Remove Inventory Remove Metrics Remove Sourcing Remove Transportation

Transportation Sourcing in an Omni-channel World

Talking Logistics

Omni-channel is transforming retail transportation’s supply chain and logistics processes. Unfortunately, many retailers are jumping in without a plan — that is, they are taking a short-term, silo’ed approach to transportation sourcing and execution, and as a result, are failing to meet their desired outcomes. And, what are some of the key factors retailers need to consider when developing their transportation plans?

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. The goal is to keep inventory levels at a minimum to meet customer needs. Review Inventory turns and Return on Assets. For clarity, in measuring supply chain performance, we should be focusing on: inventory, working capital, and time.

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Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Reward teams for cross-functional metrics.

10 Ways Effective Transportation Management Drives Competitive Advantage

Cerasis

Transportation management is no longer a tactical approach to simply moving freight and doing it at the lowest possible cost. There are several factors that exist today that are forcing shippers to use even more resources, which distract from their core competencies , in order to have a strategic and much more nuanced, complex transportation management practice. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy.

Lean Transportation: Are you Using Lean Thinking for Transportation Management? If not, Why?

Cerasis

For shippers, culture and behavior have to change to apply Lean Transportation thinking. The “Them (company leadership) versus Us (shop floor associates)” mentality also needs to change for Lean Transportation to " WE. The 8 Rights To Achieve Lean Transportation Practices. The are the 8 Rights of Lean Transportation thinking: Right Materials, Right Quantity, Right time, Right Place, Right Source, Right Price, Right Quantity, and. Transportation takes time.

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Guest Post: Ignoring this Performance Metric is Risky

TMC

For instance, when a disaster such as a hurricane, a labor strike, or a bankruptcy disables key suppliers, quick-moving enterprises are able to lock in alternative sources of supply before their rivals. Managing adverse weather conditions is part and parcel of transportation planning. There is growing interest in incorporating weather forecast data from a variety of sources into supply chain planning.

Understanding Supply Chain Management

SupplyPike

These activities can involve storage and transport of inventory or supplies, monitoring of day-to-day activities, the preparation behind these processes, and blending these different components throughout the supply chain. Five Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain. Replenishable Instock Percentage: Replenishable instock shows the percentage of stores that currently have inventory vs. stores that should have inventory.

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21 Vendor Metrics Your Supplier Scorecard Might be Missing

Supply Chain Cowboy

But is your scorecard missing key metrics? It includes a free Excel template that you can modify to match exactly what metrics you want to measure. While some of these metrics might not apply to your business model, there’s definitely a few to add if they measure something important to you and your customers. Of course, you’ll want to be courteous and professional with your feedback, but being open and honest with this metric can go a long way to solving problems between you.

Wanted: Supply Chain Architects!

Supply Chain Shaman

I knew nothing about the world of logistics, inventory management and order optimization. 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. It should not be functional, with a narrow focus on a singular function like manufacturing or transportation. Stage 2: All about Transportation.

13 Reasons Why You Need a Global Transportation Management System (TMS)

3rdwave

In today’s turbulent trading environment, strong global transportation management capabilities deliver exceptional benefits and value. From optimizing freight movements and controlling freight costs, to supply chain SKU transparency and optimal inventory management, the value proposition for global transportation management is substantial and significant. Managing the complexity of global transportation requires human capital, time, and/or money.

5 Ways to Optimize Your Logistics & Transportation with Lean

Arkieva

Are you using lean in your logistics and transportation management? The transportation company’s culture and behavior should change to apply Lean thinking. Transportation takes time. The need to transport parts also drives inventory up, creates a need for space to store those parts, and uses energy for more forklift time and warehouse heating. The list of additional waste generated by transportation goes on and on. Right Source.

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Manufacturing Gains From Machine Learning

IQMS

Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Asset Management, Supply Chain Management, and Inventory Management are the hottest areas of artificial intelligence, machine learning and IoT adoption in manufacturing today. 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.,

Why A Successful Transportation Management Program Is Empowered By Data

Cerasis

Today we continue our long series and look at teaching shippers how to remain strategic when it comes to logistics and their transportation management program. Strategic Logistics: 8 Steps to Controlling Inventory Flow & Driving Warehouse Efficiency. The Use of Data to Create a Successful Transportation Management Program. Data originates from one of two primary sources: individual sensors gathering data or manual entry of data. Metrics.

Top 5 features to look for in a Transportation Management System (TMS)

Abivin

Selecting the correct software system for the business helps to attain process efficiency, gain visibility into the supply chain, and decrease general transport costs. One of such software is transportation management system (TMS) which is a subset of supply chain management regarding transportation operations (Mei & Eliot, 2017). TMS has become an indispensable tool in a growingly competitive and complex transportation landscape.

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

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. For example, only 29% of manufacturing companies can access total cost data and 31% struggle to see the impact of business decisions on inventory. We finished dinner. I pressed my neatly folded napkin to my lips.

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13 Reasons Why You Need a Global Transportation Management System (TMS)

3rdwave

In today’s turbulent trading environment, strong global transportation management capabilities deliver exceptional benefits and value. From optimizing freight movements and controlling freight costs, to supply chain SKU transparency and optimal inventory management, the value proposition for global transportation management is substantial and significant. Managing the complexity of global transportation requires human capital, time, and/or money.

Made in “I Really Don’t Know”

Talking Logistics

As reported in USA Today : [In a sourcing practice nicknamed “China plus one”], big brands like Rip Curl send their specifications — what they want made and how much they’re willing to pay for it — to sourcing agents, who find factories that agree to fulfill them. no metrics, operate in functional silos). Therefore, the first step is to define those processes, along with who will execute and manage them and what the right metrics should be.

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. The Sustainable Freight Action plan released by California governor Jerry Brown outlines a long-term 2050 vision and guiding principles for California’s future freight transportation system. New Study Shows a Rise in US Company Inventories. Source: Commerce Dept.

How Machine Learning Is Redefining Supply Chain Management

IQMS

Key factors influencing inventory levels, supplier quality, demand forecasting, procure-to-pay, order-to-cash, production planning, transportation management and more are becoming known for the first time. Source: Machine Learning – A Giant Leap for Supply Chain Forecasting, Material Handling and Logistics Conference (PDF, 28 pp., Source: DHL, Artificial Intelligence in Logistics, 2018 (PDF, 45 pp.,

Optimize Your Freight Spend Without Negotiation

Talking Logistics

Companies across all industries are dealing with rising transportation costs and a key question many CEOs, CFOs, and supply chain executives are asking is, “What can we do to better manage and control our freight spend in today’s market?” It is rare today to read the Wall Street Journal or listen to an earnings call without hearing about the impact of rising transportation costs. The second question we get is what strategies can we implement to lower our transportation costs.

Integrated Planning: Is It Rubbish? Be Careful What You Ask For….

Supply Chain Shaman

I find most companies are good at pockets of planning–demand planning, supply planning, transportation planning, material planning or plant scheduling, but the flows are not connected. Each are good at localized planning within a focused area of demand, supply, network design, transportation planning, material sourcing or finite scheduling. The greatest value happens when companies can link across source, make and deliver.

Balancing Cash, Cost and Service: The Supply Chain Triangle

Arkieva

Over the last 5 years I have seen many companies launching inventory reduction programs. When launching an inventory reduction program, companies should be aware that inventory, as a part of Cash, should always be balanced with Cost and Service. They can increase the inventory and as such require more cash. We can also reducing lead times by providing excess capacity or by using faster transportation modes. Inventory is an important element of working capital.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Companies that directly connect financial data to supply chain data without creating a feasible plan at an item/location level rate themselves significantly lower on S&OP effectiveness creating higher costs, levels of inventory and order short shipments. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service.

How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus is on make, source and deliver together. Use of third-party data for transportation lane and drayage times by day/time of week. Inventory. Focus on the level of inventory. Metrics.

Building a Business Case for Improved Demand Forecasting

ToolsGroup

Gartner says that you shouldn’t just pitch forecast accuracy to your executive management, but translate your plan into business metrics. You must be able to make a direct link between the forecasting accuracy improvement and customer service, cost, efficiency, inventory, cash flow or capability improvements,” says Gartner. 2% reduction in transportation costs (percent of sales). 9% reduction in inventory obsolescence (percent of inventory value).

Help Supply Chain Planners Be More Successful In These Uncertain Times

Supply Chain Shaman

Before boarding the plane, I watched a traveler pull a diet Coke from the bin and thought about the struggle to source sweetener with the rise of COV-19. As I poured the dog food into the bowl for my pups, I wondered if I was going to have to switch kibble due to the looming issues of sourcing taurine—a health additive in many pet foods. The answer is to increase modeling, evaluate sourcing strategies, and build the right push/pull decoupling points.

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. This year-over-year comparison, enables visualization of performance on two metrics.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more. Source ID. Source ID. Content Summary: Personal Mover Transports Employees around BMW Plant. Source ID. Source ID. Source ID. Source ID.

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. We do not believe that there is much value in putting all companies into a spreadsheet and shaking them up… or looking at singular metrics without analyzing the intricate trade-offs of the supply chain when viewed as a complex system. When companies look at singular metrics (labor costs or inventory), they have moved backwards.

Effectively Manage Foodservice Supply Chains During Disruptions

CH Robinson Transportfolio

Every decision becomes more impactful based on these metrics. Robinson experts act as an extension of your team when it comes to contract management, transportation, warehouse services, consolidation, last mile delivery and fresh produce sourcing—allowing you to optimize your entire supply chain holistically. Product alignment: Geography and transportation. With foodservice providers shuttered, it’s been an uncertain year for many.

Reimagine Supply Chain of the Future – agile, resilient, and balanced – LogiSYM July 2020

The Logistics & Supply Chain Management Society

To create flexible and balanced supply chain organisation, it is necessary to integrate strategy, processes, metrics, and technology enterprise wide and across customers, suppliers, and service providers. Develop methodologies to measure risk for each supply chain node, warehouse, factory, supplier, geography, or transportation node. Diversify supplier base : Supply chain should not be overly dependent on long lead-time or on a small pool of specific suppliers or sourcing regions.

Forecast Accuracy at the SKU Level is Achievable

Logility

Accurate forecasts help minimize inventory, maximize production efficiency, streamline purchasing, optimize distribution, maximize customer service, ensure confidence in company financial projections. Gartner, for example, places demand forecasts at the top of their Hierarchy of Supply Chain Metrics to highlight the impact of forecasts throughout the supply chain.

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.