One of the keys to achieving agile response to fast-changing markets lies upstream of the organisation in the quality of supplier relationships.Many companies have not recognised that competitive advantage that can be derived from closer relationships with key suppliers. Instead there is often an arms- length, even adversarial approach to Read more…
There are actually 2 decoupling points in any supply chain 1. ‘Material’ decoupling point: Strategic inventory is held in as generic a form as possible. This point ideally should lie as far downstream in the supply chain and as close to the final market place as possible. 2. ‘Information’ decoupling Read more…
“Lean thinking” embraces the elimination of waste in its various forms. Activities that consume resources but generate no redeeming value in the eyes of customers are wastes that must be eliminated in the “lean” paradigm. Agility, on the other hand, emphasizes flexible, timely action in response to rapidly changing demand environments. Though Read more…
1. Market Sensitive. By market sensitive we mean that the supply chain is capable of reading and responding to real demand. Most organisations are forecast-driven rather than demand-driven. 2. Mastered Virtual supply chain. The use of information technology to share data between buyers and suppliers is, in effect, creating an information Read more…
One of the hot topics we have been coming across nowadays is the resilience of supply chains- specifically Pharma and Automobiles supply chains. Intertwined in these discussions are 2 words which are (incorrectly) being used almost interchangeably – Lean and Agile. If you have a hammer, everything looks like a Read more…
Who should read thisIf you have wondered why supply chain partners don’t seem to want to do what is in everyone’s best interest, even when it’s obvious what’s best for the supply chain. Symptoms faced if you have Misaligned IncentivesExcess inventory,Stock outs,Incorrect forecasts,Inadequate sales effort andPoor customer service Wrong Assumptions Read more…
Sustainable competitive advantage no longer arises exclusively from position, scale, and first-order capabilities in producing or delivering an offering. Instead of being really good at doing some particular thing, companies must be really good at learning how to do new things. Those that thrive are quick to read and act Read more…
Black Swan events are almost impossible to predict. Instead of coming under the illusion that we can anticipate the future, risk management should try to reduce the impact of the threats we don’t understand. To change the way we think about risk, we must avoid making six mistakes. You CANNOT Read more…
What are the traps of managing supply chain inventories ? Manufacturers have been concentrating on quality of incoming materials and outgoing products, but they haven’t been paying as much attention to the costs associated with transporting and storing them. Some pointers from Lee & Billington are more valid today than Read more…
Last year companies were grappling with higher e-commerce order volumes, an uncertain global tariff environment, a tough political environment and stiff competition for both labour and warehousing space. Immediate reactions included reshoring manufacturing operations, seeking out new, non-Chinese sources of supply, transforming physical stores into full-blown delivery hubs and investing Read more…