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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?
Looking to real-life examples for inspiration, we can ask, ‘Who does reverse logistics well?’ For regulators and the public, reverse logistics may be judged by how safe and how green the process is, for example, recycling products instead of throwing them into a landfill. Reverse Logistics Strategy 1: Don’t do it!
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.
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.
The price you pay your vendors for their products is a significant factor in your company’s ability to compete in its market. Here, we’re talking about all your vendors. Purchase order cycle time is a KPI that measures the elapsed time between raising a requisition request and the transmission of the purchase order to the vendor.
If you’re a decision-maker with accountability for your organisation’s entire supply chain, and you’re just starting to think about outsourcing, perhaps to reduce costs or improve service, this post should prove well worth the few minutes it will take you to read it. What Can You Outsource, and What Should You Outsource?
For example, companies that have their own in-house vehicle fleet often struggle to deliver products on time. Reduction in asset capital.Warehouses and vehicles are expensive to purchase or lease and can tieupmillions of dollars that could otherwise be invested in the core business of the firm. But what about cost of service?
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. 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. Supplier and vendor pricing.
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. In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies.
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.
For example, drivers are expected to arrive on time, maintain docking schedules, and avoid dead time. Furthermore, such methodology can be applied to vendor relationships. If a vendor fails to deliver product as specified, the vendor may be advised of how future violations will affect contractual obligations.
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.
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?
5 Good Supply Chain Visibility Strategies. Once you’ve come up with a few ideas, meet with internal departments, Tier I vendors, logistics providers, and other stakeholders to discuss these problem areas. Getting a handle on supply chain visibility is more than just a buzzword or total quality exercise,” East West concludes. “It’s
Transportation spending is a perennial target of budget-cuttingexercises, and a large, multi-faceted cost center for many companies; some may spend three to six percent of their materials costs on transportation. The bundling of production and transportation costs into vendor contracts is one reason behind this difficulty.
As product flows rapidly shifted and hard baked assumptions about lead times and sourcing locations were put to test, users across many organizations bypassed their planning systems and turned to excel sheets, internal data science teams or non-traditional supply chain vendors who could deliver AI based solutions at a faster turn.
Looking to real-life examples for inspiration, we can ask, ‘Who does reverse logistics well?’ For regulators and the public, reverse logistics may be judged by how safe and how green the process is, for example, recycling products instead of throwing them into a landfill. Reverse Logistics Strategy 1: Don’t do it!
London, for example, accounts for 32 % of the UK’s national GDP produced by only 23 % of the population. Moving thousands of people and products effectively from A to B on a daily basis is an incredibly complex exercise, both financially and environmentally. The challenge of being too big to fail. Customer-centric delivery solutions.
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. Would LLamasoft start competing more directly with other best-of-breed supply chain planning vendors?
How to Create an Effective Inbound Freight Management Strategy To ensure that your inbound freight systems are seamless and efficient, you will have to pour time and energy into implementing the new processes into your business. Exercise patience when asking freight providers to take on new lanes. Communicate in a timely manner.
However based on observations made in the course of our consulting work, many organisations perceive it as a purely remedial or punitive exercise. For example, companies often make the mistake of ramping up performance evaluation only when one of their vendors begins to let them down. Why is this a mistake?
At Logistics Bureau, we want to help you with that, so we’re publishing this brief guide to help you if you haven’t already included freight benchmarking in your management strategies or want to benchmark more effectively than you are now. The insights you receive will help you decide which carriers and trade lanes to use and when.
One person’s supply chain career might be focused on the specific area of freight forwarding, for example, whereas another person’s might encompass end-to-end operational management from raw materials management to customer invoicing. Inventory (inventory specialist, vendor-managed inventory/replenishment specialist).
These responsibilities extend across functions and when properly exercised, comprise supply, demand, distribution, production, purchasing and capacity planning. Where necessary, this includes vendors and supply chain partners such as 3PL logistics providers. In order to do this, you’ll need to establish a set of KPIs and metrics.
For example, as online sales reach a record high, B2C service provider Jet.com uses some creative logistics concepts to bring value to customers. For example, understanding collaboration and communication is as important as understanding modeling and technology. But hard skills must be coupled with soft skills.
Gopi Krishnan - As regards operator driven maintenance, I see examples of the self-service concept here. Many large product/equipment vendors make more money through warranties and repair, especially when these happen onsite, so there could be some resistance there. Instance Consolidation Strategy. And why not? Follow us on.
These information have now become essential in channelizing the Maintenance programs and in some cases cut down on unwanted routine checks and maintenance operations thereby helping in a leaner Asset management functions.
Getting this right to maximize your transportation strategy is a balancing act—regardless of the mode or modes of shipping. The good news for businesses seeking innovations is that technological change has a long history of reducing production costs and bringing improved products to the marketplace. Inside and outside.
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 In 2014, a survey by Tompkins Consortium delivered a shocking revelation.
One example is the port of Los Angeles, which has worked with GE Transportation and last year introduced a cloud-based port optimiser that provides real-time information on cargo through a single portal that is made available to all the partners involved in the processing of it. Take service parts as an example.
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