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”
Tag Archives: supply chain management
Why Shifting from the Month-End Surge to Delivery by Demand is Common Sense
“We just have to live with it,” the General Manager replied. The GM was responding to my comment that month-end surges in sales orders were causing inefficiencies in the company’s logistics operations. I was presenting an operations assessment report to a company that distributed name-brand computer printers and accessories. One of the key observations fromContinue reading “Why Shifting from the Month-End Surge to Delivery by Demand is Common Sense”
Logistics Solutions Can Be Simple
A medium sized retailer of health food items imports products from abroad. The retailer prides itself with a very well organised warehouse and a crew of workers that swiftly repack the imported products and send them to the retailer’s stores all over the country. The retailer’s sales department, however, has constantly complained about lack ofContinue reading “Logistics Solutions Can Be Simple”
Six Elements to Find in a Digital Roadmap
A large producer of canned fruit items installed a brand-new radio-frequency identification (RFID) system at its manufacturing facility. The RFID system aimed to streamline the producer’s inventory management system. The canned fruit producer’s workers stuck RFID tags on every case of canned fruit and on the pallets where the cases were stacked. As forklift operatorsContinue reading “Six Elements to Find in a Digital Roadmap”
Reducing Losses, Whatever the Type, Whatever the Scale
Material losses happen in every industry. From the time a raw material is mined, extracted, or harvested, to the point where it finally is transformed and delivered as a finished product, there will be some loss along the way. Not all merchandise that comes into an operation comes out 100% intact in the finished product. Continue reading “Reducing Losses, Whatever the Type, Whatever the Scale”
Hoarding and How to Discourage It
When people buy a little more than what they usually need, we call it speculation. When they buy much, much more, we call it hoarding. What happens when people hoard? Do the enterprises that supply the goods gain in sales and profits? Do hoarders make money? Hoarding happens when people perceive they might not beContinue reading “Hoarding and How to Discourage It”
The Nimble Supply Chain: Is It Even Possible?
Managers like things to turn out elegant. A well-laid out factory that produces flawlessly. A warehouse with more than enough storage space and material-handling equipment. A complete fleet of trucks that delivers all the orders without delay. A smoothly running purchasing system in which supplies and materials are bought at the best price and arriveContinue reading “The Nimble Supply Chain: Is It Even Possible?”
Why Enterprises Need A Chief Supply Chain Officer
“Behind every great leader there was an even greater logistician.” -M. Cox On a trip to Saudi Arabia in 1990 at the start of preparations preceding Desert Storm, the American-led military operation to take back Kuwait from invading Iraqi forces, United States Air Force General Chuck Horner was granted only one companion to accompany him. Continue reading “Why Enterprises Need A Chief Supply Chain Officer”
Four (4) Supply Chain Scenarios and What to Do When They Change
We don’t know when it’s going to rain. So, we build dams. Dams are reservoirs, inventories of fresh water. Having a reservoir assures an adequate supply of water to meet the continuous demand of communities. Supply chain managers face a myriad of challenges in their operations. But one can categorise some of these challenges whenContinue reading “Four (4) Supply Chain Scenarios and What to Do When They Change”
What Is the Right Supply Chain Model for New Products?
A lot has to get done when it comes to launching a new product. Aside from marketing and selling, enterprise executives need to know how much to make, how much to stock, and how they’ll spread that stock. If the new product is replacing an older one, the enterprise would need to figure out whatContinue reading “What Is the Right Supply Chain Model for New Products?”
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