My boss at the consumer goods corporation in the Philippines where I worked a long time ago told me the company didn’t need warehouses in the provinces. A central warehouse in the national capital, Manila, would be enough. The field salespeople in the provinces disagreed. Having provincial depots assured on-hand inventories of finished products forContinue reading “Central vs. Depots: A Case of a Seemingly Straightforward Solution to a Seemingly Straightforward Problem”
Tag Archives: executives
What is the Aim of Serving Orders?
The CEO of the consumer goods multinational put me on the hot seat. “Why aren’t we serving these pending orders?” He pointed to the pages of computer printouts on the conference room table. I didn’t understand why I was the only one there. Where was the chief supply chain officer or the logistics director? ItContinue reading “What is the Aim of Serving Orders?”
Inventory: When It’s More of a Problem Than It is an Asset
Inventory consists of items owned by enterprises and which flow through supply chains. Items include raw & packaging materials, ingredients, parts, components, assemblies & sub-assemblies, work-in-process, and finished products. People aren’t inventory nor are equipment or assets which enable the transformation, storage, handling, or conveyance of items. Inventory typically also does not include operating supplies,Continue reading “Inventory: When It’s More of a Problem Than It is an Asset”
What is the Problem in the First Place?
I went to a branch of a local drugstore to buy a small bottle of mosquito repellent lotion. The branch didn’t have any stock but the nice lady behind the counter checked her computer and told me to go to another branch which was a short five (5) minute walk away. I went to theContinue reading “What is the Problem in the First Place?”
What the Supply Chain Must Be
There are many things we like supply chains to be. Popular examples are resilient, sustainable, and agile. For some of those at the end of the chain, they’d simply want them to be dependable or on time, especially when it comes to deliveries. And for many supply chain professionals, they’d want vendor supplies to beContinue reading “What the Supply Chain Must Be”
Dedicate, Not Commit
Commitment is placing the highest priority to another. When people marry, they commit; they promise to put their partners above everything else. Enterprises try to enrol employees to do the same. Managers expect subordinates to place first-priority to their jobs. I don’t commit to employers; I dedicate. Dedication is compliance to mutually agreed contracts. FocusContinue reading “Dedicate, Not Commit”
The Supply Chain Surrounds Every Product
The enterprise sells, its customers order, and the enterprise delivers. This constitutes the basic process of demand fulfilment. As the enterprise creates demand through marketing & sales, it fulfils it. The enterprise and the customer agree on the terms and conditions of the latter’s order. Delivery of the order should arrive at the right place,Continue reading “The Supply Chain Surrounds Every Product”
Arguing for Engineering
Engineers have been the go-to people to solve problems or implement pre-decided solutions. Engineers build edifices architects design, install equipment which executives prefer, and fix things that were creating problems no one else could solve. Engineers deal with the complicated technical stuff like designing rockets and constructing skyscrapers, repairing nuclear reactors, setting up oil drillingContinue reading “Arguing for Engineering”
The Four Types of Supply Chain Relationships
How do you want your supply chain relationships to be like? Supply chain relationships consist of the connections between enterprises such as those between enterprises and their vendors, service providers, and customers. They also include the interactions between internal operating groups within enterprises, such as purchasing, inbound & outbound logistics, manufacturing, and planning. There areContinue reading “The Four Types of Supply Chain Relationships”
The Changing & Un-Changing Supply Chain
Since Keith Oliver and a Mr. Van ’t Hoff coined the phrase in the 1980s, supply chain management has evolved from an obscure middle-management responsibility to a high-echelon business priority. Supply chains had become hot topics in executive suites and business school lecture halls. At the same time, operations managers face endless enigmatic problems asContinue reading “The Changing & Un-Changing Supply Chain”
Ellery's Essays 