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: manufacturing
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”
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”
The Challenges & Benefits of The Physical Count
A finance executive of a metals manufacturing corporation wanted a physical count of all items at the company’s plants. And he wanted it done in two (2) days. A physical count consists of a team identifying, counting, and tagging items, such as products, work-in-process, and raw materials. The purpose of a physical count is toContinue reading “The Challenges & Benefits of The Physical Count”
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 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 Good Problem
The repairman sighed. No one called; there was nothing to do. The ad said it best: we make dependable appliances. That meant that the repairmen, even though employed and salaried, had no jobs pending. They were there just in case, nothing else. It was a lonely life, and the repairmen complained about the loneliness. ForContinue reading “The Good Problem”
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”
The Benefits & Pitfalls of Commodities Trading
A commodity trader at a food company observed that prices of coconut oil, an ingredient in most of the company’s products, was forecast to trend higher. He, therefore, ordered more than two (2) months’ supply of coconut oil, buying from several vendors who offered the lowest prices. When the coconut oil price indeed increased daysContinue reading “The Benefits & Pitfalls of Commodities Trading”
Ellery's Essays 