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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.
We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. We hope the following case study shows you the proverbial proof in the pudding of effective Logistics KPIs management. .
The following five mini case studies explore a few high-profile companies that have managed to sustain their supply chain cost-reduction efforts and keep expenses under control. Procurement analysis. The enterprise as a whole was not taking advantage of synergies and economies of scale (and the benefits of the same). Sunsweet Growers.
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).
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. Time will tell how effective this organisation will be.
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.
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.
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?
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.
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.
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. Time will tell how effective this organisation will be.
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.
Knowhow of slice and dice data analysis, possibly true but in my opinion these are not comprehensive enough. Here''s presenting the case study of how a seemingly workable condition monitoring exercise can possibly go wrong. A high profile instrumentation infrastructure?
According to a study conducted by IBM and National Retail Federation (NRF), the retail and consumer goods industry is designating intelligent automation, also known as artificial intelligence, as the future of supply chain. However, like with all new things, there’s a need to exercise caution. What more is required?
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.
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.
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.
Mini Case Study: Walmart. 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. Mini Case Study: Whirlpool.
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. What Kind of Reports Can I Create with My Transportation Data for Analysis?
Fuel and ammunition feed into the discussion of force posture, and the importance of exercises to build ‘preparedness including minimum viable improvements in key areas’ is also clear (pp 78-80).
Recent studies have shown that among the challenges frustrating warehouse and distribution centre managers this year, rising energy and labour costs are two of the most often cited. A warehouse benchmarking exercise is an excellent way to start the quest for improvement opportunities. Could your enterprise benefit from such a solution?
As in other domains, data analysis and business intelligence requirements and opportunities are now on the rise. A recent study from the Canadian Supply Chain Sector Council forecast that by 2017, supply chain employment in Canada would increase at an annual rate of over 8 percent for tactical roles and almost 15% for managerial roles.
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.
Case Studies. |. 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. Mobile Banking. Payments Treasury. Wealth Management.
That’s not to say that the following signs and symptoms are harbingers of disaster, but they should certainly prompt a distribution network design review, along with a modeling exercise to check if your outbound supply chain is maintaining that all-important balance between cost and service. How to Act on Network Design Warning Signs.
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.
While a number of factors are doubtless contributing to the Kmart demise, only a minor amount of analysis is required to identify supply chain misalignment as being one of the primary issues, which the company has never managed to correct. The Failing Kmart Business Strategy. The first Kmart store opened way back in 1962.
Case Studies. |. 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. Mobile Banking.
Photo: WFP Photo Library Cost-benefit analysisstudies carried out by WFP and partners have shown that every dollar invested in school feeding programmes can yield up to 10 dollars in improved health, education and productivity. Training on food safety and quality (here, in Kenya) is a crucial element of school feeding programmes.
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.
Gain Industry Experience and Study. Turning on your business know-how is important too, because you need careful analysis and critical thinking to make the best of existing opportunities. So what does it take to become the much-needed middleman in the transportation industry? What do you need to become a freight broker?
Second, we study the flow of goods and services that are the ever-present relays of intermodalism. Students work individually and in teams, studying modern supply chain issues to identify problems, suggest practical steps for execution improvement, and communicate findings. It is also an exercise in trade-offs.
Römmele explains that all Continental products go through a threat analysis and risk assessment (TARA). “We There is an overlap of issues you would find doing a source code assessment and a static binary analysis,” Boulton explains. “It’s a stepwise approach,” Römmele says. Once in the field, products have to be updated securely.
What do I need to study? This portion of training must consist of “demonstrations performed by the trainer and practical exercises performed by the trainee” [OSHA standard 1910.178(l)(2)(ii) ]. Then, when you start, you’ll watch videos, do some reading, and complete interactive exercises to help you learn and retain the information.
It is unsurprising that a recent USPACOM exercise highlights the vital importance of strategic and operational lift in this environment. One need only refer to Kenneth Privratsky’s Logistics in the Falklands War: A case study in expeditionary warfare to get a sense of the logistics factors at play.
It is unsurprising that a recent USPACOM exercise highlights the vital importance of strategic and operational lift in this environment. One need only refer to Kenneth Privratsky’s Logistics in the Falklands War: A case study in expeditionary warfare to get a sense of the logistics factors at play.
To illustrate the application of cost to serve, two brief case studies are taken from very different industries. Applying Cost to Serve: Case Studies Orica Mining Services (OMS) provide explosives and related services to the mining industry. The above are just some examples of the information extracted from the model.
Mini Case Study: Walmart Walmart may be the most famous example of a company that has succeeded primarily because of a well-developed and aligned supply chain strategy. The use of a methodology known as “cost to serve analysis” often reveals shocking realities about supply chain costs.
Never Delegate Understanding – the Limits of AI Charles and Ray Eames designed some of the most iconic furniture of the 20th century through a deep study of an object’s purpose, a process that led to their famous adage, “Never delegate understanding.” In short, delegating to AI is moving fast and making an impact.
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