We encounter lots of problems with supply chains. But how serious are these problems? How do we as managers prioritise which problems we will put most of our time and resources into? When the World Health Organisation (WHO) declared the coronavirus COVID-19 pandemic in mid-March 2020, governments immediately restricted the movements of people and merchandise. Continue reading “We Need Engineers to Solve Supply Chain Problems, Not Managers”
Tag Archives: purchasing
Value Chains, Supply Chains, & Our Wrong Mindsets
Michael Porter introduced the Value Chain model in his seminal book, Competitive Advantage,1 in 1985. The value chain broke down activities of the firm (the enterprise) and how they collectively contribute to the value of products & services. How well activities perform and interrelate would manifest in the margins, which are the difference between valueContinue reading “Value Chains, Supply Chains, & Our Wrong Mindsets”
What Our Customers Expect
What do our customers expect from us? The Total Quality movement from the 1980’s preached that the people we work with are either “suppliers” or “customers.” We played the role of either one. The idea of TQM was to do the right thing right the first time when we, as “suppliers,” serve our “customers.” WeContinue reading “What Our Customers Expect”
The Supply Chain Orchestra
In August of 1990, Iraq invaded Kuwait. The United States of America led a coalition of nations to counter the invasion via a military campaign that started with Operation Desert Shield and then with Operation Desert Storm. In November 1990, General Fred Franks, Jr., commander of the US Army VII Corps, deployed the Corps’ fiveContinue reading “The Supply Chain Orchestra”
Developing the Right Demand Fulfilment Strategy
A large fast-food chain hired executives from a fast-moving consumer goods (FMCG) multinational. The owners of the fast-food chain wanted the best and the brightest and they thought that the former executives from the multinational FMCG would best meet their expectations. They were almost right. The former executives spent a lot of time revamping theContinue reading “Developing the Right Demand Fulfilment Strategy”
Supply Chain Engineers Have Much to Offer
‘There were nearly 2.2 million mentions of “supply chain” on Twitter in the fourth quarter of 2021, some five times more than in any quarter in 2019, before the Covid-19 pandemic…’ Global supply chains were a mess in 2022, so it seems when one reads any business news article or video that year. SinceContinue reading “Supply Chain Engineers Have Much to Offer”
The Pros & Cons of Steady-Stream Supply Chains
The two (2) managers of the large multinational consumer goods corporation coined it steady-stream. Both managers, one from sales and the other in charge of orders processing, agreed that the constant volume rushes every month-end were not acceptable. It would be more beneficial to have a smooth flow of supply rather than a spike atContinue reading “The Pros & Cons of Steady-Stream Supply Chains”
‘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’”
The Path Towards Becoming a Supply Chain Expert Begins with Basic Competency
Sometimes identifying a problem is not in observing what’s going on; sometimes it’s noticing what’s not there. In my blog, “Where are the Supply Chain Experts?”, written last March 2020, I wrote there were no supply chain experts seen working side by side with business and government leaders in solving supply issues at the heightContinue reading “The Path Towards Becoming a Supply Chain Expert Begins with Basic Competency”
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”