There are at least 7 Practices & Solution areas where
companies can make improvements to their supply chains – optimize operations,
innovate and gain a competitive
advantage. The recent „Future Supply Chain 2016“ report from Capgemini and the
Global Commerce Initiative offers interesting thoughts and ideas for any
company. Here, key summary points with my additional views.
- In-Store Logistics
Solutions
involve improvements within the store and focus on adding value the consumer
and reducing business costs.
Examples:
- In-store visibility
- RFID technology can provide real-time insight into inventory, alert when supplies are running low or theft is detected.
- Shelf-ready products to improve replenishment and enhance visibility
- Products for the consumer in the store
- Point of Sales data (POS) available to manufacturer, retailer and data warehousing;
- Shopper Interaction
- Electronic labelling, mobile payments, mobile device marketing, in-shore kiosks and narrowcasting (to present information designed to stimulate purchases)
Solutions
involve sharing transport, warehousing and other infrastructure. Sharing and
collaboration can take place between and across various nodes of competitive
supply chains.
- Shared transport
- Collaborative approach between manufacturers, retailers and third-party logistics providers. Sharing load planning, truck capacity, etc.
- Shared physical infrastructures
- Shared warehouses and distribution centers, cross-docking
- Shared information
- Combine deliveries from more than one source toward multile locations via warehouse or distribution centre.
Logistics
designed to reprocess assets, materials, packaging, products or other
components that can be recycled, reused or remanufactured. Solutions include
traditional backhauling, product recycling, packaging reuse. It is most
advanced form it would turn into a zero waste / Circular Economy model, where
all “wastage” would enter as a new nutrious stream into the economy.
4. Demand and Fluctuation Management
It
requires new models to smooth the demand signals coming from customers. New
vertical solutions include promotion/ introduction calendars, supply/ demand
capacities to align introductions and promotions. It includes collaboration on
execution, joint supply/ demand andticipation based on real-time visibility of
physical flow of goods and consumer behaviour, joint real-time access to
results of introductions and promotions.
5. Identification and Labelling
Provides
all partners in the value chain with the ability to use the same standardized
mechanism to uniquely identify parties/ location, items and events with clear
rules.
6. Efficient Assets
Design
and use of new buildings and equipment that enhances the productivity and
reduces their environmental impact.
Examples:
- Green buildings
- Efficient use of key resources such as energy, water, materials and land.
- Efficient trucks; best routing; training on fuel efficient driving
Two
broad categories are qualitative and quantitative tools.
Qualitative:
- Capability metrics designed to measure extent trading partners (suppliers, service providers and retailers) collaborate
Quantitative:
- Business metrics to measure the impact of such collaboration
These
seven key areas can be measured and supported through KPIs. The following chart
illustrates areas, KPIs and offers best practice examples:
It is wise for companies to examine and understand the
overall environment a company is operating in. Some factors and influences can
be modified/ changed, while others are mostly out of a company’s control
(external forces). A company within its industry can impact/ influence the
Information and Product flows as well as Consumer Behaviour.
The “game” in supply chain management has changed due to
globalization and digitalization.
Today companies are competiting with each other across
industries. At the same time we see that companies even collaborate with
competitors to achieve common objectives.
Supply chains, formerly more or less stable and
formalized, are increasingly agile and fluid. The four dimensional supply chain
is born. What supply chain you have depends on the time and circumstances. The
supply chain has become a living organism. It is difficult, but possible to
tame it.
+++
To share your own thoughts or other best practices about this topic, please email me directly to alexwsteinberg (@) gmail.com.
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