistics (4PL) partner that had invested in cutting-edge transportation management and visibility solutions. The change management was difficult.”
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. In the first instance, you could reduce CTS and increase profit, without upsetting the customer.
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. Logistics capabilities were cut on a policy mandate, under the assumption that national support would be available when needed.
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. Logistics capabilities were cut on a policy mandate, under the assumption that national support would be available when needed.
At the risk of sounding overly critical of Lowy’s impressive resource, the ability of an ‘armed force to deploy rapidly and for a sustained period’ probably deserves a greater weighting than 10% of total military capability. Its influence, however, is also highly understated. Distance, once again, became important to the military mind.
Above all else is logistics, which begins where military activity meets the national economy, and fundamentally leads strategy and any intent to use force. Strategic competition has always been defined by logistics, and the credibility of a nation to deploy and sustain force is important not just for strategy, but for deterrence.
Moreover, the factors and issues described here deal with the complexity of generating institutional strategy (as distinct from a military or operational strategy) and leadership within a complex environment. Realised strategy is usually a combination of what was intended and what was learned along the way. Strategic failure.
It certainly helps to have ample logistics support at the outset of a crisis or in response to a contingency, but it is also wise to use resources sparingly and at the time their value is highest. Fourthly, the logistics organisation must be exercised and be the subject of experiments which qualify risks.
The partnership accomplished Whirlpool's early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company's distribution network and reduce supply chain costs. By taking this step, Whirlpool hoped to further reduce supply chain costs.
Moreover, the factors and issues described here deal with the complexity of generating institutional strategy (as distinct from a military or operational strategy) and leadership within a complex environment. Realised strategy is usually a combination of what was intended and what was learned along the way. Strategic failure.
Logistics readiness is not just a matter of prioritising Defence resources. 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.
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.
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. Development of profitable strategies for customer or product segmentation. High CTS/high revenue yield – love to hate.
This loss of focus can result in under performance and revenue reduction. Reduction in Asset Capital Warehouses and vehicles are expensive to purchase or lease and can tie up millions of dollars that could otherwise be invested in the core business of the firm. To assist your analysis, examples of industries are plotted on the matrix.
At Logistics Bureau, we want to help you with that, so we’re publishing this brief guide to help you if you haven’t already included freight benchmarking in your management strategies or want to benchmark more effectively than you are now. There are several advantages to understanding your freight costs compared to the market generally.
At the risk of sounding overly critical of Lowy’s impressive resource, the ability of an ‘armed force to deploy rapidly and for a sustained period’ probably deserves a greater weighting than 10% of total military capability. Its influence, however, is also highly understated. Distance, once again, became important to the military mind.
this exercise helps retain mobility in the damaged joints". A strong acceptable use policy for employees can also contribute to a successful enterprise mobility strategy. The top three technology priorities of industrial manufacturing CEOs are mobility (73%), cybersecurity (72%) and data mining and analysis (70%). mōˈbilədē/.
Cost To Serve (CTS) enables companies to reduce cost and improve EBIT (earnings before interest and tax) performance by up to 20 per cent. Implement the CTS discipline and identify the areas of opportunity to reduce costs and improve sales. Re-balancing inventory across the business to improve service and reduce costs.
The Statement also introduced the notion of a ‘Sovereign Defence Industry Capability’, an industrial resource of such vital concern to the Australian Defence Force (ADF) that it must be maintained if not controlled for the purposes of national defence. 1] These paraphrased points are summarised at Fruhling, S.,
However based on observations made in the course of our consulting work, many organisations perceive it as a purely remedial or punitive exercise. By doing so, you can reduce the need for supplier micro-management and avoid situations where reaction is the only option. Why is this a mistake?
A plan is necessary, possibly based on one of the following strategies. Reverse Logistics Strategy 1: Don’t do it! Sectors like publishing of software, books, music, and so on, also offer another way to reduce returns.They increasingly make their wares digital instead of physical and sell on demand. A plan is necessary.
Some suppliers view RFPs as static cost-cuttingexercises, which devalue their offering. Suppliers need to invest time and resources into learning the steps and methods involved in each platform. Ideally both of these features should be available.
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