Inventory budget approach by Finance The Business Planning process, which includes budgets is typically controlled by Finance. How does Finance calculate the average value of inventory which the business can support? Is the Supply Chains group (Procurement, Operations Planning and Logistics) able to identify whether the figure provided by Finance is achievable? The Business Planning process is discussed in the … Read More
Select and Implement AI not different in Supply Chains
An announcement about AI The more general use of Artificial Intelligence (AI) became a step closer with the recent announcement by Microsoft of Copilot for Office 365. However, does this mean the beginning of the Peak of inflated expectations (from the Gartner Hype Cycle)? This is when the hype of the new technology, its multiple uses and ease of implement … Read More
Which items are critical (or not) in your supply chains?
Are tomatoes a critical item? Recent alarm in the UK concerning a shortage of tomatoes highlights the question for your organisation’s supply chains. Which items are identified as critical for finished products? The BBC reported that UK authorities said the tomato shortage would last a few weeks and was due to cold weather in Spain and North Africa, which was … Read More
Logistics strategy to cover the longer five-year term
Strategy for changing your supply chains Supply Chains are not managed. Instead, they respond to events and decisions at each Node and Link in each supply chain. A response is therefore ’emergent’. This requires that functions within your organisation’s Supply Chains must respond to emergent situations and adapt their approach to the affected supply market. This adaptability must extend to … Read More
Operational Logistics strategy for two-year improvement
Two strategies a better approach The role of Logistics is to provide Availability of products and services for customers. To provide Availability requires the management of inventory – incorporating policy, planning and control. Without effective management of inventory, investments in automation are wasted when handling and moving unnecessary inventory. Change takes time. Organisations need time to move from an initial … Read More