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Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. The technology group wanted to implement SAP IBP, and the business leaders were resistant. So I asked, “Why would you want to automate a process when the groups are not aligned?”

Why Logistics and Transportation Should Digitize

3rdwave

Digitization is suddenly so important because the current technology supports the capturing of phenomenal amounts of raw data from an unlimited number of sources and the converting of that data into meaningful, contextual, and actionable information – quickly and at low cost. Logistics is a highly procedural function with clearly defined responsibilities and performance metrics. 5 Reasons Logistics and Transportation Should Digitize. What is Digitization?

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Why Logistics and Transportation Should Digitize

3rdwave

Digitization is suddenly so important because the current technology supports the capturing of phenomenal amounts of raw data from an unlimited number of sources and the converting of that data into meaningful, contextual, and actionable information – quickly and at low cost. Logistics is a highly procedural function with clearly defined responsibilities and performance metrics. 5 Reasons Logistics and Transportation Should Digitize. What is Digitization?

Wanted: Supply Chain Architects!

Supply Chain Shaman

Warehouse Management and Transportation Management were in their infancy. Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. The focus in supply chain groups was not on how to design the operations so that they were more effective; instead it was about the use of best practices to maximize the value of what we had. Stage 2: All about Transportation.

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

The key difference between the two can perhaps be explained in the following example: A 3PL provider working with a paint manufacturer may package and store products as well as transport them to retailers and/or customers. Transport.

Manufacturing Gains From Machine Learning

IQMS

Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Technology and Innovation for the Future of Production: Accelerating Value Creation (38 pp., Source: Digital Factories 2020: Shaping the future of manufacturing (48 pp., Machine learning is predicted to reduce costs related to transport and warehousing and supply chain administration by 5 to 10% and 25 to 40%, respectively.

6 Transportation Management Trends for 2016

Cerasis

2016 will be a defining year for the logistics industry , and transportation management practices must adapt to these changes. Some of these transportation management trends reflect real worries for the logistics industry. However, logistics providers and shippers are starting to understand how to best combat each of these problems through the application of transportation management technologies. Transportation Management Trends transportation management trends

The Case for Less Silos, More Intelligence in Supply Chain Management

Talking Logistics

Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. Logistics, Manufacturing, Procurement, Sales and Marketing — these functional groups, for the most part, continue to operate independently from each other, each driven by their own objectives and metrics. Break down your supply chain functional silos. This advice is not new.

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Achieving Transportation Excellence by Focusing on Daily Improvement

Talking Logistics

Whether it’s to reduce transportation costs, centralize their transportation management, or deliver better service to customers, both parties identify a desired outcome and work collaboratively to deliver on those promises. This strategic planning process provides clear goals and identifies the strategic choices to achieve them – a model for delivering alignment, transparency, and metrics that truly define success. OGSM has four components: Source: Transplace.

Using Managed Analytics to Build a Next-Generation Supply Chain

Talking Logistics

The advent of transportation management systems (TMS) in the 1990s introduced near-infinite metrics and data points into the supply chain yet brought with it more questions than answers: How do we centralize the data? In its simplest form, managed analytics combines transportation data, along with several other databases, into a central data warehouse and applies a sophisticated set of analytical tools and algorithms. How well is my transportation routing guide performance?

This Week in Logistics News (January 7-11, 2019)

Talking Logistics

Robinson, Descartes Systems Group, and MercuryGate. Hunt Transport acquires home delivery firm for $100M (CCJ) Key By Amazon adds garage and business delivery, new locks and Ring compatibility (TechCrunch) Walmart taps Udelv for latest driverless car tests to deliver groceries (CNBC) Autonomous trucking startup TuSimple is taking 3 to 5 commercial trips a day (TechCrunch) Why Your Ice Cream Will Ride in a Self-Driving Car Before You Do (WSJ – sub.

BASF: A Story of a Supply Chain Leader

Supply Chain Shaman

He is an industrial engineer with a diploma in transportation and logistics from the University of Applied Sciences in Bremerhaven. Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. The composite of metrics includes growth, operating margin, inventory turns and Return on Invested Capital.)

Tell Me Why

Supply Chain Shaman

Amazon’s because of their breath in physical and digital supply chain, innovation in material handling, transportation, etc and their vision completely disrupting the industry. Traditionally, the focus has been on building efficient organizational silos for make, source or deliver. As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. It is a study of peer groups. They do not have a peer group for comparison.

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

Groups throw-out concepts. While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. The focus is on functional metrics, but are unable to get to overall supply chain metrics. Groups rally around the concept of real-time. However, to use these data sources, we must break paradigms and focus on the use of non-relational techniques. We finished dinner.

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Sorry, I’m Not Sure: Supply Chain and Logistics Predictions for 2018

Talking Logistics

Source: Evan, Flikr. “I SophiaTX Open Source Platform to Integrate SAP, Blockchain. If they actually follow through on their promise and oil prices continue to rise next year, how will transportation, inventory, and sourcing policy decisions change in response? And since so many aspects of supply chain management affect both customer experience and financial metrics, supply chain innovation efforts need to take these factors into consideration too.

Top 25 3PL warehousing companies in 2020 (by revenue)

6 River Systems

Many metrics can be used to determine the top 3PL warehousing companies, such as company revenue, the number of warehouses, total warehouse square footage , etc. Revenue data is sourced from the companies’ websites and market research platforms such as Macrotrends. Møller Mærsk Group.

The Trends Shaping Supply Chain and Logistics: Takeaways from Descartes Evolution 2017

Talking Logistics

getting buy-in from drivers and other stakeholders) and implementing appropriate metrics to measure and drive performance.). Another dimension of business intelligence is mashing together different data sources, such as weather, traffic, and trade data to generate new insights, which is part of the reason why Descartes acquired Datamyne this past December. (As Ports, Airports and Global Infrastructure Group, also presented at the Executive Forum.

Takeaways from Descartes Evolution 2019

Talking Logistics

One of my first clients back in 1999 was Descartes Systems Group. Source: Google. This was not a trivial transition because the software industry, until relatively recently, was long fixated on measuring its health and success by new license revenue (sales of products) instead of customer-centric metrics, such as realization of ROI and payback objectives. Descartes Systems Group Revenue 2006-2018 (Source: macrotrends).

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Source ID. Source ID. Content Summary: Personal Mover Transports Employees around BMW Plant. At automaker BMW Group, for instance, plant employees can walk up to seven miles per day. To eliminate some of this traveling BMW’s R&D group developed a Personal Mover solution—a one-person means of transport for covering short distances within an operating site. Source ID. Source ID. Source ID. Source ID. Source ID.

Food Trends That Could Have an Impact in 2021

Zipline Logistics

Gen Z will emerge as the largest consumer group, commanding “$29 to $143 billion” in direct spending, according to an article in Forbes. Those cutting-edge technologies are enabling companies to create personalized nutrition plans for users based on biological metrics.

Taking the Hill

Supply Chain Shaman

This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. Financial ratios allow us to analyze performance across the peer group (large against small companies) and across currencies. We also look for companies that have out-performed their peer groups. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters.

2020 Requires Big Wings and Feet

Supply Chain Shaman

The discussions are with groups of executives—often ex-management consultants. No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance. This share group is now in its sixth year.

Building the Business Case for Supply Chain Risk Management

Cerasis

On the other hand, only 8 percent of companies that were rated by their executives as less than significantly above average on supply chain-related metrics have the same performance. In 2017, the top three risks for supply chain management were categorized into three groups: War, terrorism and other geopolitical issues Natural disasters affecting supplier facilities Data security/IT incidents.

Announcing the Supply Chain Index

Supply Chain Insights

To understand supply chain excellence, we have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. We have found that only a few companies are improving the potential of their supply chain to balance supply chain metrics. Each peer group has a unique equation based upon what drives value in their specific value chain.

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). While groups of 3PL’s may have similar characteristics, the supply chain management services will each value different aspects of your solution by different measures. Choosing the right target means defining your metrics, such as measuring carrier performance.

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Big Tech and Auto Battle for the World’s Cobalt Resources

Elementum

million metric tons (or 60% of the world’s supply). million metric tons. However, as standards for sourcing become more strict, these big players may lose business if they fail to provide visibility into their supply chains. It’s estimated that locating enough new sources to meet these demand spikes would take about 30 years — a long-term solution for a short-term need. firm Freeport-McMoran and Eurasian Resources Group.

Misnomer

Supply Chain Shaman

It was my first time working with this group. The team was organized around the functional silos of source, make and deliver. The group laughed. ” The group was quiet as we discussed the fact in the traditional organization that functional silos are not designed to work together. Instead, we found that the companies with the lowest total supply chain cost (a total of source, make and deliver) had average costs in manufacturing and distribution.

Top 25 Supply Chains of 2018

Material Handling and Logistics

One of the most popular articles we’ve ever done is our look at analyst group Gartner’s annual ranking of the Top 25 Supply Chains. So the CSR score too is more of a popularity contest than a consistent metric. Source ID. Source ID. Source ID. Source ID. In particular, the company has been criticized for its long-time practice of using local water sources for its products. Source ID. Source ID. Source ID. Source ID.

Talk Doesn’t Cook the Rice

Supply Chain Shaman

I have worked for Gartner Group, AMR Research, Altimeter Group and now my own company, Supply Chain Insights. To understand supply chain excellence, Abby and I have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. We find that each peer group has a unique equation based upon what drives value in their specific value chain.

[WHITE PAPER] 4 Strategic Considerations when Considering Offshoring Parts of your Supply Chain

Cerasis

In fact, our friends over at the Rodon Group, with whom we’ve started an ongoing blog collaboration, starting with this post and more to come, have written a White Paper entitled, “ Hidden Risks and Costs in an Offshore Supply Chain.” In this new white paper from The Rodon Group, they’ll examine three strategic areas to include in your supplier selection process: Cost, Scheduling, and Compliance.

7 Easy Steps to Create an Inbound Vendor Routing Guide

Cerasis

Identify the Limitations and Provisions for Each Form of Transportation for Each Area. Volume and weight should be classified appropriately into one of four groups, including the following: 1 to 150 pounds or small package. It needs to have a fail-safe to prevent vendors from selecting incorrect shipping methods and provide a source of cross-checking between shipment selection. An inbound vendor routing guide is comparable the beating heart of your operation.

Big Tech and Auto Battle for the World’s Cobalt Resources

Elementum

million metric tons (or 60% of the world’s supply). million metric tons. However, as standards for sourcing become more strict, these big players may lose business if they fail to provide visibility into their supply chains. It’s estimated that locating enough new sources to meet these demand spikes would take about 30 years — a long-term solution for a short-term need. firm Freeport-McMoran and Eurasian Resources Group.

Welcome Puff, The Magic Dragon, to Your Team

Supply Chain Shaman

The product development group advocated a long-tail supply chain strategy with many combinations of color, packaging sizes, and artwork. The promise of mathematical engines to improve business decision making is the basis of the supply chain planning, trade promotion management, revenue optimization, and supply chain execution markets for transportation/logistics. These included cloud-based computing, in-memory processing, parallel computation, and open-source analytics.

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Let the Qs Begin

Supply Chain Shaman

This report, Supply Chains to Admire , compares the progress of 200 companies within their respective peer groups on both performance and improvement. There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. How do you balance the trade-offs between source, make and deliver? Last week was the Supply Chain Insights Global Summit. It was great to see old faces at the kick-off.

Guest Commentary: P.O. Management Programs – Know Pain, Know Gain!

Talking Logistics

Diffuse resistance by inviting stakeholders from internal groups to become part of the solution as early as possible. Your stakeholders can: Align sourcing, purchasing, logistics, and I.T. Sourcing uses P.O. performance metrics to influence vendor behavior and impact sourcing choices. Order visibility and control combine with logistics strategies to realize transportation savings that impact the bottom line.