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Situation Companies are increasingly confronted with complex planningscenarios due to predictable events such as mergers and acquisitions, category expansions, supplier changes, and distribution evolution, as well as disruptive events including demand volatility, material shortages, capacity constraints, and logistical surprises.
Today’s supply chains are fraught with uncertainties across demand and supply yet are tasked with adding incremental value to their organizations while also meeting commercial, working capital and sustainability goals. The challenge for supply chain teams lies in increasing knowledge to create value amid this complexity.
Note: Today’s post is part of our “ Editor’s Choice ” series where we highlight recent posts published by our sponsors that provide supply chain insights and advice. Today’s article is from Ahmad Jiwani at Coupa and looks at supply chain design. How often do you revisit and update your supply chain designs? Once a year?
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.
When it comes to supply chain design, we’re at another inflection point in the industry. 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.
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.
Has your company ever suffered problems with, implemented, or even considered implementing a sales and operations (S&OP) planning process? More to the point, though, for S&OP to be effective, it matters not whether a company uses Excel spreadsheets or the latest best-of-breed sales and operations planning software.
Mars has been on a journey to transform their digital supply chain. In 2019, Will Beery was appointed the vice president and tasked with leading the company’s global digital supply chain transformation. Mars’s Digital Transformation Mr. Beery started by asking, “what does a digital supply chain mean for us?”
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. What is Reverse Marketing?
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.
Massive supply chain disruptions are being experienced around the globe, and the causes are many and complex. Factors affecting the supply chain. There’s no doubt that the pandemic, with its harsh lockdowns and impact on economies worldwide, has played a dramatic role in the supply chain disruptions being experienced by manufacturers.
Whether you’re planning to benchmark your supply chain or simply trying to improve how you measure its performance, it makes sense to know a little about the most commonly used KPIs for each supply chain component. A lot will depend on the nature of your industry and the categories of supplies that you receive.
Supply chains are complex entities. While customer satisfaction is a hugely important criterion by which supply chain success is judged, so is supply chain profitability. While customer satisfaction is a hugely important criterion by which supply chain success is judged, so is supply chain profitability.
Reverse logistics, while not being the opposite of forward logistics, is still about products moving backwards in the supply chain. However, remember that products or subassemblies that never made it out of the factory may need to travel backwards one or more stages along the supply chain. This also qualifies as reverse logistics.
The answer varies from function to function in the supply chain. Inventory Management is about having a right balance of expectations from different functions of the supply chain. Inventory Management is a function that should always be in sync with your supply chain strategy and in turn depends on your overall business strategy.
Understanding the supply chain constraints now is primarily important as there is still time to fix any discrepancies we might have before COVID-19 vaccine regular shipments. This shipment is a great example of collaboration between carriers, ground handling agent, freight forwarder, container manufacturers, airport and customs authorities.
By David Beaumont Discussions about self-reliance, like many other conversations among defence planners, rarely begin with a conversation on supply and support. The ability of a military to conduct operations independent of anothers aid is intrinsically linked to the capacity to move, supply and support that force.
If you plan to continue your omnichannel retail operation, though, and compete successfully with pure-play etailers, it’s something you will need to get a handle on. 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.
Some of the world’s biggest retailers and their partners are once again feeling the sting of “ the bullwhip effect ” – a term of art amongst supply chain professionals that describes how changes in demand at the retail level can reverberate and amplify issues throughout the supply chain. What orders are planned versus in process?
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. Logistics plans and policies. Logistics organisation.
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 impact of supply chain performance on the success of a business is significant, but often underestimated, even within companies well-versed in supply chain management. Look for the signs, recognise the symptoms and if you need it, get some help to fix these important supply chain issues.
With this varied inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Using a Service Level Agreement with effective, realistic Supply Chain & Logistics KPIs helped considerably. Taking a Customer-Centric Approach.
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. Deere & Company.
The purpose of a warehouse is to provide storage of products to meet customer demands and inventory allows the decoupling of demand and supply. Often this inventory is used to smooth out the supply chain from disruptions (whatever they might be). All of these symptoms potentially are a sign that a slotting exercise is overdue.
It is a well-known fact that supply chain is increasingly becoming digital. But is simply adding a digital component to the complex supply chain network enough to make it efficient? According to IBM, integrating supply chain with customer insight is essential for the success of the omnichannel. What more is required?
What were the indicators/warnings of an impending supply shortage? Despite the pleas from the major supermarket chains that there were no supply issues, consumer hoarding continued at dangerous levels. What was the basis of their concerns? The “just in case” requirement is often applied without a full understanding of the implications.
9 Golden Rules for Meaningful Supply Chain KPIs. I’ve written many posts on this blog about the importance of having a supply chain strategy that’s aligned with the overall business plan, and why it is a mistake to have misaligned strategies. Golden Rule #1: Meaningful KPIs Require a Meaningful Strategy.
Despite labor shortages for supply chain operations, limited warehouse space, congestion and lead time issues, the biggest problem in the shipping industry is still securing market capacity and pricing. Carriers’ new plans to add capacity to the U.S. million TEUs. Port congestion on the U.S. East Coast may not be as fruitful, as U.S.
In that type of scenario, the gains in accuracy and speed might be better achieved by slotting products intelligently along the aisles. Scenarios like this highlight how critical it is, when slotting, to think about SKU placement from all angles and why the slotting process can be complex , even if the concept is simple.
Let’s look at the basics: what slotting is, scenarios where it may prove useful, the key benefits of slotting and then some tips from decades of experience in the industry. After helping many clients with their warehouse slotting process, we find that the same scenarios keep popping up. What is slotting?
Secondly, they must have the right plans and policies in place to support effective planning. Thirdly, they must understand that ‘militaries limp to war’ meaning materiel readiness must be managed so that equipment and supplies are available when required. More on this later.
It simply means checking your company’s rates paid for freight transportation against those borne by its peers in the same or similar industries and shipping scenarios. and “what is a reasonable range of rates for our company’s typical shipping scenarios?”. Indeed, it’s a very straightforward concept.
Through its extensive span of activities, the supply chain sector offers wide-ranging possibilities for employment and career progression. In a different context, online retailer Amazon spotted inefficiencies in the supply chains of other companies. This adds up to considerable potential for varied and satisfying supply chain careers.
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.
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. A Long History of Supply Chain Strategy Misalignment.
Image source: Flickr | How to Protect Supply Chain from Cyber Attacks The management of data intelligence in the supply chain presents an enormous challenge to those involved. The supply chain depends more and more on IT systems to ensure information flow and security as it develops. What happens in the event of a data leak?
Does the following scenario sound familiar to you? He or she has spent perhaps four to five years gaining a supply chain education, starting even before leaving high school, because he or she is passionate about working in the space. Schools Out: Let the Supply Chain Education Begin. Courses Endorsed By Industry Associations.
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. Logistics plans and policies. Logistics organisation.
Unpublished data from one clinic has found that 1% of tests done in seafarers planning to join a ship were positive and these seafarers were successfully prevented from travelling to, and joining, the ship. Periods of planned outdoor exercise are essential and must be facilitated. Delay in transport or analysis.
This is important to avoid having to seek out additional space in a low-supply, high demand, high-price market. By performing an analysis of the top products by average daily/weekly demand, it is possible to determine the fastest moving items that should be allotted prime accessible pick locations. configuration.
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.
In supply chain, the complexity can be far greater. Business continuity management seeks to keep a supply chain working in the event of a problem. The need for business continuity permeates all parts of a supply chain. The first step is to find out what could interrupt your supply chain operations.
As we close in on the end of the year, supply chain professionals are already planning for what 2023 will bring. o9 Solutions’ supply chain experts and leaders are sharing their insights on the trends that could become prevalent in 2023 and beyond. Supply chains will become the strategic drivers of business.
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