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Just as your body needs multiple defense mechanisms to fight off illness, your supply chain needs various strategies to handle disruptions, whether they’re local supplier issues or global crises. Let’s look at five proven strategies that can help you create a more resilient supply chain.
But if you can reduce cargo and shipping damage , you can cut shipping costs. With the right packaging, strategy, and tools, you can cut shipping costs by as much as 60%. You can substantially cut shipping costs when you know exactly where damage is occurring, and why. Make Labels Clear.
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.
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 costreduction, I wouldn’t be surprised at all.
Perhaps you haven’t had much opportunity, amid the turmoil, to consider the cost to serve your online customers. The tips in this article will help you know how to identify the customers, products, and processes that might be inflating your cost to serve (CTS) unnecessarily. High Cost to Serve: It’s an Omnichannel Problem.
Any warehouse design exercise that doesn’t include a rigorous approach to designing the processes and equipment layout for Order Picking, is suspect. Good order picking processes can save labour costs, increase productivity and customer satisfaction and ultimately more revenue and a competitive advantage.
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?” When costs begin to spiral out of control, the result is usually a loss of revenue in proportion to sales.
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. We hope the tips and ideas in this article will help you make inroads into warehouse energy and labour costreduction.
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.
In this article I will outline, firstly, the reasons why organisations outsource logistics activities, and secondly, what the key drivers are for outsourcing success. In choosing to outsource , firms can therefore transfer all of the costs of distribution to their profit and loss account. But what about cost of service?
This article explores how adaptive supply chains can help businesses thrive. They design their supply chain on a continuous basis and focus on ecommerce retailing strategies that segment their customer base according to buying behavior. This collaboration enables faster response times and cost savings.
In this article, I will redress the balance by exploring outsourcing from a more holistic perspective, focusing on ways to consider outsourcing partnerships for improvement throughout the supply chain. Outsourcing for Reduced Supply Chain Cost Few business leaders would argue that reducingcosts in the supply chain is an improvement.
Companies with global supply chains—a category which includes a fast-growing number of corporations, medium-sized companies, and even small businesses—can be standing on a cost base of which 90% is attributable to supply chain expenditure. . Supply Chain Strategy. The Top 7 Supply Chain Points to Address for Business Success. .
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. How Much Does It “Cost to Serve” Your Customer? It costs you a certain amount to make a product. Sales organisation costs.
If you browse through the Logistics Bureau blog, you’ll find at least two or three articles—and about the same number of videos—that cover warehouse product slotting. Slotting is all about optimising the placement of warehouse SKUs to gain efficiency , increase productivity , and reduce operational costs. Pretty good, right?
The Royal Australian Air Force, now armed with the fifth-generation fighter and other impressive air capabilities guided by a wholesale transformation strategy – Plan Jericho, has recently debated the need for a joint strike capability. Logistics and strategy are inseparable, each meaningless without the other. By David Beaumont.
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.
Emergency purchases are bad news for your business costs, continuity, and planning, and they also increase supply chain risk. By shortening supplier lead time, you might find opportunities to reduce safety stock levels and gain other inventory management wins for your organisation. Cost per Purchase Order and Cost per Invoice.
Similarly, the occasional articles such as Brigadier (retd) Mick Kehoe’s series at Logistics In War , remind us that there are pertinent personal stories from the past that remain eternally relevant to the soldier, sailor or airman. This article will describe the impact of strategic resourcing and logistics problems on operations.
So thats the route were taking in this article (no pun intended), we’ll be exploring the evolution of fleet route optimisation from a time-consuming pen-and-paper exercise to a high-tech process that, in some cases, can be completed in minutes. But first, what is route optimisation?
In answering that question, we’re not going to provide you with a list of possible supply chain KPIs to use in your business—at least, not in this article. Because you can find plenty of other articles on this blog and the Logistics Bureau blog if you’d like to peruse such lists. The Importance of Aligned Objectives.
Original article: PODCAST: Modern Courier Delivery Compliance Considerations: Understanding SOX and SOC Compliance Logistics and supply chain are some of the world’s most complex and regulated industries, which has been further compounded by increasing reliance on data and technology in both fields.
This article explores the implications of the port congestion surcharge and the possibilities of avoiding or minimizing it. Container shipping charges are high enough as it is without adding avoidable costs. Ships do not want to wait in the queue but waiting in the queue also increases costs. The statistics are telling.
Product slotting is one of the few cost saving ideas that you can implement in your current facility whilst making no changes to infrastructure (although there may be further benefits to do that). Essentially, it’s about organising products so that frequently picked items are easily accessible, reducing the travel time for pickers.
This article explores two such ways modern digital tools can elevate the performance of 3PLs on the way to creating stickier customers. When billing rates and effective dates change, a system alert notifies both parties in advance, eliminating misunderstandings through improved, proactive communications. But can technology do more?
The following text is of a presentation given at a 2019 Wiliams Foundation conference, ‘Sustaining self-reliance’ As the original article cannot be found on other sites, it is provided here with some slight adjustments. Present day convenience will likely cost the future ADF dearly.
In 2018 a Forbes magazine published an article entitled “Every company is a data company” in which the authors urged all companies to use data as a core asset. Exercise trackers like Fitbit or Garmin are part of an IoT network that collects and analyzes data from objects – people. Energy efficiency and cost-saving.
Warehouse Slotting can reduce labour costs by up to 20%! This extra time can be related to direct labour costs as well as the increased picking time, measured by pick rate (units picked per standard person hour). All of these symptoms potentially are a sign that a slotting exercise is overdue. Product Slotting.
This article follows-up last week’s post on logistics in deterrence. . This article examines military power from the position of a theorist who saw geography and logistics as central to his vision of national power. By David Beaumont. One of the more abstract ideas prevalent in this discussion is the concept of national power.
In a recent article published in Mundo Logística , Tereos’ Logistics and S&OP Executive Manager, André Margoto , shares valuable insights on how agribusiness companies can use optimization models in (near) real-time to inform planning decisions and bolster their S&OP process. That is, after all, what S&OP (or IBP) is all about.
By David Beaumont This article, and the series which follows, are an updated version of a presentation given at the Australian National University titled ‘ Logistics preparedness and mobilising the national support base: the effectiveness of ADF strategic logistics prior to Operation Warden 1999 ‘. P art One , Two and Three can be found here.
If you’ve never done a benchmarking exercise before, read on. You will learn how you can significantly boost your supply chain performance—and in the process identify numerous cost-saving opportunities. If you’ve never tried a benchmarking exercise, why not give it a go, at least at the informal level? Informal Benchmarking.
Since I first published this article back in 2009, warehouse design principles haven’t altered that much, but as we received many comments, including requests for more information, I figured it might be a good idea to expand on the original piece. Your distribution strategy too, will have a bearing on network optimisation.
A better understanding of supply chain cost dynamics can help companies recognise their profitable customers. Traditional reporting methods aggregate revenues and costs to the extent that poorly performing sectors of the business are hidden from view. Read More: Cost to Serve – A Smarter Way to Improve Supply Chain Profitability.
By David Beaumont This article, and the series which follows, are an updated version of a presentation given at the Australian National University titled ‘ Logistics preparedness and mobilising the national support base: the effectiveness of ADF strategic logistics prior to Operation Warden 1999 ‘.
These articles might suggest to some that any attempts to devote time to addressing logistics readiness are likely to fail. All militaries enjoy large-scale exercises, simulations and desk-top analyses but very rarely do they focus upon the logistics process. I described the interplay between logistics and readiness.
In this short article, I’ll redress the balance a little by highlighting a few practical guidelines which, if adhered to, will increase the chances of a successful logistics outsourcing alliance. An extensive process mapping exercise, prior to supplier selection, should help to prevent this issue. Lets’ Raise a Half-full Glass.
You needn’t venture far to find an article or military concept which in some way promotes technology and capability modernisation as a means of addressing the next, albeit hypothesised, battlefield challenge. By David Beaumont. But the introduction of technology can also have hidden, sometimes operationally inconvenient, consequences.
It is also fair to speculate that future supply chain designs will need to be monitored using new performance measures such as resilience, re-configurability, and responsiveness, along with traditional KPIs such as cost, quality, and delivery. Not only does this spread the risk, but transportation costs are lower. 4) Create Redundancy.
In this article, US Army logistician Jessica McCarthy examines a challenging, contemporaneous, issue for many Western militaries – how much contractor support is enough? . A great site containing forward-thinking articles examining the character of contemporary and future warfare, it is well worth following. . Transportation.
If your business is currently falling victim to any of the following supply chain mistakes, corrective action will undoubtedly deliver improvements in cost, revenue, customer service and numerous other business performance factors. Overlooking/Misunderstanding Cost-to-serve. Is Your Company Making These 5 Supply Chain Mistakes?
In this article, we will explore 11 proven sales strategies that can help you increase your flower shop sales and cultivate lasting relationships with your clients. Explore Different Suppliers Shopping around for flowers and supplies is crucial for any florist aiming to optimize cost efficiency. Explore Different Suppliers 2.
This led to increased levels of trade to distant locations, which were facilitated by more efficient and cost effective use of commercial air, sea, road and rail assets. Employee redundancy became common place as companies found they could not sustain their burgeoning cost base against fluctuating revenues.
Such public discussion tends to focus the military mind on modern tactics and technology, and gives cause to exercise new operational concepts. There has been an understandable proliferation of military articles describing the need for forces to be ready, including logistics forces essential for any operational response.
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