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”
Tag Archives: manufacturing
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”
What Do We Do with ‘Bad Orders?’
One of the most irritating things in supply chain management is handling returned items from customers. We spend plenty of our precious time & resources trying to get rid of them. ‘Bad orders’ or BO for short are otherwise known as unsaleable merchandise or trade returns. BO is a commonplace term in the consumer goodsContinue reading “What Do We Do with ‘Bad Orders?’”
Avoiding the Wrong Supply Chain Strategy
One mistake enterprise owners make is to use the wrong supply chain strategy for their products. The effects can be costly. The following are some true-to-life cases: A large steel manufacturer hires an executive who formerly worked for a multinational beverage corporation. The executive identifies 120 best-selling finished product items based on historic demand andContinue reading “Avoiding the Wrong Supply Chain Strategy”
Building the Supply Chain at Both Ends
A supply chain essentially has two (2) ends: the suppliers (e.g., vendors, service providers) and the customers (e.g., clients, consumers, users). We who manage our businesses work both ends at the same time as our suppliers see us as customers and our customers see us as suppliers. We multitask as both suppliers and customers. InContinue reading “Building the Supply Chain at Both Ends”
The Real Value of Demand Forecasting
“We start our planning with the forecast.” This is what I’ve heard in the last three (3) organizations I’ve engaged with. These three (3) organizations often started their Sales & Operations Planning (S&OP) meetings with a comparison of forecast versus actual sales data. In most cases, the actual sales data didn’t come out close toContinue reading “The Real Value of Demand Forecasting”
Collaboration: The Secret to Supply Chain Success
It’s hard to find a supply chain success story. Either there isn’t any or enterprises would prefer to keep it private, not wanting to share any secret they consider proprietary. Some so-called experts (ones like me who write blogs and claim they are) say companies like Apple, P&G, Walmart, and Toyota are supply chain successes. Continue reading “Collaboration: The Secret to Supply Chain Success”
Burning the Midnight Oil & the Work-Life Balance Myth
Not a very long time ago, people avoided working at night because they didn’t have enough light. But for those who did have to work at night, they had to make do with whatever source of light they had. Up to the early 20th century, people had little in the way of light after dusk. Continue reading “Burning the Midnight Oil & the Work-Life Balance Myth”
I Build Supply Chains, So What?
“We do not share a common definition of supply chain management across the industry. Just take a look at the various professional associations to which you belong. Procurement organizations and logistics associations alike claim supply chain management as their expertise. And to be fair, APICS, which defines supply chain management from end to end, hasContinue reading “I Build Supply Chains, So What?”
