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In this article I will outline, firstly, the reasons why organisations outsource logistics activities, and secondly, what the key drivers are for outsourcing success. It must be a joint exercise. In my next article I will be covering the different types of outsourcing relationships and issues to be aware of when entering contracts.
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. Now you know what your customers genuinely expect from your outbound and reverse supply chain, so it’s time to undertake a gap analysis.
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. Outbound Logistics: Keeping Customers Satisfied.
Along with the design of supply chain strategy, the design of the supply chain itself, especially the part dealing with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses. . SEE ALSO: Supply Chain Strategy Development. . Supply Chain Network Design. Mini Case Study: Whirlpool.
Outbound transportation. When first published, this article explained the CTS concept, outlined the benefits of analysing cost-to-serve, and provided some brief examples of successful CTS projects. Efficient order terms. Sales organisation costs. Marketing costs. Ordering and cash collection. Picking and packing. Returns management.
This article was first published in the July / August 2018 issue of MHD Supply Chain Solutions. In addition, returns typically cost more to handle than outbound shipments – 3 to 4 times more for traditional retail companies, for example. It would be tempting to think of reverse logistics as forward logistics done backwards.
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.
Selecting the right 3PL is no simple exercise, yet it’s one that’s all too often subject to shortcuts, a dearth of detail, and overly compressed timelines. In many cases, we need only look at the very first steps in the partnering process to spot the first signs of rot. If Only There Were More Good Tenders.
The Path to Cost Reduction: Following a SCOR supply chain benchmarking exercise, AGCO decided to approach its cost reduction and efficiency goals by blending new technology—in the form of a globally integrated transport management system (TMS)—with a commitment to form a partnership with a suitably capable 3PL provider. Procurement analysis.
In this article, outsourcing will refer specifically to transport and warehousing functions. Many enterprises have taken heed, and determined that inbound and outbound transport and warehousing are consequential processes of their business rather than fundamental or core processes. It must be a joint exercise. This is a mistake.
Furthermore, many shippers who rely on inbound and outbound transportation to bring in raw materials and distribute their finished goods may not realize the multitude of ways that transportation carriers can achieve “scale.”. How economies of scale affect that balancing act is the subject of this article. Inside and outside.
And a final look at the Outbound Tender Rejection Index shows trucking capacity is indeed tight as we head into Jan: Note: Rejections are double the ’18 and ’19 values. Yes, the pictures tell a story… and what a story it was. Last week’s Federal Reserve report noted additional increases in production.
Supply Chain Network Design Along with the design of supply chain strategy, the design of the supply chain itself, especially the part dealing with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses. Select one strategic logistics partner and build a long-term, close relationship.
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