Supply Chain Strategies

Looking for ways to improve the efficiency of your supply chain? Here are some ideas from Craig Voortman, director of the department of transport and supply chain management at the University of Johannesburg. His remarks are from the October 2005 CSCMP Conference in San Diego.

Use technology imaginatively.
Whether it’s experimenting with oversized aircraft (such as the new Airbus A380) or using robots to package and move pallets, world-class companies apply originality and flair to logistics.

Close the lead-time gap.
“Everything is becoming urgent,” said Voortman. Therefore, it is essential that every process in a supply chain be lean, fast, and efficient.

Boost employee productivity through technology.
Voortman cited the example of a pharmaceutical company whose sales reps can dial into their hubs from anywhere in the world, at any time, and obtain instant access to the product data and instructions they need.

Invest in innovative packaging.
One company in South Africa uses simple black plastic wrap to ship diamonds; the bar code alone contains the “secret” of what the product is. Another firm, a beer manufacturer, applies peel-off labels to beer bottles to cut down processing time.

Waste nothing.
According to Voortman, “world-class companies have zero waste” because they employ inventive recycling to reduce costs across the entire supply chain.

Provide company- and job-specific training.
Too much of corporate training is “generic” — it does not address the company’s unique objectives. Training should be highly practical and goal-oriented, Voortman said.

Source – Rama Ramaswami – Operations + Fulfillment

Freight Forwarders – A Dime a Dozen?

What really sets one forwarder apart from another? For the most part they all have comparable services, serve the same key lanes, can move a box from point A to point B with relative ease (well at least most of the time), and can do so for approximately the same price. So what is it that truly distinguishes one from another? Well according to a recent report by Logistics Today magazine the answer is:

First, there’s always an advantage in bundling capacity, planning capacity and consolidating cargo — the traditional role of the forwarder. Second, Scheibner suggests greater involvement in the supply chain — the forwarder as supply chain integrator and consultant.

I would also add that the level of service provided by a 3PL plays a crucial role in rising above the competition. For the most part 3PL‘s are non-asset based and they don’t sell a commodity; they are service providers. In looking at service from a 3PL, I tend to look at how pro-active they are in terms of providing information. It’s one thing to find out that your shipment is late after the fact and another receiving a call from your provider advising you of a potential delay and what alternate plans are in place if necessary.

I’m sure that traditional forwarders (box movers) will always exist in one form or another, however the forwarder that evolves into a company that provides service and added value at every step in the supply chain will be able to thrive and compete in this global economy.