Be noticed at board level. To ensure the board of directors at your business take notice of Supply Chains and Logistics, the board must review financial performance measures that are the responsibility of the supply chain group. The most applicable measures are: cash flow, working capital and return on investment (ROI). Of these, working capital and its derivative, the cash … Read More
Know your Cost To Serve for increased profitability
The real profitability of your customers. How much does it cost to serve your customers? What changes to product mix, order size and delivery times will increase your profit.How profitable are your customers, or a particular channel or a market segment? It is difficult, if not impossible, to know if the analysis is not done. But to do the analysis, … Read More
Measure your Customer Service through Logistics
Achieving the perfect order. An empty shelf at a supermarket results in dissatisfied consumers, less sales by the retailer and if the item is not available at the retailer’s warehouse, then questions of the supplier, For logistics, the overriding requirement of your customers is that each of their orders is a ‘perfect order’. A perfect order means: the initial customer … Read More
Does Logistics Play a Part in Your Capital Investments?
Reduce spending in your business. Are ‘savings’ in maintenance expenditure real savings? In a future time, when the original decision maker has moved to another job, additional expenditure will be required to keep the items or equipment operational. A recent court case in Australia found an electricity utility guilty of causing a devastating fire that killed a number of people … Read More
Logistics Service Providers can improve their business
What do shippers require of their 3PL suppliers? A third party logistics (3PL) service provider is unlikely to be equally good at every part of their service offering. So what aspects of the service should 3PL businesses and their shipper clients aim for? The events firm Eye for Transport has recently asked shippers and retailers in North America to rank … Read More