Remove 2014 Remove Inventory Remove Sourcing Remove Transportation

Insights from Ryder Innovate 2014

Talking Logistics

The value of peer-to-peer learning and networking was evident at last month’s Ryder Innovate conference — “an exclusive gathering of senior leaders in transportation, logistics, and supply chain seeking strategic insight, new ideas, and thought leadership to improve their supply chain and fleet operations.” Greg Forbis, Senior Director, General Merchandise, Inbound Transportation, Walmart Stores. Walmart Supply Chain and Transportation Trends for 2015.

Steel Fabrication and General Manufacturing Tips and Tricks for 2015

Cerasis

has become a major oil and gas producer , which has been to the advantage of fabricators that serve not only drilling and extraction, but also heavy transportation. Still in all most fabricators have seen steel sales rise and customer demands and inventory requirements increase over the past several years.

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26 Best Practices in Lean Warehousing

LeanCor

Let’s face it, most lean purists believe that all transportation and warehousing functions are pure waste. Warehouse strategy is driven by inventory strategy. Quality at the Source. Many people may think the term “lean warehousing” is an oxymoron. Many organizations see logistics functions as a way to gain competitive advantage and bring value to the customer.

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How to boost relationships between shippers and 3PLs

DELMIA Quintiq

The manufacturer would benefit from lower inventory levels, while the 3PL operator could gain a better profit margin for being responsive and reacting “on demand”. Optimal planning also has a profound impact on upstream logistics – the transportation of all the raw materials that are typically on low stock within the factory. They not only provide transportation, but are also responsible for the sorting, pre-manufacturing, warehousing, and so on. Transport & Logistics

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Experts Discuss How to Streamline Global Supply Chain

Supply Chain Opz

Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. Reducing lead times from suppliers can help turn inventory faster, freeing up cash and ultimately satisfying customers. Work with your broker to see if you can get priority on unloading the ship and inland transport.

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Healthcare Logistics

LeanCor

Constructing a total cost model and performing a Greenfield analysis to identify optimal distribution center locations and transportation network allowed the LeanCor engineers to identify $23M total healthcare logistics cost savings for a healthcare product distributor. Increased cost to the customers who were also indirectly incurring the cost of transportation, which was often exaggerated to account for complex and inefficient transportation strategies.

Let the Qs Begin

Supply Chain Shaman

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Do you actively design networks with a focus on form and function of inventory?

Mexico Back in the Supply Chain Spotlight

Talking Logistics

A lot of companies set up operations and sourced from Mexico back in the 90s, then the focus shifted to China and other Asian countries, and now Mexico is back in the spotlight. economic recession made companies decrease inventories, which increased their need for speed to market and shorter cash-to-cash cycles. has a surplus of natural gas; it’s a cheap energy source that helps Mexico continue to be competitive. . It seems like we’ve come full circle with Mexico.

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Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

There are two things Boeing and Airbus have in common, utilization of lean manufacturing system and strategic sourcing concept. However, the overall implementation of strategic sourcing is a bit different between the two companies. The reason why they can do this is that customized products are sold directly to customers so they have the higher profit margin to compensate the higher transportation cost. Managing transportation at this scale is the absolute challenge.

Misnomer

Supply Chain Shaman

The team was organized around the functional silos of source, make and deliver. I believed that we would find a company with the lowest distribution costs (warehousing and transportation), and the lowest manufacturing costs, and this would result in the best overall cost structure. I also believed that this company would have the best inventory and customer service. My favorites are customer service, operating margin, inventory turns, and ROIC.

Supply Chain Management Services

LeanCor

When sourcing supply chain management services, think about the provider’s approach to people and processes. Focus on total logistics cost reduction (transportation, warehousing, and inventory). Here are some general questions to ask when sourcing supply chain management services: Does the 3PL provide the services required? 3 Tips in Choosing Supply Chain Management Services.

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A Case Study in Closed-Loop Operational Management

Talking Logistics

When you look at the potential benefits in inventory savings, freight savings, and on-time fulfillment improvements, it’s not that difficult to build the business case. Therefore, the manageable approach has been to aggregate SKUs into groups or categories, and to optimize orders, inventory, and transportation separately, with planners making manual adjustments afterwards to balance the outcomes.

Reflections on Hard Hats and Safety Shoes…

Supply Chain Shaman

As I work with teams to envision the new tomorrow, I find fewer people know the basic concepts of manufacturing planning–cycle inventories, freeze duration, slush period, bottlenecks and constraints. And, the service supply chain can be redesigned to have less inventory and more uptime. The time to service the equipment would be in hours versus days and the amount of inventory to provide the service would be greatly reduced.

Dreaming of Clouds, Lakes and Streams

Supply Chain Shaman

Yesterday, I spoke at the Eye for Transport conference on the Big Data opportunity in supply chain. Nine out of ten companies are not making progress at the intersection of inventory turns and operating margins. The second company reads market data through syndicated sources. Join us in our research study on Big Data and join us at our Global Summit in Scottsdale, AZ on September 10-11, 2014. It is morning in Chicago. I crave coffee.

Mistaking a Cog for the Whole Machine

LeanCor

Lambert, articulates this very truth on his first page: “In fact, many people using the name supply chain management treat it as a synonym for logistics…” In reality, this confusion demonstrates an outdated view that still puts logistics in a box (or perhaps a shipping container) as a silo’d activity meant to get material transported in or out of the plant. By: Clint McCrystal. link].

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Inbound Logistics

LeanCor

The lean logistics engineering process incorporates several complex factors including volume fluctuations, sourcing changes, and lead, window, and service times to determine transportation modes, sourcing locations, freight consolidation, trailer loads, route combinations, and freight sequences. Transportation costs to support the current network. Develop an inventory strategy based on pull. Develop a transportation strategy based on pull.

Logistics Management

LeanCor

Back in 1962, renowned management guru Pet Drucker once referred to logistics as an untapped source of innovation and opportunity, calling it the economy’s “dark continent.” How well does its model of “every day low pricing” stand in the absence of cross-docking and economies of scale in transportation, keeping costs below those of rival retailers? The waste of obsolete inventory is created when supplies are left unclaimed at the time of their expiration.

The Benefits of Evolved Vendor Managed Inventory Model Led by Web-Based VMI

Cerasis

Editor’s Note: Cerasis is a 3PL focused on transportation management. So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. Each blog post written is distributed into groups that reach the supply chain community as well as professionals in manufacturing, transportation, distribution, and more.

Do No Harm…

Supply Chain Shaman

Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Recently, I spoke to a major European retailer that lost 5% of their grocery revenues to Amazon in the first quarter of 2014. These tools allow us to look at sell, source, make, and deliver together.

3D Printing Set to Streamline the Retail Supply Chain Through Reduced Lead Times and Inventory

BluJay Solutions

The attractiveness of 3D printing for manufacturers and retailers/distributors centers around reducing both lead times and the risks involved in holding inventory. In reality, retailers routinely pass the inventory risk to their suppliers, particularly since the phenomenal growth of multi-channel retailing, with direct dispatch (or drop ship) suppliers bulking up retailers’ online offerings without requiring a financial commitment or warehousing space.

Handfield’s Supply Chain Analytics Predictions for 2014

Supply Chain View from the Field

As 2013 comes to a close, here are some of my thoughts regarding the supply chain trends we are likely to see emerge in 2014. Such providers understand domestic transportation issues, and can plan to develop long-term solutions to complex local distribution challenges. Another major source of risk is the unreliability of global logistics channels, especially the challenges associated with ocean freight lines, which are becoming increasing unreliable.

The Origins of Category Management

Supply Chain View from the Field

I was involved in inventory control area on what they used to call “residual parts”, which were leftover parts that you ended up trying to sell into the service parts organization. This impacted transportation costs, resins, chemical feedstocks, and a whole bunch of other areas. They would bid and source only part at a time! I was fortunately enough to have a fascinating discussion with Steve Zimmer, who currently leads a team at US Car.

Impact of Macro Trends on Supply Chains: Diversification of Sales Channels

Supply Chain @ MIT

At the 2013 MIT Center for Transportation & Logistics Annual Crossroads conference*, UPS’s Randy Strang described this evolution from single-channel (traditional brick & mortar) to multi-channel (siloed operations) to cross-channel (where some integration of inventory occurs) and finally to omni-channel (where the consumer experience is a blend of all channels). The inventory in the stores is now fair game for fulfillment within other channels. Hard sell.

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Build Resilience into Your Supply Chain

CH Robinson Transportfolio

Food and beverage companies must be able to trace problems back to their source in multi-tiered supply networks. Mapping the supply chains can identify where the chokepoints are, and whether they are related to suppliers, inventory, transportation, or technology. Where is inventory located? What transportation alternatives are there that could keep product flowing? It’s not if you’ll run into trouble, but when. That’s what some motorcyclists say.

3D Printing: Supply Chain Game Changer or New Risk for LSPs?

BluJay Solutions

As we look ahead to 2014 and the many predictions for the logistics industry, it’s interesting to look back to the predictions of previous years and consider which are close to becoming a reality. So is its popularity likely to burgeon in 2014 and, importantly, will it render some of the staple services currently provided by logistics service providers (LSPs) redundant? . .

Supply Chain Risk Blog Series#4: Ensuring Continuity During a Disruption

BluJay Solutions

Now our attentions turn to continuity - more specifically ensuring supply chains remain in motion when factors outside of your control impact on the multimodal transportation process, creating potential delays. Stay up to date on industry software tools such as Freight Forwarding (Software) , Logistics (Software) , Supply Chain (software) , Transport Management (Software) , Warehousing Management (Software) , Compliance (Software) and Visibility (Software).

From Malls to Click-And-Collect: How Today’s Pace of Change Is Impacting Real Estate

Tompkins Blog

Source: Kantar Retail Analysis. As we predicted in 2011, the number of store closings to occur in 2014 will hit record numbers. What is worse than the 2014 store closings will be the bankruptcies in 2015. Businesses are not grasping the changes in the marketplace, and holiday 2014 will take its toll in 2015. There have been a variety of factors that have contributed to this: Real transportation, operations, real estate, inventory, and capital costs must be utilized.

Secret Confessions of a Supply Chain Junkie

Supply Chain Nation

We all talk about markdown optimization and the importance of depleting inventory with the right markdown strategy to maximize profits. Retailers need to get smarter about their sourcing and shipping, ensuring that the consumer orders they fulfill are as profitable as they can be. You consider the weight of each child along with other transportation considerations where you can’t ship, er transport, certain characteristics close to one another.

Solving the Emerging Market Packaging Puzzle

Supply Chain @ MIT

Packaging shields products from damage and theft, differentiates the brand, and is a source of information for consumers. It’s a complex question, especially when each component cost is taken into account, such as the cost of handling outer packs at the production plant, distribution centers and retail stores, inner pack handling at DCs, transportation costs, and the cost of opening outer or inner packs at DCs and retail outlets.

The War Against Returns – Is the Retail Supply Chain Winning?

BluJay Solutions

Source: BBC News, Jan 2013 , Retail Technology, Sept 2013. Research has proven that reducing returns by 1% increases net profits by 1% (Source: Retail Technology, September 2013 ), proving the importance of this area to the bottom line. Returns complicate logistics processes, disrupt inventory management, make revenue forecasting difficult and eat into profit margins.

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Unlocking POS Power

Supply Chain @ MIT

Of particular interest was finding out how POS data can be used to adjust production planning in order to reduce both production and inventory costs while maintaining high levels of service. To illustrate the value of this data source, the researchers focused on the potential for reducing two key manufacturing costs: change over and inventory holding costs. The program minimized total relevant costs subject to capacity and inventory target constraints.

Does Your Business Suffer From any of These Five Profit-Killing Confusions

EFT

However, this can go too far, and lead to too much complexity not only in the customer decision making process, but also in the entire supply chain - from purchasing to manufacturing those products, and then selling, transporting and storing them down the supply chain in the channels. Customers look at all these extra inventory and start asking for pricing discounts; they believe that the company is not able to sell as much as they are buying or producing.

Transforming Tribes

EFT

This isolationist approach takes no account of effective inventory control, asset capacity management, mark down risk, responsiveness or availability. Companies succeed or fail depending on how well they transform to new demands in the areas of areas of price, quality, sourcing, ethics, service and agility. Image: Column 3PL/Logistics Freight Transport General Supply Chain Technology/IT Retail/CPG/Fashion Many retail organisations are essentially tribal.

Resilient and Cost Efficient Supply Chains

Operations and Supply Chain Management

Industry News – May 7, 2014. The most obvious steps to protect against serious supply chain disruptions – increasing inventory, adding capacity at different sites, using multiple suppliers – “undermine efforts to improve supply chain efficiency,” Northwestern University Kellogg School of Management Professor Sunil Chopra and City University of London Cass Business School Professor ManMohan S. Sodhi wrote for the magazine’s Spring 2014 issue.

Planning and Execution – Merge Ahead

Supply Chain Nation

The most recent advancement in road navigation is coming from the use of crowd-sourcing and machine learning. Google crowd-sources traffic congestion data by monitoring speed of thousands of individual smartphones using Google Maps on the roads [1]. Crowd-sourcing also helps keep maps up-to-date. In today’s digitized and connected world, we have become ever more demanding and fickle consumers.