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Quality and Detail of Data and its Analysis In some of our earlier posts, weve stressed the importance of simplicity in distribution network design , and we will return to that topic later in this article. Transportation costs: Freight rates, fuel and labour costs, and other transportation expenses.
She is a sought after author and speaker having been published in various books, articles, and white papers and spoken at dozens of industry events. Circular supply chains are interconnected systems that use secondary and regenerative inputs to generate value by reducing and extending resource use. Is circular economy more expensive?
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.
In this article, we identify key approaches by which companies can evolve their procurement and supply chain operations into a collaborative supply chain network that is designed to be resilient and responsible. The costs associated with purchasing these items hit the “operational expenses” components of the company’s financial statements.
It is no secret that many companies are utilizing such strategies as they seek to find new and better ways to “go more green.” Eco-friendly packaging is usually less packaging, and less expensive to create, touts articles like Good Things Come From Green Packages. The 3 R’s (reduce, reuse, recycle) = good karma.
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 reducing costs in the supply chain is an improvement.
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. 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.
Many articles on the topic of supply chain cost reduction have been written, most of which are understandably focused on issues such as inventory levels, network design, process efficiencies and supplier management/relationships. Support for sustainability (reduced waste generation). Sometimes Less is More.
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.
Of course, it is helpful to have some statistics on hand to validate the statement above. 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. What’s wrong with this picture?
Quality and Detail of Data and its Analysis In some of our earlier posts, we’ve stressed the importance of simplicity in distribution network design , and we will return to that topic later in this article. Transportation costs: Freight rates, fuel and labour costs, and other transportation expenses.
Today’s article comes from Eric Mcpherson at Open Sky Group and looks at a WMS budget and preparing for implementation. With both models, the first year always costs the most due to startup, training, and implementation expenses. To read the full article, click HERE. appeared first on Logistics Viewpoints.
Is it a good idea to reduce working capital in a supply chain? However, it corresponds to the amount of money you need to keep your supply chain working, so in reality you want to decrease it – without hurting supply chain performance, of course. Levers for Reducing Working Capital. Yes, in general.
Of course this stage of planning can become pretty complex, and it will often pay to seek advice from equipment suppliers or even engage a consulting firm to help you develop your storage strategy. Identify Bottlenecks : Pinpoint areas where operations slow down or become inefficient, and develop strategies to address these issues.
However, robotics could eliminate any of these manufacturer concerns as the technologies become more widely used, affordable, and available. Robots have the potential to create a limitless workforce that does not have additional expenses on a company. Robotics also impact the efficiency and analysis of supply chain processes.
I thought I understood all the major supply chain implications of the pandemic until I began reading Yossi Sheffi’s new book The New (Ab)Normal: Reshaping Business and Supply Chain Strategy beyond Covid-19. Now of course, companies must map out the potential impacts of the Russia Ukraine war. shale or Iran, for example.
The answer, of course, is yes. 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.
Conversely, of course, this also means there are a number of ways in which companies can get it wrong. Reducing inventory levels as far as possible makes your supply chain leaner and leaves you with less money tied up in stock. This doesn’t mean you have to invest in an expensive and over-complicated warehouse management system though.
Disclaimer: This article is a zoom out for the less freight-inclined. You’ve seen the Suez Canal memes, you know furniture is taking way longer than usual to get to your door, and you may have even heard about Pelotons shipped by air to reduce delivery times. Let’s talk freight. . More freight costs, higher consumer costs.
Throughout this time, 3PL transportation management providers have taken advantage of the low-costs of transportation, which further reduced the costs for businesses and manufacturers. Driver Expenses. The Bureau of Labor Statistics asserts courses to obtain a Commercial Driver’s License (CDL) last anywhere from three to six months.
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.
Never fear; an expert 3PL can eliminate that stress with the right software. So don’t wait, take our short 3PL platform tour now and discover how you can take advantage of more opportunities, reduce errors, make better business decisions, and save time and money! With so many moving parts, it can be easy to get lost or overwhelmed.
Article Summary. Whereas online courses and programmes were previously managed as a separate entity, they are now an integral part of most academic systems. The study showed that upwards of 30 percent of American students enrolled in at least one online course in 2018. Students can enrol in courses from anywhere in the world.
This article provides an inside look at today’s fresh supply chains around the world, and at how smart producers and retailers meet cool-chain challenges , especially as those chains increasingly span global distances and competitive markets expand. This is nothing new of course. Things You Need For Fresh Supply Chain Success.
Just keep reading to learn how you can cut your budget without cutting corners. #1. While we could dedicate a whole other article to budgets (stay tuned!), we’re specifically going to focus on your expenses here. Of course, creating a budget isn’t enough — you have to follow through with it too. Do you know….
If you’ve been wondering which strategy is more deserving of your time and money, this is the article for you. Well, customer acquisition is expensive — specifically, 5 tim e s pricier than customer retention (which we’ll get into in a moment!). Truth be told… they’re both great strategies! this article?
Every article we publish covering logistics and supply chain KPIs piques our website visitors’ interest and receives a wealth of positive feedback. In addition, those articles inevitably stimulate readers to post questions, which, over time, we try to answer in detail by creating new blog posts to address them.
In my Logistics Viewpoints article in April 2021, Building Profitability with Agility while Digitally Transforming the Supply Chain , I mentioned that we will continue to explore here the concrete steps in the digital journey and examples of determination from the top in addition to logistics operations. How great can the impact be?
You obviously don’t have to email back, of course … but please do consider these six issues as you work through growing your business… All of the issues I raise are ones in which our firm is very proficient. Do I have a disability buy-sell, or overhead expense coverage? 2: Is there an emergency plan?
As a result of only investing in an expensive marketing strategy, you immediately miss the point. We’ll offer you some pointers for managing your stock in this article. You should make every effort to keep storage expenses as low as possible because it costs money to store goods. In a nutshell, a situation to avoid.
While the development of a wholly demand driven supply chain (DDSC) might not be for every enterprise, there is no doubt that many can benefit from such as strategy. “In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” ” – Mark Zuckerberg.
The companies most likely to emerge strongly from the Coronavirus crisis are those that had diversified their operations and implemented multi-sourcing strategies. The reasoning behind this, is that the chances of all plants being disrupted at the same time are significantly reduced. 2) Diversify Your Operations. 4) Create Redundancy.
Reduced availability and breadth of shipping services (mainly in the near future). Post- Brexit shipping to Europe from the UK was hit particularly hard, becoming less reliable, more expensive, and slower. These problems triggered a reduction in service to the UK by mainline cargo carriers, making things for the UK even worse still.
Conversely, of course, this also means there are a number of ways in which companies can get it wrong. Reducing inventory levels as far as possible makes your supply chain leaner and leaves you with less money tied up in stock. This doesn’t mean you have to invest in an expensive and over-complicated warehouse management system though.
When I first began planning this article, the most significant impacts of COVID-19 were primarily limited to Mainland China. But of course, freight still needs to move, and for some commodities, such as personal protective equipment, a rapid supply chain is more critical now than it has been in many decades. sulphur content.
Now before you write off my statements as something you already knew, here’s a fact you might not be so familiar with: For your last mile services to compete successfully, you need to ensure that your entire supply chain (or at least the parts you can reasonably control) is set up to support a winning last-mile strategy.
More specifically, though, it has laboured under the expense of transitioning from two-day to one-day shipping as standard for members of its subscription offering, Amazon Prime. Logistics costs have increased substantially for Amazon as it delivers on its promise to cut Prime shipping times in half, while keeping delivery free for shoppers.
While it’s the most expensive, it’s crucial when time is of the essence. Of course, the tiers might be structured differently to those suggested above, and as time goes on, retailers and their freight providers are coming up with ever-more-inventive ways to differentiate their fulfillment service offerings.
While some imagination will still be required on this journey, most of the hard work has been done in the writing of this article, so you can shut down the imagination overdrive and cruise through this rundown of technology’s impact on warehouses and distribution centers. 1990: A Fine Vintage for Warehouse Operators.
This article by Morai Logistics highlights 5 of the most prominent supply chain trends to be mindful of in 2020. Furthermore, having a more sustainable supply chain means reducing inefficiencies, further reducing costs. On the other hand, several supply chain changes that come next year could be entirely novel. Going Green.
Your sales price minus your production cost is your overall profit or margin; at least, before allowing for further expenses. So far, so good… but what about those further expenses? The real value of knowing your Cost to Serve a given customer is to identify opportunities to increase or recover profit, rather than cut losses.
But more blatantly than ever, container liners – and especially Maersk – are on a collision course with the tech companies that provide digital infrastructure for selling goods. Maersk has unabashedly championed vertical integration for years, advocating an “end-to-end” strategy. No end to end-to-end. Amazon as a carrier.
Like any supply chain strategy, there are advantages and drawbacks to both insourced and outsourced warehouse models. Companies often expect that outsourced warehousing will reduce operating expenses, but in many cases, the opposite is true.
But, of course, with so many cases in such a vastly populated nation, the risk of a new variant emerging to start the whole cycle over again cannot be underestimated. The retail giant’s strategy to achieve its ultimate target of one million drone deliveries per year limits customer eligibility to those who live within 1.6
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