Archive for the ‘Supply Chain Visibility’ Category.

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Supply Chain Tips for Retailers

November 11, 2009, 12:51 pm

Inbound Logistics published a feature story a couple of months ago containing supply chain advice for retailers, namely: consolidation and collaboration. The article uses Stein Mart as an example of how supply chain consolidation can improve overall efficiency. Until recently, carriers were dropping off merchandise directly from vendors to Stein Mart locations daily, and it was up to the employees at each location to remove packing slips from each carton, enter data into the system, and do a count verification – all very time consuming. Now, Stein Mart uses three (soon to be five) consolidation centers operated by third-party logistics providers. Carriers pick up merchandise from the vendors, deliver to the facilities, where they are sorted and shipped to three distribution centers. There, workers attach tickets, check for missing hangers, and ship off to Stein Mart stores around the country. Each Stein Mart now receives shipments one to two times per week.

According to Stein Mart’s VP of Supply Chain, in the Inbound Logistics article, they have gained savings in transportation costs and store efficiency:

The first gain that Stein Mart expects from this consolidation strategy involves transportation savings. “We get the benefit of lower rates inbound from vendors to consolidation points via LTL or truckload, as well as savings from moving shipments in truckload quantities to store distribution centers,”Schart says.

The second benefit is greater store efficiencies. “This strategy allows for much larger consolidated store deliveries, which lets us schedule receiving staff in a more focused way,” he says.

The benefits and cost savings of implementing a strategy such as Stein Mart’s can be tremendous (the article states that Stein Mart estimates the initiative will save $20 million in 2010!). But with additional parties  now involved in the supply chain management process, it becomes more important to ensure that suppliers, vendors, forwarders and carriers all have access to the data they need when they need it. This can be complicated by the realities of the global network: multiple trading partners, all with different information systems and data definitions, and information that can flow at unpredictable times. Using a supply chain visibility software solution can address the complexity of the global network with the capabilities needed to provide users with consistent, reliable, and timely information.

Please go here to read the full Inbound Logistics article: Refashioning Retail Supply Chains

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Download Case Study: See how one company, Glazer’s Family of Companies, uses Management Dynamics Supply Chain Visibility solution to access real-time data on shipment dispatches and warehouse receipts. Users can now better manage safety stock levels at each distribution centre, avoid expediting and reduce domestic transportation costs.

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General Motors Taking Steps to Improve Supplier Relations

November 11, 2009, 9:46 am

At a conference this month, General Motors VP of Global Vehicle Engineering Mark Reuss stressed the importance of developing and maintaining good relationships with suppliers. According to an article on ReliablePlant.com,

GM recently has taken several steps to improve supplier relationships, including revising its supplier cost reduction suggestion program to let suppliers keep a larger share of savings generated from cost reduction ideas that are implemented. In addition, GM recently announced that later this year, it will begin paying direct material suppliers weekly instead of monthly. This move will allow suppliers to better manage their cash flow and reduce the need to borrow money to run their businesses.

When an organization has healthy communication with their suppliers, they are better able to tap into the suppliers’ industry knowledge, and come up with new ideas for products, services, and ways things can be run more efficiently and cost-effectively. It is important to set up a collaborative two-way relationship that can deliver value to both parties.

Related to this, is the importance of establishing a way to measure supplier performance. (Curious about the distinction between supplier relationship management and supplier performance management? Check out my blog post from a few months ago on the subject.) 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.

Management Dynamics’ Performance Management solution integrates with our 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.

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CTDI Reduces Corporate Risk with Management Dynamics’ RPS On-Demand Solution

November 10, 2009, 2:11 pm

Technology Services Company Improves Trade Compliance with Comprehensive Screening of Restricted Parties

EAST RUTHERFORD, NJ — Management Dynamics, a leading provider of Global Trade Management (GTM) solutions, today announced that Communications Test Design, Inc (CTDI), a full service global engineering, repair and logistics company, implemented its RPS On-Demand solution, an advanced risk management solution that screens individuals and businesses to identify prohibited transactions based upon over 90 restricted party lists. Since automating restricted party screening, CTDI has significantly reduced corporate risk and improved compliance with global trade and security regulations while minimizing time and resources required for screening.

Providing repair and logistics services for major Telecom and Cable service providers and OEMs, CTDI also provides the service of screening shipments for many of its customers. CTDI needed to streamline its screening process across multiple order management systems and 25 locations. The company selected Management Dynamics’ RPS On-Demand solution for its functionality, ease of use, and ability to centralize its compliance with multi-org and team-based workflow to enable its global branches to easily manage their own customer shipments.

“We needed to prevent any illegal transactions with restricted entities or trade parties and avoid potential fines and penalties for CTDI and its telecom customers. We had previously relied on a fragmented, incomplete process,” said Greg Pugh, Global Compliance Manager, CTDI. “Management Dynamics provided the best value and came highly recommended by many authorities in the trade industry. It was also very important that the screening did not create a cumbersome distraction during high volume shipping processes. Since using the RPS On-Demand solution, we have significantly reduced our corporate risk, liability and exposure to prohibited transactions.”

Available on a flexible, on-demand architecture, Management Dynamics’ RPS On-Demand solution addressed CTDI’s needs with a secure, comprehensive method to automate screening of its customers, vendors, and other trading partners against all restricted party lists from governmental institutions worldwide. With improved screening algorithms based on computational linguistics, RPS On-Demand delivers at least a 30 percent improvement in screening accuracy with a 70 percent reduction in false positives over traditional methods. The Web-based solution integrates with any enterprise system and can be quickly and cost-effectively implemented.

“Today, exporters are held to a higher level of accountability to meet government mandates than ever before,” said Jim Preuninger, CEO of Management Dynamics. “CTDI uses our RPS On-Demand solution to centralize and streamline its compliance process to improve productivity and effectively manage supply chain risk.”

About CTDI
A premier Telecommunications service company headquartered in West Chester, PA., CTDI has provided groundbreaking maintenance and product service solutions to the global telecommunications industry since 1975. Today, CTDI offers the most comprehensive Service Portfolio in the industry that includes: Wireline Repair & Logistics, Wireless Repair & Logistics, Engineering and Installation services, Global Supply Chain solutions and Product Engineering and Manufacturing. Today, CTDI services Original Equipment Manufacturers (OEM) and Carriers with 42 international strategic repair and logistics locations supported by an experienced team of over 4,500 telecommunications professionals. For more information, visit www.ctdi.com.http://www.managementdynamics.com/html/rl_wp_rps.html

Learn More About Restricted Party Screening
Download our white paper, Six Best Practices to Improve Compliance With a Restricted Party Screening Solution, and gain a better understanding of how to select and get the fastest return from your screening investment.

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New Report Shows the Negative Effects of Outsourcing and Expanded Supply Chains

November 4, 2009, 8:33 am

Over the past few years, we have seen companies outsource more and more, and as a result supply chains have grown more complex. The goal of this outsourcing was to reduce costs – if a manufacturer can get their supplies cheaper by using an outside source, then of course they are going to go with the most economical decision. The more a company outsources, the more complicated their supply chain becomes, and according to a new study released by the Business Continuity Institute, the greater the risk for supply chain disruption. The manufacturing industry in particular has been the hardest hit from supply chain failure – manufacturers have reported a 58% increase in disruption to their supply chains over the last 12 months, compared to 35% across all industry sectors.

The reason for this increased supply chain disruption is because if more parties are involved in the supply chain, there is a higher risk for one of those parties having a problem, such as financial failure, and causing issues for the entire supply chain.

According to one director at the Business Continuity Institute, quoted in the press release,

“We’re now seeing the downside of years of outsourcing, extended supply chains and focus on core competency; organizations are now much more vulnerable to supply chain disruption than in the past. While companies have banked the cost savings, this research indicates they have still to make the corresponding investment in resilience. The economic recession, in particular, is exposing vulnerabilities and dependencies through supplier insolvencies, reduced capacity and the tightness of credit markets. Business continuity management provides a robust and proven approach to prepare an organization for and protect against disruption in its supply chain.”

Communication among suppliers, forwarders, carriers, customs brokers, and all trading partners involved is very important to avoid the risks associated with a complex supply chain. For tips on how large, mid-market, and small companies are improving their supply chain performance, please read the Aberdeen Group’s Global Supply Chain Benchmark Report (free download!).

A summary of the above BCI report is available for download here, and the press release can be found here.

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PWC Study Offers Predictions on Supply Chain Evolution Over the Next 20 Years

October 22, 2009, 11:51 am

PricewaterhouseCoopers and the Supply Chain Management Institute recently did a study, Transportation & Logistics 2030, which looks at how supply chains will evolve over the next 20-plus years. The first volume of the study, the only one that has been release so far, is an analysis of the ramifications of energy scarcity and its impact on the design of future supply chains.

Here are a few key findings:

  • Oil prices will increase and so will the use of alternative fuels, however neither are likely to revolutionise T&L – but the need to track, document and allocate costs for emissions just may.
  • Patterns of individual mobility vary in different regions; however concerns about cost and carbon footprints will spur individuals to reduce holiday and business travel and consume more locally produced goods.
  • Supply chain design, including the location of production sites, will need to take energy and emission costs related to logistics processes into account. There will be no reverse of globalisation, but many supply networks will be established at a regional level.

Volume 1: How will supply chains evolve in an energy-constrained, low-carbon world?, along with further details and methodology for the study, is available for download here on PricewaterhouseCoopers website.

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Going Green and Cutting Costs

October 21, 2009, 1:00 pm

To stay with this week’s theme of establishing an environmentally-friendly supply chain, here are a few more tips from Logistics Management on going green while at the same time cutting costs: Green logistics: Industry expert cites ways of going green and cutting costs at the same time. In the article, supply chain expert Jack Ampuja discusses strategies such as redesigning packaging and logistics systems, and the effect that oil price fluctuations can have on supply chains:

Right now, Ampuja said, the smart companies are working on “what if” plans for oil prices at $100, $120, or even $150/barrel, ready to implement when and if prices go that high. With each plan, companies have to think about how many distribution centers they have, how efficient the routes are between them, how they manage inventory to feed those routes, and other issues.

“The (plan based on) $150 oil is going to give you a different network than $80, I guarantee,” he said.

Another area that companies need to revisit is packaging optimization. Ampuja said packaging can cost companies much more money than it needs to, and use too many raw materials. Companies that cut packaging down to size can cut as much as 40 percent of their shipping costs.

While there has been a buzz across the industry about the environmental sustainability issue for quite some time now, I have noticed that press coverage on the topic has picked up significantly in the past few weeks. Many of these articles, including the one above, cite presentations that various supply chain experts have given at industry events (a lot of big industry events and conferences are held around this time of year). To me, the fact that this has become such a recurring theme among industry experts is an indication that in upcoming months, “going green” will start to become the norm, and not just a competitive advantage that companies can have, as their customers will start to expect it.

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Video: Walmart’s Supply Chain Emissions

October 21, 2009, 11:52 am

Here’s a video I found that explains how Walmart plans to track supply chain emissions in order to provide carbon footprint information for all of their products. This follows up on a couple of blog posts I’ve made recently on this topic. Enjoy!

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GTM Research Study: Environmental Sustainability Expected to Have a Direct Effect on Customer Relationships Within Three Years

October 21, 2009, 8:06 am

A recent survey conducted by GTM Research on 74 supply chain executives had some surprising results. Interestingly, sustainability is not at the top of the list of priorities – it falls in the middle of the pack. Companies are still investing in this area though, and the quest for energy efficiency is more popular than any other sustainable supply chain activity this year. Three fourths of respondants feel that their company’s environmental stance will have a direct effect on customer relationships within three years. Approximately one third feel it is a issue with customers today.

The below chart from GTM Research shows what their respondants believe will be the most influential supply chain activities in the next 12 months, for industry leaders and laggards:

Source: GTM Research

Source: GTM Research

To read more on the study findings, please read the press release from GTM Research. SupplyChainBrain also has a nice summary of the findings on their website.

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Like What You See on SupplyChainVisibility.org?

October 20, 2009, 2:00 pm

While this blog is focused on all things related to supply chain management, Management Dynamics also maintains a few other blogs you might be interested in, on an array of topics. Go check ‘em out!

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Looking to Go Green? Start With China: A Follow-up Post

October 20, 2009, 12:43 pm

In last week’s post about greening the supply chain, I referenced an article that suggested starting with overseas suppliers (specifically those in China) to increase the supply chain’s energy efficiency. The article also discusses how Walmart has established a supplier energy efficient program in China, where the company has set a target of improving the energy efficiency of 200 factories by 20 percent over the next three years.

Today I found a bit more info on setting up a sustainability program such as Walmart’s. This article from Logistics Management explains that the benefits go beyond being good environmental citizens:

“Shoppers are looking for a good deal, but they also expect transparency,” she said. “They want to know that retailers are sensitive to global warming and other threats to future generations.”

Regina Edwards, director, supply chain compliance, for MeadWestvaco, concurred, stating that shippers were asking for “green” metrics placed on suppliers.

“Given the fact that we are so diversified and global, our leadership realized that we had to develop a principal code of conduct for suppliers that included more than just basic compliance,” she said.

It would not surprise me if, before long, going green becomes standard operating procedure, rather than something companies implement when they can.

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