Remove Inventory Remove Logistics Remove Metrics Remove Six Sigma

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. One example that I’ve seen several times is around inventory targets. The result is a lower inventory level, but much higher expedited costs and reduced customer service.

Employing this S.M.A.R.T. Technique with a Logistics Company to Create Total Stakeholder Satisfaction

Cerasis

Today we continue our series on successfully working with a logistics company, often called a third party logistics company by focusing on how to properly understand the success of the engagement by knowing all the key performance indicators that a shipper could put in place. We will then finalize the series on logistics key performance indicator success management with practical techniques to carry through the academic subjects we've covered thus far. .

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Managing a Third Party Logistics Partnership

The Logistics of Logistics

This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. Chuck specializes in Supply Chain Optimization, Third Party Logistics (3PL) and International Purchasing and Importing Consulting. The post Managing a Third Party Logistics Partnership appeared first on The Logistics of Logistics.

9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL

Cerasis

This is the first post in an ongoing series on effective KPI management from third party logistics consultant, Chuck Intrieri, of The Lean Supply Chain. . A service-level agreement (SLA) is a contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish. Many logistics service providers will provide their customers with an SLA. All KPIS have metrics to measure.

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Eliminating Your Excess Inventory

Loop Supply Systems

Eliminating Your Excess Inventory. Excess inventory is experienced by nearly every manufacturer – and it’s a big problem. Inventory is one of the 7 Lean Mudas (Japanese term for ‘waste’). COST OF EXCESS INVENTORY. According to Chris McLaughlin at LeanCor , a lean consulting company, Inventory Carrying Cost (ICC) is estimated to be an astonishing 18-25%. Now think about all of your inventory. THE INVENTORY QUALITY RATIO.

Make Your Supply Chains Less Complex – and Less Wasteful!

Talking Logistics

Mariotti states that you first have to measure it, and he outlines several metrics and techniques in the book, including ranking customers by annual sales, profit, and gross margin percentage. Inventory : Having raw materials, work-in-progress (WIP) or finished goods that are not having value added to them. Take, for instance, Six Sigma black belts. Supply Chain & Logistics Trends complexity Elemica Lean process industries value stream mapping waste

9 Steps to Establish the Lean Supply Chain: A System of Interconnected & Interdependent Partners

Cerasis

There should be metrics involved to monitor these objectives to ensure success across the supply chain. These metrics should be reviewed frequently to ensure supply chain success. o Space—holding places for unnecessary inventory. o Inventory—inactive raw, work-in-process, or finished goods. To drive further value, look for technology providers in the logistics and supply chain space who can integrate these systems together.

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How to Get a Job in the Supply Chain Sector

Logistics Bureau

And now let us examine the reasons why a career in logistics offers so much diversity to so many workers. If engineering is your thing, you could join a third-party logistics company and focus on solutions design. Manage inventory levels. Production Planner/Inventory Controller.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

The focus is to eliminate all wastes in the organization, improve processes, solve root cause problems, create a pull environment, and ensure that Lean Six Sigma (LSS) works for quality and daily problem solving using DMAIC (Define, Measure, Analyze, Improve, and Control) and PDCA (Plan, Do, Check, and Act). These metrics would, of course, be aligned and are updated every hour. Specific metrics: process metrics and outcome metrics.

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Supply Chain Management Services

LeanCor

Do they embrace a methodology like lean, six sigma, or operational excellence? Focus on total logistics cost reduction (transportation, warehousing, and inventory). Whether you are looking f or supply chain management services or have had experience with a third party logistics provider (3PL), you may have realized that finding the right partner isn’t easy. Because businesses have unique logistics needs, an easy solution is not a solution at all.

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Real-World Scenario: Best Practices for Warehouse Contracts: Part One

Cerasis

When it comes to the logistics industry, whether it's transportation management contracts or warehouse contracts, there are a million moving parts, and as many questions. In the below is a real world example of a consultant coming to a third party logistics company with the goal of choosing a warehouse and 3pl provider. Currently they incur a annual spend of USD 380-420 Million for their warehousing needs, of which ~60% spend is for brand new six warehouses (average space of 1.5

KPI 212

Podcast: Marcia Williams on Supply Chain Optimization and Digital Transformation

Requis

Dr. David Closs runs the program now, but when I was a student he was teaching logistics. In the end-to-end supply chain there’s procurement, logistics, operations, and warehousing. And, no surprises here, I attach metrics so I can measure the baseline.

Lean initiatives and the Supply Chain

The Lean Supply Chain

There should be metrics involved to monitor these objectives to insure success across the supply chain.These metrics should be reviewed frequently to insure supply chain success. o Space—holding places for unnecessary inventory. o Inventory—inactive raw, work-in-process, or finished goods. Utilize Six Sigma’s DMAIC: Define, Measure, Analyze, Improve and Control to solve any problems or roadblocks. Logistics assets are reduced by 15 percent.

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Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

Jobs believed that Apple'' supply chain was too complex then both of them reduced the number of product availability and created 4 products segment, reduced on hand inventory and moved the assembling activities to Asia so they could focus on developing the breathtaking products that people wanted to buy. The answer is that they use the multi-echelon inventory model to solve the problem. The secret behind its supply chain success is the use of Six Sigma approach.

What Going Digital Can Mean for Your Warehouse Operation

EFT

Many Lean Manufacturing or Six Sigma Methodologies champion this while calling for process improvement and business optimization through faster, safer and more comprehensive approaches. In turn this ultimately will reduce logistics and transportation costs and further drive inventory control measures to new levels. Furthermore, many performance metrics can be implemented in to leading platforms to help organizations achieve goals from the ground-up.

Judging Supply Chain Improvement: Campbell Soup Case Study

Supply Chain Shaman

We have found that supply chain metrics are gnarly and complicated.During We believe that a supply chain leader is defined by both the level of performance on the Effective Frontier (balance of growth, Return on Invested Capital, Profitability and Inventory Turns) and driving supply chain improvement. Resiliency is the tightness of the pattern, or the reliability of operating margin and inventory turns results.

Seasoned Leadership in Action! An Interview with Paul Kretz, Head of SCM at Church & Dwight!

Supply Chain Game Changer

That is how I got into logistics management and gained deep warehousing and transportation experience. I moved into the third-party logistics industry just as that was taking off and gained a ton of experience in logistics costing, WMS installation, selling services and technology skills. Toss in a dash of time as a retail logistics leader, sometime consulting and I have seen many aspects of Supply Chain and Operations. They used to call it seagull logistics.

SCM 49

What Going Digital Can Mean for Your Warehouse Operation

EFT

Many Lean Manufacturing or Six Sigma Methodologies champion this while calling for process improvement and business optimization through faster, safer and more comprehensive approaches. In turn this ultimately will reduce logistics and transportation costs and further drive inventory control measures to new levels. Furthermore, many performance metrics can be implemented in to leading platforms to help organizations achieve goals from the ground-up.

4 Common Supply Chain Cost Blowouts

Logistics Bureau

How to fix the problem: Some measures that your company can take to prevent supply chain cost blowouts as a result of inefficiency include: Implement a continuous improvement program, such as lean or Six Sigma. Implement performance metrics and monitor a selection of key performance indicator. Inventory. The problem is usually created by holding too much static inventory. Naturally, there is the direct cost of procuring and holding the inventory.

What is a Service Level Agreement (SLA)? How does an SLA work with Key Performance Indicators (KPIs)?

The Lean Supply Chain

A service-level agreement (SLA) is a contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish. Many logistics service providers will provide their customers with an SLA. It can take months to negotiate a complex SLA/KPI document, as you go back and forth with your logistics provider so the document becomes a “win-win” for both parties.

KPI 59

Warehouse Audit and Survey

The Lean Supply Chain

First, look at the inventory: Is it pallets? Typically, 80% or more of a company’s inventory, and sometimes accounts for more than half of its working capital , would get plenty of attention. Improving receiving and warehouse performance can enable you to take multiple days out of inventory.). Is your inventory turning 6-8 + times/year? Performance and diagnostic metrics will be collected & published. Chuck Intrieri. Paso Robles, CA. 714-788-0744. link].