Put it out with a perdurable
What will a typical supply management organization look like in 10 years? It's hard to say for sure, but it likely will be complex, high-tech, supplier network-driven, and spread out across the globe. Supply managers have always helped their organizations cut costs by negotiating favorable rates for procuring goods and services. But to survive and thrive in the coming decade, cutting costs alone will not be enough in most companies.
network of scm
Tuesday, May 17, 2011
Sunday, April 3, 2011
Agriproduct for the generation next: Probiotic advantage
Agriproduct for the generation next: Probiotic advantage: "Probiotics help keep up the balance between harmful and beneficial bacteria in the gut thus maintaining a healthy digestive system. Helps t..."
Saturday, April 2, 2011
How do you differentiate Supply Chain Management with Logitics?
- Logistics is, as Peter described, the movement of material between trading partners: Vendor to Company, Company to Customer. In other words, the transportation element. Supply Chain is managing all of the material movement related to the trading partners: Visibility to Vendor Inventory, Ordering from Vendor, Receipts from Vendors, Storage, Production/Sales Order Fulfillment, Loading, In-Transit Visibility, Visibility to Customer Inventory and Ordering from the Customer.
- Logistics makes the core - methods and tools - process engineering and operational execution. It used to be treated as an internal or at last simple multi-tier process at first. Since importance of logistics and process thinking in general increased in value it gained strategic facet as well. Once that happened one couldn't operate only in constrained silo thinking, needed further perspective - business approach with all management wisdom deployed. Negotiations, business process management, continuous improvement, customer/supplier relations, externalities, social responsibility, etc., etc.. It all adds on to logistics making it supply chain. Hence in mind opinion SC is much bigger than logistics. It will remain so. I would dare to say that business management, as we know it now, will be superseded by SCM pretty soon.TO Me , SCM is more about the predictive nature of the business landscape and Logistic is the physical nature of the goods in motion.
- logistics as the time related positioning of resources(men+Facilities+fleet+Ships+Planes+Information) that a company has at it's disposal to manage it's Supply Chain.Supply Chain Management has got infinite possibilities. If A company or Group of companies has/ have enough resources and particularly deep pockets and an enviable reputation in the market , then they could potentially run the economy of a place, through their efforts to deliver: the right product ,is in the right quantity ,in the right condition ,to the right place ,at the right time ,for the right cuer in complex chain of supplier/ customer relationships .
- "Logistics is the science or art (semantics?) that coordinates the activities involved such that a customer receives the right product in the right quantity at the right time" Thus "Logistics" applies as a subset of determined processes, methods and events used WITHIN the context of Supply Chain Management to accomplish SCM in any given situation. To that extent, there most likely will be a multiplicity of discrete "Logistics" plans within an overall Logistics plan within any particular SCM thread depending upon the overall level of complexity of the processes and sub-material parts involved in producing the deliverable result to the end-user/ customersupply chain - a series of producers joined together from raw materials to finished product in customers hands. Then, there is the need to manage that supply chain. This involves 5 distinct competency sets, namely:
- Production & Inventroy Control
- Strategic Procurement
- Transportation & Storage
- Information Systems
- Improvement
- logistics would be all tasks related to warehouses and transportation.Supply Chain is a wider concept that goes from the initial signal of demand (forecasting), supply planning, supply ordering, logistics and customer order management. SC is an end to end process or responsibilties
finallly in my opinion we can say-
- "Logistics is the management of the flow of goods and services between the point of origin and the point of consumption in order to meet the requirements of customers. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility" Supply chain deals with the unquantifiable elements, like which vendor will produce X amt in Y days... which Customer zone will want A amount of Goods.. Etc..
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§ Decrease “hold for parts” by 27% to 35% or more
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To get started, click on the calculator, then follow the instructions on the Total ROI tab to see your results. If you like what you see, call Valogix to schedule your personal demonstrationkey strategy for new generation
- Seven key strategies for supply organizations in the next decade:
- Developing robust and forward-looking category strategies
- Developing value-added relationships with suppliers
- Designing and operating multiple supply networks to meet the needs of specific market segments
- Leveraging technology for internal productivity and external effectiveness
- Collaborating internally across functions and externally with suppliers and customers
- Attracting and retaining supply management talent
- Managing and enabling the global supply management organization
The time where you just do things is over. Companies were not used to look at alternatives because there was not many alternatives. Nowadays, there is so many options out there that SCM can and should always be improved. If a SCM is not effective, the customer will simply go somewhere else and therefore your business will suffer and possibly go bankrupt, and this will have an impact on other entity's of the SCM.
Which leads me to think that every entity of a SC should constantly look for improvement because it will benefit not only to them, but to their supplier and customers as well. Two important questions should be asked:
1) What can I do to make my part of the SC more effective and profitable?
2) What can the SC as a group do to make the process more effective and profitable?
Of course we want our entity to be profitable, but what will happen if we communicate more with other entity's of the SC? Entity's that work with "blinkers" (advise me if there is a better term), will not survive today's industries. We have to collaborate and look for improvement together.
Which leads me to think that every entity of a SC should constantly look for improvement because it will benefit not only to them, but to their supplier and customers as well. Two important questions should be asked:
1) What can I do to make my part of the SC more effective and profitable?
2) What can the SC as a group do to make the process more effective and profitable?
Of course we want our entity to be profitable, but what will happen if we communicate more with other entity's of the SC? Entity's that work with "blinkers" (advise me if there is a better term), will not survive today's industries. We have to collaborate and look for improvement together.
I always bring SAP, and Oracle up, because the CEO's and VP's are counting (trusting) on it. It's a "priority" with many Executives. Better strategic planning should be the "priority", not the MRP/ERP software fads. I've experienced it. The CEO's gets confused trying to figure out what happened to the inventory surplus (or shortage). He put his faith in the software, and not having a good strategy. A shotgun approach to the strategic manufacturing game plan, happens all the time. I've witnessed it. Also have read dozens of articles about tens of millions in over inventory, based on poor planning. It's not about the software fads, or the Lean Manufacturing "certifications". Speaking of which, this whole Lean-Manufacturing "certification" fad, is another popular thing for the lemmings, chasing "new" solutions. The terms have changed, but the concepts are old. "Lean-Manufacturing" is a rip-off of Deming's efficiency teachings.
Wrestling with the Bullwhip Effect
The 2007-2009 recession brought about shifting consumer demand that left wholesalers and manufacturers grappling with how best to change inventory and production strategies. These changing demand patterns wreak havoc up and down the supply chain, challenging manufacturers, wholesalers and retailers to match supply with demand. The challenge is greatest for manufacturers and wholesalers, however, because they are furthest away from the customer and therefore are often the slowest to react to changing demand signals -- a phenomenon known as the bullwhip effect.
The 2007-2009 recession brought about shifting consumer demand that left wholesalers and manufacturers grappling with how best to change inventory and production strategies. These changing demand patterns wreak havoc up and down the supply chain, challenging manufacturers, wholesalers and retailers to match supply with demand. The challenge is greatest for manufacturers and wholesalers, however, because they are furthest away from the customer and therefore are often the slowest to react to changing demand signals -- a phenomenon known as the bullwhip effect.
Buyers Beware: Your Supplier May Be Your Next Competitor
When executed correctly, strategic sourcing -- a multi-faceted approach to purchasing contingent on types of goods and services -- yields many benefits for both buying companies and their suppliers. But, by ignoring the complexity of strategic sourcing and focusing only on cost reductions, some aerospace buying companies have unintentionally turned their suppliers into competitors, according to new research by W. P. Carey professor of supply chain management Thomas Choi and his former doctoral student, Christian Rossetti.
When executed correctly, strategic sourcing -- a multi-faceted approach to purchasing contingent on types of goods and services -- yields many benefits for both buying companies and their suppliers. But, by ignoring the complexity of strategic sourcing and focusing only on cost reductions, some aerospace buying companies have unintentionally turned their suppliers into competitors, according to new research by W. P. Carey professor of supply chain management Thomas Choi and his former doctoral student, Christian Rossetti.
For any shopper who noticed how the price of hamburger and lettuce jumped after gas prices soared last year, this should come as no surprise: Buyers eventually feel the pinch when their suppliers' expenses surge. The reason? Buyers and sellers operate within networks that exceed the one-on-one, buyer-seller bond. That's why Thomas Choi, a professor of supply chain management at the W. P. Carey School of Business, thinks supply chain professionals would be wise to look beyond the supplier to its supply network. Without it, he argues, buyers are not examining all the factors affecting the strength and reliability of the suppliers they
choose. Such shortsightedness leaves buyers vulnerable to supply troubles and missed opportunities
Help Improve Sales Analysis and Forecasting with Better Demand Planning
Without insight into historical trends and upcoming events, predicting customer behavior isn't much better than making an educated guess. How can manufacturers and distributors avoid a hit-and-miss approach and make use of the facts to accurately forecast needs? With the right tools, you can look to the data inside your systems to help.
Applications designed specifically for demand planning provide automated tools for mining applicable data deep within your systems, and delivering it to those who need it in a familiar format they can use right away. Your decision makers can then plan based on your company's demand history, current or upcoming events and promotions, insight from customer data, and input from trading partners.
When integrated with your enterprise resource planning (ERP) system, demand planning applications can help you:
· Compare calculated forecasts to actual results over time for trend analysis.
· Focus on "hot spots" to prepare for what's coming into high demand.
· Share forecast information securely via the Web through role-based portals.
· Reduce operating costs.
· Streamline production.
The end result: lower inventory costs, fewer stock outages, faster time to market, and happier customers..
The Next Decade in Supply Management
Supply management in the decade ahead will be complex, high-tech and global, finds a new survey from CAPS Research. A quick numerical breakdown highlights some of the report's most impactful findings.
- Eight external forces will affect all businesses:
- Global competition
- Mergers, acquisitions and supply market consolidations
- Increased governmental regulation
- Technology advances
- Customer and channel dynamics
- Increased product variety and shorter product lifecycles
- Social responsibilities
- Environmental responsibilities
- Five business strategies will have the greatest impact on supply management:
- Focusing on cost competitiveness
- Aggressively managing resources
- Pursuing new revenue sources
- Targeting specific customer and market segments
- Improving the level and speed of innovation
- Four areas future supply managers will be expected to tackle:
- Delivering more innovation from suppliers
- Contributing more broadly to revenue generation
- Anticipating and managing supply risk to ensure business continuity
- Expanding the breadth and impact of cost management efforts
Friday, April 1, 2011
Companies had started to re-evaluate how the changing business environment can or has impacted their organization in 2010. The change to a global economy has created increasing numbers of variables in today’s Business landscape. Examples of these changes include increased customer demands, greater complexity within the global business network, and compliance constraints. Additionally, the recession has resulted in a greater increase to preserve working capital. Companies have started reassess their supply chain strategies and approach which is the first step. The big challenge in 2011 is around how many companies will act on these findings.
It is quite evident that designing next generation supply chains requires attention to dimensions such as configuring the right logistics network, engaging the right alliances and partnerships, developing contingency plans against uncertainties and selecting appropriate production, inventory and distribution strategies. Increasing level of international trade is usually directly proportional to increase in uncertainty and thus the need to identify underlying causes and strategies to protect against potential disruptions. Digital economy and information technologies in the form of E-supply chain solutions have the potential to directly contribute to measurable parameters, such as compressing cycle time, lowering inventories, decision-making quality, reduced overhead costs .
Risk Management will be the top challenge for companies in this year.
It included transportation issues, its equipment and personnel shortages, fuel prices, and environmental considerations should be added to the list. Cost Cutting, Reducing Lead Time and Increasing throughput to inflow actual money into the system..
As per me the following challenges SCM have -
•Cost effective Green Supply Chain.
• New management models dealing with skills, collaboration and outsourcing.
• Demand Management and Mass Customization.
• New Technology and ICT.
• Managing SC uncertainty, complexity, customer responsiveness and risk.
• Emerging economies
• New management models dealing with skills, collaboration and outsourcing.
• Demand Management and Mass Customization.
• New Technology and ICT.
• Managing SC uncertainty, complexity, customer responsiveness and risk.
• Emerging economies
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