By Lora Cecere
It is fall. The hot and humid days are giving way to cool and crisp weather. Today, as I type this blog post, the rain is softly falling on my window sill. The wet streets below signal a shift in seasons. The seasonal rhythms link the threads of our life. As fall becomes winter, supply chain leaders are planning their budgets and building strategies for 2017. With this in mind, in this blog, I make an argument that we, as supply chain leaders, have screwed up direct material procurement.… READ MORE
United Parcel Service (UPS) is making plans to adopt innovations in the 3D printing marketplace. The US shipping company announced last week that it would expand its 3D printing services to Asia and Europe “in a bid to fully embrace and get ahead of a trend that threatens to eat away a small but lucrative part of its business,” Nick Carey writes for Reuters.
In addition to its delivery services, UPS offers supply chain solutions and touts itself as a global leader in logistics.… READ MORE
Digital supply chains may become known as the great levelers. In this era, small businesses that lack the capital of their larger competitors can use information and digital supply chains to make up the difference. For example, online property rental marketplace Airbnb does not own any hotels, yet it is responsible for millions of overnight stays. The Uber online transportation network does not own any taxis, but the company has delivered many millions of trips.
Although the business models of Airbnb and Uber are new, leveraging the assets and inventory of others is an old business strategy.… READ MORE
Despite the added control offered by DRP and centralized “push” channel planning, there are often occasions when distribution centers possess insufficient stock to fill the inventory needs of the distribution network. Such an event could occur because of the normal lag time in channel information and material flows or because of unplanned demand or supplier stock out. In responding to such a problem, inventory managers often use a technique called “fair share.” The basis of this technique is to provide branch locations with equal run-out replenishment resupply that should be sufficient to prevent stock out during the replenishment lead time until supplier receipts arrive at the deployment warehouse.… READ MORE
This is the second in a series of posts about operations and support for complex systems (or systems of systems), such as an electrical grid, railroad line, or assembly line. Such systems are nearly ubiquitous in business today, but we rarely consider their supply chain requirements until there is a problem.
Remember from our last post that operations and support (O&S) activities can account for as much as 80 percent of a system’s total life cycle costs. The question we address in this post is, “How can we most effectively manage a complex system’s O&S costs and its operational performance?”
To find the answer, we need to start with a systems-level perspective.… READ MORE
By Sachin Arora
“The measure of a person’s strength is not his muscular power or strength, but it is his flexibility and adaptability.” Same holds true for businesses and supply chains. Hanjin Shipping Co. filing for bankruptcy last month is a big news for logistics world. Hanjin Shipping the seventh largest shipping firm in world, and largest shipping firm South Korea. So how does sinking of titanic of logistic world impact the sea of global shipping and supply chain and send Tsunami waves to global conglomerates??… READ MORE
By Hellen Oti-Yeboah
Changing market conditions makes demand planning in the bioscience and pharmaceutical industries highly critical. More accurate demand planning and forecasting is required for achieving overall business objectives in the areas of growth and operational efficiency.
The DelawareBio Supply Chain Summit on Wednesday, September 21, 2016, features round-table discussions on the scope of the Pharmaceutical and Bioscience industry. One of the event highlights is a roundtable discussion on demand planning led by Janice Gullo, Supply Chain Consultant for Lean Six for SCM Consulting, features Arkieva COO and demand planning expert while looking at demand planning topics.… READ MORE
The title of this week’s Supply Chain Management Now isn’t from a new Hollywood thriller; this situation is real, and it’s serious. One of the world’s biggest shipping companies, South Korea-based Hanjin Shipping, filed for bankruptcy earlier this month, leaving as much as $14 billion worth of cargo floating and manufacturers uncertain, according to The Wall Street Journal.
Since Hanjin filed for bankruptcy, “dozens of ships carrying more than half a million cargo containers have been denied access to ports around the world because of uncertainty about who would pay docking fees, container-storage and unloading bills,” Costas Paris and Erica E.… READ MORE
Given today’s rapidly evolving supply chain environment, APICS Research has recognized a need to define the term “digital supply chain.” It has become a challenge, since few people agree on how to summarize the integration of so many different technologies, activities, and outputs. Digital supply chain must define the future of digital collaboration, risk management, supply chain flows, and so on. In this series of blog posts I will highlight some relevant topics in the developing area of digital supply chain.… READ MORE
By Hellen Oti-Yeboah
When it comes to inventory optimization, companies often have to play a delicate balancing game to ensure that they have optimal levels of inventory. If your forecast numbers are too high, you run the risk of holding costly excess inventory and reducing available cash on hand. If your forecast numbers are too low on the contrary, you may be ridden with a loss in possible sales and disgruntled customers due to a stock out. Making inventory optimization, arguably one of the most difficult tasks for any manufacturing business.… READ MORE
By Jon Schreibfeder
Recently our articles have concentrated on inventory management. That is, the planning process: making sure you have the right quantity, of the right item, in the right location, at the right time. Successful inventory management leads you to reorder products when your net available quantity of an item (i.e., ON-HAND – COMMITTED + ON REPLENISHMENT ORDER) is less than or equal to its order point (i.e., ANTICIPATED LEAD TIME DEMAND + SAFETY STOCK). But what if your available stock quantities are not accurate? … READ MORE
By Lora Cecere
The Supply Chain Insights Global Summit is over, but we hope that the energy to define Supply Chain 2030 is just beginning. Our goal is to build a guiding coalition to think differently to improve outcomes. Today, only 12% of supply chain teams are driving improvement, performing better than their competitors and driving value (as determined by Price to Tangible Book Value). As companies prepare for Supply Chain 2030, we think that it is time to rethink the basics.… READ MORE