Today, well-intended supply chain professionals are structurally encased in vertically focused functional silos. In the design of the IT initiatives, many companies don’t spend enough time on metrics and reward systems. Continually they should ask themselves, “If we are successful, what does work look like? How do we reward the right Read more…
From the customer’s point of view, benefits result from increased efficiency, reliability, flexibility and innovation, and these are the underlying principles of SCM. These benefits manifest as the 4 main supply chain strategies for companies: 1. Rationalisation is excellence in managing the operating costs through SCM to achieve cost leadership Read more…
Transportation used to be about minimising the cost of routing and scheduling; Logistics used to be about finding the least-cost network design; Purchasing used to be about minimising purchased costs; Manufacturing used to be about scheduling production to achieve the greatest fill rates at the least cost; and Customer service used to be about Read more…
1. If your product market life is long (think Consumer goods business / grocery business / Core / Never out of stock Items in fashion business) then you can save 10% of your costs by implementing a system that replenishes goods based on actual consumption rather than on projected consumption. 2. Read more…
There are 2 ways to answer the above question: Option #1 1. The growing length of supply chains and the increased number of parties in the transaction creates the perfect recipe for a bullwhip effect: the amplification of changes in order volume as one progresses from the origin of the Read more…
How can startups aim to compete with international corporations where many larger, established Indian companies are still dipping their toes? Many large companies have become ‘Vetocracy’. The system of checks and balances, replicated at every level of functioning, ensures that someone, somewhere can always block a positive action. Companies become Read more…
Even though the last few years have witnessed decrease in world trade volume, Better Supply chain is a need that will only grow with time. An open world of fast-moving markets and technological change is scary. One answer is to close it down. Populists would like us to believe we Read more…
Supply chain management is great, if the Supply chain strategy is clear! Supply Chain Management Vs. Supply Chain Strategy While supply chain management is used to describe internal improvements to existing processes within the context of current, actual situations and constraints, the supply chain strategy realises the intent to create Read more…
Should supply chains be built for Efficiency or for Responsiveness? Leanness / Efficiency is currently the leading approach to supply chain management. The main principle of lean supply chains is elimination of any part of the system that does not bring value (it is wasting)– costly inventory, excessive capacities, duplicate Read more…
During season time, retailers rely on 2 solutions to lure shoppers, generate sales and lift their own holiday spirits. We believe retailers should look at BOTH of the below options and not just 1 of them for maximising their sales. 1. Assortment-planning solutions. By analyzing sales targets, shelf space and Read more…