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…
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…
The most readily identifiable component of inventory-driven costs is the traditional inventory cost item, usually defined as the “holding cost of inventory,” which covers both the capital cost of money tied up in inventory and the physical costs of having inventory (warehouse space costs, storage taxes, insurance, rework, breakage, spoilage). Read more…
As the supply chain management field has broadened and shifted over time, and as the term has been coopted and redefined by various interests, many views of supply-chain management have emerged. Some are detailed and operational; many focus on information technology. Executives are often uncertain about what falls within the Read more…
Today, many consumer goods companies have been forced to accommodate smaller markets, as these niches often provide the only path to growth and escape from heavy price competition. However newly launched products suffer from notoriously high failure rates! Surprisingly new products fail not because of technical shortcomings but because they Read more…
Research showing that while people may be quite aware that rare events can occur, and may even be able to imagine several examples, they consistently underestimate the probability of at least one such event (including the ones they didn’t imagine) occurring. In other words, we tend to underestimate the size Read more…