Uncertainty and risks. Increasing response to orders (that is reducing lead times) is apparently becoming the requirement of buyers, from consumers to retailers to tier 1 suppliers and back through supply chains. If this situation is true (and I have doubts about the actual situation vs the hype), then having sufficient inventories at critical nodes in your supply chains will … Read More
Managing inventory, supply chains and risk management
Why are inventories increasing? The risks in your organisation’s supply network can be reduced in two ways. At the strategic level, supply chains and operational processes can be changed, but to achieve this outcome takes time. The more likely approach is for Logisticians to manage capacity and inventory. However, in the era of globalisation, the opportunity to manage capacity has … Read More
Complex supply networks are facts of life to understand
Supply Chain thinking. Understanding how your supply network functions is critical for professionals engaged with their supply chains. Understanding enables the scope and responsibilities of professionals to be defined and importantly, allows management at senior and middle levels in disciplines affected by supply chain decisions to understand why. How supply networks function became a core interest of mine in the … Read More
What price to pay for indirect products and services?
There is not a ‘list’ price online. The price you are prepared to pay for an item is when you consider most value will be gained. To many of us, this is based on the ‘list’ or advertised price that is available to all. However, this weekend, I experienced shopping on-line where prices are never set as a ‘list price’, … Read More
Analyse sources of information in a supply chain report
Rights and wrongs in supply chains. The visibility of supply chain professionals is increasing in organisations. Therefore it is more likely that you will be asked by senior management or the board of directors for input to decisions about such factors as the future business model (including off-shoring and global procurement) and technology investments. The challenge in writing the report … Read More