According to the 14th Annual Third-Party Logistics Study, which was conducted by Capgemini Consulting, both shippers and 3PLs are reporting that their current IT provider is not giving them the tools they need to measure performance:
Nearly nine in ten shippers (88 percent) said that IT-based logistics services are important, but only 42 percent said they are satisfied with the capabilities of their provider. As a result of this IT capability gap, the study authors said, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain, and 3PLs reported similar difficulties in getting the data and commitment they need from shippers.
Global supply chains are complex, inter-connected systems that must be managed by establishing key performance indicators, measuring the process, analyzing results and developing strategies to continuously improve performance. Unfortunately many supply chain teams struggle to access data in multiple sources and formats and do not have access to the latest business intelligence tools.
Management Dynamics has a Performance Management solution that integrates with our Global Trade Management (GTM) solutions to access the wealth of operational data that is available in supply chain visibility and across key export, import and trade agreement processes which span from order to final delivery. Users across various functions can access Performance Management to run Web-reports or manage key metrics through scorecards.
Each department can then access their performance monitoring reports to manage service providers such as suppliers, forwarders, and brokers as well as manage critical process cycle times. By sharing operational data and inter-linking metrics across compliance, logistics and procurement domains, supply chain managers can make better data-driven decisions and manage cash-cash cycles.
Best-in-class companies have been able to realize the following benefits after implementing Performance Management:
Shift from tactical decision making to continuous improvement programs based on Lean principles
Restructure supply chain and proactively manage business partner SLAs
Access one aggregated source of cleansed data with all key dimensions
At this year’s CSCMP Annual Conference, a panel discussion was held with John Coyle of Pennsylvania State University, Bud LaLonde of Ohio State University, and Don Bowersox of Michigan State University, to discuss what will be needed now and in the future for supply chains to evolve and contribute to economic growth and corporate sustainability. Everyone offered some interesting views, and in case you were not in attendance, Logistics Today has posted up some of the key take-aways from the discussion.
A common theme among the panelists is that global supply chains and supply chain best practices are constantly changing and evolving. As prices, transportation rates, market volatility, current economic states, and a number of other variables fluctuate, it is necessary to tweak your supply chain strategies in order to optimize your network. To do so, it is important to remain flexible and open-minded, and keep in mind that what worked a year ago may not be the best solution today.
Please visit Logistics Today for more information on this discussion.
Although analysts are reporting that economic recovery is just around the corner, there are still significant risks associated with this recovery. Companies who have laid off employees and reduced spending in areas such as IT investment will face a tough road ahead. In a recent study done by AMR Research, 44 percent of executives surveyed believe the biggest risk in 2010 will be recovering from the recession.
According to the study:
Respondents said they believe the recovery cycle is the biggest risk in 2010 because of potential commodity price increases, limited internal skills after workforce reductions, and problems meeting new demand with constrained capacity, low inventory and transportation constraints.
This re-enforces a point we’ve been trying to make here over the past few months – although many organizations may be facing major budget cuts across the board, IT spending, specifically in the supply chain, is one area that you cannot afford to make cuts in. Using a technology solution to ensure near real-time visibility into the status of orders, shipments and in-transit inventory can help save you money by avoiding expensive expedited shipments, reducing fees associated with detention, demurrage and per diem.
Free AnalystReport: For more tips on how technology can help you achieve optimal supply chain performance, please read this Global Supply Chain Benchmark report from the AberdeenGroup.
The complexity of export control regulations for European and Swiss companies are rising fast. Already, we have seen heavy fines, and even personal liability, for corporations who have failed to comply with these regulations.
Management Dynamics would like to invite you to be our guest at the Complying with Export Controls Seminar at the Four Points Sheraton in Zurich, Switzerland, on November 11, 2009. This one-day FREE seminar will cover various topics pertaining to best practices in the area of Export Compliance, including:
Export controls in foreign trade
Benefits of trade export automation
Global trade management best practices for Swiss companies
Presentations and discussions at this event will feature contributions from:
Martin Grob, School for Internationale Business, Zurich
Christine Frankenberger, DKSH (Schweiz), Zurich
Dieter Wintergerst, ABB Schwiez AG Baden
Nick Boland, Management Dynamics, Inc., London
To register for this free event, please follow this link. We hope to see you there!
For companies who source from many different places, it is vital to company operations (especially the supply chain) that suppliers are all performing according to a certain standard. The larger the company is, and the more suppliers there are, the more difficult it can become to ensure top performances by everyone. This is where the use of supplier scorecards can come in very handy. ADT Security Services (a unit of Tyco) seems to have this down to a science. Using a 100-point system, the sourcing team at ADT rates strategic suppliers quarterly on criteria such as quality, delivery and cost, which encourages continuous improvement in supplier performance.
As shown by ADT, global supply chains are complex, inter-connected systems that must be managed by establishing key performance indicators, measuring the process, analyzing the results and developing strategies to continuously improve performance. A technology solution can help you achieve this goal by connecting frontline data with sophisticated reporting tools, giving you the insight needed to make better-informed strategic decisions and improve supply chain performance.
Management Dynamics will be exhibiting at WESCCON 2009 this Thursday through Saturday in Rancho Mirage, CA. We look forward to showing you how we can target improvements in both the top line and bottom line of your business:
Enhance Visibility and Control with a secure, centralized repository of ocean and airfreight rates and service information
Reduce Transportation Costsby comparing full, bottom-line shipment costs including all applicable assessorials side-by-side prior to booking
Increase Sales Effectiveness by empowering your sales executives and overseas agents with automating pricing tools to quickly prepare rate quotes
Close More Business with differentiated proposals that exceed your customer expectations for timely, detailed responses to their complex rate requests
To learn more, stop by booth #13 at WESCCON this week to speak with us about your global trade management needs. Hope to see you there!
At the CSCMP Annual Conference this year, the Journal of Commerce was able to pull aside Gary Maxwell, Logistics VP at Walmart, for a quick interview. In this video, Maxwell discusses the supply chain goals, expectations and challenges of Walmart, the world’s largest retailer. According to Maxwell one of the key driving forces of their supply chain are the customers. Walmart shoppers expect the stores to have high quality products at low prices, and without a well-managed, cost-efficient supply chain, this would be very difficult. Interesting insight into one of the world’s top 25 supply chains for 2009, as determined by AMR Research earlier this year. (See related post on the Supply Chain Top 25.)
If you are at the BIS Update conference this week in Washington, DC, please be sure to stop by our booth tomorrow in the exhibit hall. We’ll be at booth 21. Hope to see you there!
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