Why Resilient Supply Chains? Based on articles in the media, Resilience is now an expected capability across different industries. But what does being resilient mean and does the need apply equally across all businesses? And what steps should be taken to become resilient? Globalisation came to the fore about thirty years ago, when many businesses in developed countries were intent … Read More
Supply Chains design influenced by IPCC climate report
Climate situation The 2021 Intergovernmental Panel on Climate Change (IPCC) report has observed that human influence is the main contributor to Climate Change. However, within the report’s not unexpected findings, there is some hope. A linear (not exponential) relationship exists between emissions and the extent of global warming and there is no geophysical reason why the climate cannot be stabilised. … Read More
Procurement change from a buy cost to a lifecycle cost
Changing role of Procurement The world is experiencing changing times and a return to ‘normal’ is unlikely. Nations, communities and companies will need to review and even change their economic or business model. For commercial companies that add value to purchased goods and services, the responsibility for the revised relationships with suppliers will fall on Procurement The focus of Procurement … Read More
Value Added reflects the success of your Supply Chains
Value Added does not receive attention In a recent blogpost, the term Value Added (VA) was used. It defines the difference between the net income from the sale of products and services and the total purchase cost to the seller of materials and service inputs used to make the item. It is a measure for your organisation’s supply chains. Unfortunately, … Read More
Supply Chains cannot be ‘managed’ but better understood
Supply Chains in your business Supply Chains are not new; they have existed since people commenced trading items for barter or money; but Supply Chains cannot be managed. Instead, consider them as a description of the environment in which the activities of Procurement, Operations Planning and Logistics (your Supply Chain group) are required to operate. A supply chain is identified … Read More