There are four basic types of supply chain drivers: constraints, variability, velocity, and life cycle. The best teams design their supply chains based on these factors. There are five basic types of constraints: material, manufacturing, transportation, financially imposed, or regulatory constraints. The bottlenecks shift depending on volume and mix. Skilled Read more…
Companies are not aligned on the strategy cross-functionally. It is impossible to drive great tactical outcomes if you are unclear on the goal. If the goal is to meet the budget objectives, the organization will never maximize the opportunity within the value chain. While companies almost unanimously state the supply chains Read more…
Conventional wisdom leads many managers to focus primarily on operating their business as efficiently as possible. They believe they can be most successful if they strive for high product volume, top product standardisation and a continuous process. However, turbulent and misunderstood demand left them with excess inventory.1. Downstream demand is Read more…
It is popular these days to talk about assurance of supply. More often than not, manufacturers rely on components and services from all around the world for the continuing smooth supply of their products and services. A company’s reputation hangs on its reliable delivery to customers, but assuring this ongoing Read more…
In Ironman Triathlon there are 3 events – Swimming, Cycling and Running. Total performance judged the winner, not by a single score in a single event. Because the athlete must do well in all events, he has little opportunity to perfect any one event. A contender trying to improve performance Read more…
The definition may help you choose the right questions next time you ask a prospective candidate. Or it may help you understand which attribute you can make even stronger. Good inventory manager means being a good planner, coordinator and controller. All rolled into 1!
The idea that a company that practices pull supply chain methodologies will suddenly enjoy massive inventory savings and replenishment nirvana can be as flawed as the belief that the company that practises push supply chain methodologies will maximise sales and freshness in stores. If you only use supply-side/ push methodology, your Read more…
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…