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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.
A plan is necessary, possibly based on one of the following strategies. Hidden Opportunities for Supply Chain Cost Reductions Of course hidden costs, if you can find them, mean hidden opportunities. Reverse Logistics Strategy 1: Don’t do it! Clearly, successful reverse logistics cannot be left to luck.
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.
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.
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. Amazingly, many companies have suffered after outsourcing decisions were made at an operational level, without due regard to the boards supply chain strategy.
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.
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.
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?
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.
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. Again, these are changes that can add to your cost-to-serve, and, during your transition, you might not have had time to look for ways to reduce expenditure. Rework – due to errors.
Government regulations like the Sarbanes-Oxley Act of 2002 (SOX) put additional strain on companies to maintain stringent data and financial controls, and often include provisions on how data is maintained by outside vendors and service providers. Type 1 vs. Type 2: What’s the Difference?
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.
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
TMS Strategy & Building the Business Case. It begins with a strategy project that documents the current state process, information, and data flows. If both the strategy and selection projects succeed, then there is a greater chance that a TMS can get implemented on-time and within budget, but not necessarily.
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.
A plan is necessary, possibly based on one of the following strategies. Reverse Logistics Strategy 1: Don’t do it! IT vendor Dell, for example, handles requests for returns via its support organisation. Reverse Logistics Strategy 2: Make it Painless. Reverse Logistics Strategy 3: Make it Profitable.
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. What Are Your Freight Benchmarking Options?
However, in reality most strategic planning exercises neither embed foresight, nor create responsive networks. This will help reduce safety stocks and hence costs, improve customer service and make the Logistics network more adaptive. The periodicity may range from six months to five years.
Peter Lukszys, University of Wisconsin-Madison (UW-Madison): In terms of different logistics applications, we see a lot of interest in humanitarian aid logistics and the impact of logistics strategies on climate change. But the economic downturn forced companies to pinch pennies and reduce costs. It is also an exercise in trade-offs.
Raw materials and products now take myriad paths from sourcing to fulfillment, and customers have little patience for delays, regardless of the challenges vendors face in getting product to them. . As a result, supply chain optimization is no longer a nice-to-have – it’s table stakes for survival. Deep logistics knowledge and relationships.
Many large product/equipment vendors make more money through warranties and repair, especially when these happen onsite, so there could be some resistance there. This helped in reducing the failure rates, maintenance cost and loss in production time. Instance Consolidation Strategy. Until then, it wont appear on the entry.
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.
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. However, you must exercise caution to make sure you do not damage your vendor-shipper relationship.
While COVID did see some modal shifts of everything from wheat to Peloton exercise bikes, there are certainly products that are less likely candidates for shifts. Blog " * " indicates required fields Email * Name This field is for validation purposes and should be left unchanged.
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.
He highlighted the potential telematics offered in not only sharing information between the customer, the vehicle and the OEM, but also vendors involved in post-production accessorisation and value-added services. It is an academic exercise to speculate …but there are some big dollars at stake here.”.
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