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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.
According to Bloomberg , the coffee supply chain is struggling with constrained supply and increase in prices is inevitable. Traditional, linear supply chains struggle to adapt. This article explores how adaptive supply chains can help businesses thrive.
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. This article is from Asena Denizeri & Anil Gurbuz at Solvoyo and examines the challenges around supply chain planning for 2022 and beyond.
If you’ve ever tried to buy a new car during the chip shortage or waited months for furniture delivery, you’ve experienced firsthand what happens when supply chains break down. Supply chain resilience is your business’s ability to bounce back when things go wrongand in today’s world, things will go wrong.
As I was enjoying the holidays, I had an opportunity to reflect on the year past and what the future holds for supply chains. However, organizations will need to be deliberate in designing supply chains with optionality so it does not become cost prohibitive. Supply Chain Design is essential in tackling these.
Recent supply chain disruptions are forcing organizations to challenge the prevailing wisdom and look for newer approaches to decision making. The simultaneous shocks to demand and supply, and the magnitude of these shocks are not something the world ever experienced.
Given that we are a data-driven (math-loving) company, we wanted to test this range by running some scenarios to see what kind of results companies can expect across a variety of verticals. While businesses differ in complexity and size, for this exercise we extrapolated based on these $7.5Bn baselines. ” – Tweet this.
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.
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.
Looking to real-life examples for inspiration, we can ask, ‘Who does reverse logistics well?’ Reverse logistics, while not being the opposite of forward logistics, is still about products moving backwards in the supply chain. A plan is necessary, possibly based on one of the following strategies.
Sales & Operations Planning (S&OP) as a process has been around since the 1980’s. While the terminology evolved, the underlying thesis of S&OP has stayed the same, i.e., bridge the divide between sales forecasts and operational plans while respecting the budget. Does this mean at some point in time we move on from S&OP?
This post was chosen as a winner of Supply Chain Brief’s MVP Awards. F ulfilling the need for resi lience to change in long – term planning while providing accuracy in short – term planning can improve business performance and reduce stress levels. . W hat’s changed with long – term planning?
Planning a Warehouse Network and Design: Key Factors to Consider. Some Tips for Multi-Warehouse Network Planning. Let’s begin with a look at network planning, because whether your company requires one warehouse or five, your service, efficiency, and costs will be influenced heavily by your choice of location and capacity.
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.
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.
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.
For more than a year, global supply chains have been buffeted by one major disruption after another. Raw materials are in short supply, many manufacturers have temporarily mothballed production lines, transportation costs are rising, and labor is getting tight on our roadways , railways and ocean vessels. The impact?
Ever since COVID hit, supply chain executives have embraced supply chain risk management. Within this discipline, one of the toughest challenges is how to get visibility to problems arising across the extended supply network. Supply Chain Chaos is the New Norm. They call this their “n-tier” supply chain.
This description by a Chief Supply Chain Officer of the state of the supply chain he found in his new role stuck with me. Unlike a supply chain, these steps rely on no disruption to their execution. While there is endless speculation, from my reading two supply chain-specific opportunities intrigued me.
Gartner has released a report detailing how to secure supply chains amidst the coronavirus (COVID-19) outbreak. As global leaders and health officials track the strain and make decisions regarding containment, supply chain leaders need to assess and plan for how the virus will impact global supply chains.
Well, not just for benchmarking, but also for maximum visibility of your supply chain and logistics performance. 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. How hard can that be?” I hear you ask.
With the justification aside, they next had us go through exercises calculating net present value and ROI for a hypothetical capital investment in tooling – as though a shop floor supervisor would do this at any point in the course of their job. The structural designs were far more tolerant of production variation, for example.
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.
If your company’s supply chain survived 2020 and the disruptions of early 2021, it’s safe to say it has passed the resiliency test. Let’s start here: what is supply chain resilience? What is Supply Chain Resilience? 2020 Was A Year Of Supply Chain Disruption. 2020 Was A Year Of Supply Chain Disruption.
This shipment is a great example of collaboration between carriers, ground handling agent, freight forwarder, container manufacturers, airport and customs authorities. ” The post Volga-Dnepr’s Cargo Supermarket Offering Delivers Insulin from Milan to Chicago appeared first on Airfreight Logistics.
Given that we are a data-driven (math-loving) company, we wanted to test this range by running some scenarios to see what kind of results companies can expect across a variety of verticals. While businesses differ in complexity and size, for this exercise we extrapolated based on these $7.5Bn baselines. ” – Tweet this.
Examples include port fires, inclement weather, and labor disputes. The first thing is to consider the discretion exercised by the shipping companies when calculating the congestion surcharge. For example, they may consider a percentage of the cargo or alternatively a percentage of one TEU. b) Demand planning.
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.
Development of a Fast Fashion Supply Chain Vertical Integration Wins in the Fast Fashion Race It’s not called fast fashion for nothing. However, agility can be said to begin at the last stage in the supply chainthe point at which consumers make their purchase in-store or place their orders online.
Part Two offered examples where militaries get it right, and a number of examples where events did not transpire as well as they might. In the Australian example, this ratio has featured in every review of Defence undertaken in the forty years since the ADF was formed. Logistics plans and policies. Logistics organisation.
Medium-term demand planning has always been a tough nut to crack for retailers, suppliers and manufacturers. It’s that duration in between short-term and long-term planning, what we can call ‘medium-term’ demand planning, that has proved one of the thorniest problems in demand forecasting.
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?
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.
The person who gave the presentation I attended offered the example of a speech by late US President John F. As I explain in a YouTube video on this subject, I recently saw a good example of how a BHAG can galvanise a workforce and make a dramatic impact on productivity. For example, their increase in productivity was 217 percent.
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. For example: Compared to selling a product in-store, the cost to deliver that same item as a small parcel can be several times higher. Equipment use.
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?
But as is often the case in the world of supply chain, the ship did not come in as planned. However, in a world where most of the information about a supply chain exists outside of the enterprise, visibility is a fundamental part of managing risk. Streamlining Processes.
For example, companies that have their own in-house vehicle fleet often struggle to deliver products on time. With the advent of e-commerce, increasing globalisation and rationalisation of industries, todays market place demands fast, flexible and efficient supply chains. It must be a joint exercise. Flexibility andScalability.
The Australian Army recently went through this process only recently with Plan Keogh , an activity that addressed personnel and materiel ‘hollowness’ throughout the combat and supporting force. What is less easy to treat is the logistics system which underpins the generation of capability.
Security has been an issue since supply chains began. These and other factors have meant a rethink of supply chain security. Basics of Supply Chain Security. Examples are pre-hiring and background checks. Goods origination, third-party security, foreign customs are examples. Vulnerabilities in the Supply Chain.
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.
Slotting a warehouse product is the same, for example, as placing your umbrella close to your front door at home, so it’s easy to pick it up and run when it’s raining, and you’re late for work. In that type of scenario, the gains in accuracy and speed might be better achieved by slotting products intelligently along the aisles.
If not, you might be surprised at the many ways supply chain benchmarking can be used to understand performance, identify areas for improvement and actually turn those improvements into reality. You don’t have to wait any longer to learn why supply chain benchmarking is increasingly winning advocates in the commercial arena.
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