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”
Tag Archives: operations management
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”
How Realistic is a Supply Chain Vision?
Many entrepreneurs have invented all kinds of applications for a variety of uses. We have apps to help in our finances, make music, learn new languages, find places we’ve never visited, make reservations, book rides, and buy tickets. The one app we (still) don’t have is the one that makes & delivers products. I wouldn’tContinue reading “How Realistic is a Supply Chain Vision?”
Five Characteristics of Supply Chains
Supply chains had become popular in the 2020’s, thanks greatly to the era of the coronavirus pandemic when our world experienced major economic disruptions in transportation, production, and deliveries. Because of aggravations such as missed deliveries, shortages, and overstocked inventories, we pledged we’d do better in managing our supply chains. But we hadn’t done muchContinue reading “Five Characteristics of Supply Chains”
Comparing Supply Chain Management versus Supply Chain Engineering
What’s the difference between supply chain management (SCM) and supply chain engineering (SCE)? Supply chain management is the management of people, structures, & systems that underlie the relationships of functions which enable the flow of merchandise & services from their sources to their destinations and users. SCMs work with existing systems & structures as theyContinue reading “Comparing Supply Chain Management versus Supply Chain Engineering”
‘I Don’t Believe in Supply Chains’
The retail owner didn’t believe in supply chain management and I don’t blame her. The retail owner runs a store that sells office supplies. Her business was hit by the coronavirus pandemic that began in 2020 but which she recovered from as soon as infections subsided and the local government lifted restrictions. The retailContinue reading “‘I Don’t Believe in Supply Chains’”
Appreciating the Value of Veteran Employees
When I was a young industrial engineer at the food production division of a multinational company, the accounting department asked me to find out why there was a large reported loss of refined coconut oil. They’re the ones we always look for when we need something. I went to the production manager and he toldContinue reading “Appreciating the Value of Veteran Employees”
The Importance of Making Available What We Promise
I ordered a box of latex gloves from a 3rd party seller on a popular e-commerce website. The seller confirmed my order by email and after 24 hours, the order status on the website was that the box of gloves was being prepared for shipment. One week later, the order status said it was atContinue reading “The Importance of Making Available What We Promise”
Paying Attention versus Getting Attention
A columnist at a leading daily newspaper writes every week about ghosts, spirits, reincarnation, or in other words, supernatural stuff. He is obviously popular as he’s been writing for the newspaper for decades. He seems to be doing well as he’s consulted for some people and spoke at gatherings. I laugh at how people canContinue reading “Paying Attention versus Getting Attention”
Behold The PSI: A Basic Tool for Supply Chain Planning
The PSI or Production-Sales-Inventory is a basic spreadsheet template for supply chain planners. It looks like this: The PSI typically has three sections: production, sales, and inventories. Production represents the in-flow of an item or what’s going into inventory. A basic example is finished goods input coming from a manufacturing operation’s output. We can alsoContinue reading “Behold The PSI: A Basic Tool for Supply Chain Planning”
Ellery's Essays 