There I was. The shipping manager of a multinational consumer goods corporation. Pending orders were piling up. Sales & marketing managers were calling, asking, and following up why shipments weren’t arriving at stores. The manufacturing lines were running. The warehouse was full. The shipping department was loading trucks. Why weren’t orders being served? There wasContinue reading “Seeking Success from Order-to-Delivery Systems”
Tag Archives: logistics
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?”
Lost Opportunities are Unsolved Problems
A company was stuck in a vicious cycle. The company delivered orders late. Customers did not pay right away for deliveries received, citing the tardy arrivals of their orders. The ensuing tight cashflow caused delays in purchasing and importing critical raw materials. Manufacturing could not make products on schedule. Logistics, therefore, could not deliver pendingContinue reading “Lost Opportunities are Unsolved Problems”
Inventory Record Accuracy: A Step to Supply Chain Improvement
Managers of a large food condiments manufacturer bragged that their finished products Inventory Record Accuracy (IRA) was 99%. They added that they met this level constantly, not just when I as a consultant was there auditing the manufacturer’s supply chain operations. How do you compute the IRA? I asked the warehouse manager. The warehouse officeContinue reading “Inventory Record Accuracy: A Step to Supply Chain Improvement”
The First Step is Always the Hardest
“The journey of a thousand miles begins with a single step.” In building a supply chain, that single first step can be a doozy. When we construct a home or facility, the first thing we think we of doing is plan. Seek a site. Draft a layout. Determine our budget. Schedule the construction. But thatContinue reading “The First Step is Always the Hardest”
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”
Knowing Your Inventory ABC’s
A business owner asked me: how can I manage my company’s inventories more efficiently? The business owner imported soap, luggage, and cell phones, in short: assorted merchandise. He shipped in and kept hundreds of items in inventory, in which he had trouble keeping track. Sometimes he had too many items in storage or had tooContinue reading “Knowing Your Inventory ABC’s”
The Need to Change the Supply Chain
When a parcel arrives at my doorstep, I see myself at the end of a supply chain process—a process which involved multiple operations from procurement, manufacturing, to logistics. But I could care less. What mattered is I got my parcel and the items I ordered. The individuals in the respective supply chain processes which enabledContinue reading “The Need to Change the Supply Chain”
Ellery's Essays 