Uncertainty in supply chain elements Support from the Finance and Accounting group within your organisation is vital for the effectiveness of Supply Chains. A step in gaining support is through segmenting the elements of your organisation’s supply chains into categories for improved management. The main elements within a supply chain are customers, finished goods inventory and service parts (when applicable), … Read More
Reducing Power and Dependency in Supply Chains Cloud
Risks when relying on the Cloud Data and information have value, so organisations need to ideally own, manage and control their supply chain data and information. But this can be a challenge in a Cloud based IT world. The continual message about ‘partners’ and ‘partnerships’ in business can hide the fact that suppliers are in business to make a profit. … Read More
Logistics analysis: total cost of holding inventory
Lowest Total Cost of Inventory Calculating the cost of holding inventory is typically not available in supply chain applications. But this is one of the required inputs for establishing and maintaining an Inventory Policy. Approaches to determining the amount of inventory needed to satisfy customer expectations range from a ‘rule of thumb’ approach such as ‘order X weeks of stock … Read More
Container ports congestion and delays in supply chains
Visibility by Logistics Service Providers The wish for visibility through supply chains has risen in surveys over the past twelve months. However, the current congestion and delays at some ports illustrate that whenever the movement of items is controlled by Logistics Services Providers (LSPs), there is a limited range of options for the shipper. Even if you are aware or … Read More
Supply Chains need to measure the accuracy of forecasts
Forecasts are always wrong This statement is true, but forecasting helps to be less wrong. Forecasts of future sales will never be ‘correct’, but they can be made more accurate by using ranges in forecasts and measuring ‘forecast error’. The market demand (and supply) for an item is a ‘continuous variable’ consisting of multiple variables that interact dependently, independently and … Read More