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Achieve Supply Chain Optimization with New Technology Solutions
With ever new coming technology platforms and solutions one such service in the field of supply chain management is provided by New Generation Logistics, Inc the leading supply chain consulting, managed services, and technology company with launching their comprehensive supply chain optimization planning service OptiNet™ Network Optimization which is integrated with FreightMaster TMS®.
This new solution provides an executive with facilities to model an existing business network sitting along with other members of the team. As in today’s competitive and dynamic business environment companies of all ranges looks out for a feasible method to plan their supply chain network more effectively and convulsively.
The OptiNet ™ Network optimization services links the company’s modeling software tool with current transportation lane costs from FreightMaster TMS® along with NGL’s analytical expertise to evaluate current, alternative and “green field” network modeling scenarios.
The system thus consisted this way performs many tasks in overall optimization of the process and techniques and improves in areas like Minimum overall cost calculation, increasing production quantity at each of the manufacturing plant., exact allocation of products to different plants and warehouses. And a customer needed this technology, can use this service on ‘as needed” basis, like as quarter, annually or as a part of their client’s strategic planning process.
Subscribe to the comments for this postHow to gain edge in Green Supply Chain management?
A new movement is taking place now days among corporate organizations around the globe that is known to be as Green movement. The popularity of green movement among companies is for a number of reasons. The companies of the current time consider green movement not only a very important segment of their corporate values but also very good receptor of opinion form its customers, employers, partners and the community at large. By following certain guide lines a company can create a better niche market for itself in establishing green supply chains.
1. Develop buy-in process throughout the enterprise.
2. Select out the best procedure for vendor selection.
3. Make processing efficient so their may be complete focus on strategic issues.
4. Design a role model for supplier community.
5. Religiously follow and support strategies once they are made.
The proper implementation of points in strategies as discussed above certainly help your company to have greater control and visibility in the Purchase-to-Pay operations. This will help purchasing and accounts payable professionals to provide important financial information to business units. The green supply chain not only increases your reputation in corporate responsibility but also have great winning combination for the companies of 21st century.
Business Management Tool from Microsoft
Recently Microsoft has released Microsoft Dynamic AX 2009 as an adaptable business management solution which has inbuilt capabilities and performances for multisite organizations to streamline processes, reduce operational costs, manage compliance, and drive informed decision - making across organizations
This business tool is ascribed as very helpful in tackling complexities of managing business with acute insights and standardizing functionality of operations across multiple locations. According to spokesperson of Microsoft, the Dynamic AX 2009 lets its users to easily manage complex financial and supply chain processes across teams and locations.
This tool is amazing in running multiple legal entities from a central location and at the same times it is capable of providing single snap of the supply chain information from facilities all around the world as platform for simplifying global planning. The solution when integrated with Microsoft Office Performance Point Server can offer advanced planning and reporting scenarios.
In the words of Ray Wang analyst firm Forrester commented,
“Microsoft Dynamics products should be on ERP selection shortlists for a variety of SMBs, especially those using Microsoft’s server-based products.”
Smaller Player is the weakest supply chain link - said a Recent Report
The recently released report by European consumer affairs minister’s Meglena Kuneva on 5th June 2008 entitled as Evaluating Business Saftey Measures in the Toy Supply Chain, in Brussels has pointed out that Small European Importers and Chinese manufactures are the most potent safety threat in manufacturing sectors.
This report is presented as European Commission’s follow up to its Stocktaking review, in autumn 2007. This need for the review aroused after the evaluating, the strength and weakness of the existing mechanisms as to ensure product safety in Europe.
This report which is generated after a five-month long analysis of safety measures in the toy supply chain has highlighted many areas which are felt to be considered and pondered over to reach at credible policy and standard for safety cautions. The research and thus appropriated report has finally outlined that it is not the final testing of the product but also a quality culture through out the entire product supply chain is guarantee for good quality assurance. And this report, however, has significant results as for the progress made by Chinese authorities and manufactures.
As mentioned in the report, the small European importers and traders and small Chinese manufacturers have become weak link in the product safety chain due to there inability to cope up with the compliance in regard to applicable legislation and standards. The other weak point that has been noticed is the variation of expertise that is presented at member states enforcement practices and testing laboratories.
The other important reason as for being deviated from the security norm is following US market Standards and failing to comply with the European norms and standards. However, in this report nearly more over 50 recommendations are provided to strengthen the current system for ensuring toy safety.
Latest Trend in Global Supply Chain Management
With the shift and change in International scenario of business infrastructure and strategy, the Global Supply Chain Management does also requires change in its basic tenants and procedural application to accommodate itself with running trend and regularly with international standards and norms.
There are many policies which adopted, radically, can bring about big changes in international scenario of Supply Chain Management. In the series, the first one is:
Implementation of Time Bound Strategies Based on Collaboration: Collaborative Planning, Forecasting and Replenishment (CPFR) is a new standard as employed by suppliers and retailers to improve forecasting and bring out the best while through the replacement of products. This is thus more focused on to integrate and reduce uncertainty and increases products supply. Quick response is a strategy adapted to give instant results in just-in-time strategies to the retail sector. This is quite different to traditional supply chain with an advanced design cycle and a lengthy manufacturing and shipping cycle.
Zara is enlightenment to the supply chain manufacturers as in Spain, they, merely take 10 to 14 days to design; produce and deliver produce garments to retail store, instead of 3 to 4 months for its competition.
Change in Pattern for Customer’s Demand: With the span of time, the customer’s priority is also changing with span of time they have started asking for on time delivery with variety of products and packaging with increased level of quality as well.
Influence of Global Sourcing: Lower Production or purchasing cost as due to under impact of Global Sourcing has certain increased costs is supply chain like transportation, warehousing and inventory costs. You will get gateways congested as well that will complicate the matter even more and for worse. According to a survey, only 42% of Canadian companies earned profit while outsourcing to production to China.
Role of Third Party Logistics: With changed International Scenario the Value-added distribution centers have become talk of the time. They can do all pick and pack, labeling, kitting, special packaging or co-manufacturing. The market share of Third Party Logistics has risen over to $ 10 billion in 1990 to around $ 120 billion in 2007.
Business Intelligence And Data Mining, The Latest Trend For Business Forecasting
In a latest trend as observed by the US market, the SMBs (Small and Medium Businesses) are looking at and have started adopting BI (Business Intelligence) method and software tools in planning the business strategy for enhancing performance of the areas like sales and business forecasting thus for increasing revenue and profits. The use of Business intelligence thus has helped them to better understand the positive driving forces for their businesses.
In United States there are nearly 6.3 million SMBs of which 98% are SB (Small Businesses, with staff up to 99 members). This projection came into the focus after a recent survey done by New York- based Access Markets International (AMI) Partners, Inc on United States SB & MB IT assessment. Companies, in order to reach at some decisive node go through extensive data mining process.
The survey report also projected that about 9% SB companies that are pc intensive using Business Intelligence in form of packaged software in comparison to the 37% of Middle business companies.
“PC-enabled SBs in the US are interested in running BI on their consumer data to drive and monitor performance against the competition,” says Nichelle McKenzie, New York-based Research Analyst at AMI-Partners. Further on according to this report about nearly 16% of SBs and 22% of MBs in the America uses Business Intelligence or data mining for generating revenue. The most of the BI is used by SB companies as in ERP/CRM module.
The other factor that lets a company to use BI is the consideration that existing software may not be able to work adequately. BI and data mining software help in statistical forecasting, predictive modeling and problem solving methods to provide strategic information about business positioning.
DHL Express plans to restructuring its operations in United States
In a very crucial move in international logistics and supply chain management, the Deutsche Post World Net, the parent body of the DHL express announced in a press conference on 28th May at its headquarter in Bonn, Germany that the significant reduction in DHL Express’ US operations is in its plans. This announcement at the press conference put an end around all the speculation as about the future of DHL in United States. However, DPWN denied that it is not in mood, completely, closing down operations in US market.
In a series of initiative announced at DWPN press conference for improving infrastructure of DHL one is to jointly work with UPS ( United States Parcel Service) on $10 billion contract to airlift capacity and reduce costs in its ground infrastructure operations, though contract is still undergoing through progress.
DPWN informed that under this contract UPS will provide airlift for DHL Express U.S. domestic and international shipments from airport-to-airport within North America. Presently, DHL is using ABX Air and Astar Air Cargo for these services. This change will help DPWN in a way that it would have from now onward s single airline partner in the United States.
As about the far reaching impact of this restructuring DPWN told that this will reduce aviation costs through outsourcing to UPS thus help to streamline infrastructure by reducing and closing down U.S stations in low density and remote areas and reducing pick up and linehaul delivery routes and ground linehaul sectors by 17 and 18 percent, respectively.
The other benefit of this partnership as expected by DPWN is its deliverance of services to more rural part of the United States with the Help of United States Postal Service. As for its operations and expansion the DHL has invested more than $ 3 billion into the America since 2003 including $ 1.2 billion in infrastructure and distribution, however, according to a Dow Jones report the total loss for previous four years for DHL was $ 3 billion.
Supply Chain Innovation Networks- The Strategy for a Company to Follow Select One
While in their yearning for better methods of supply chain management, the companies in surge of better sources of creativity are now looking for talent beyond their customized Research & Development labs. They have started seeking and sharing information with networks of independent investors, scientists, academic researchers and intermediaries who work as contact person between researcher and companies. This pool of talent is known as supply chain innovation networks.
These networks as an intellectual asset work as linking with companies to solve problems and find ideas thus becomes an integral part of the organization to bring about new thought and product ideas into the market.
There are many reasons for the companies to go for outsourcing intellectual pool for the purpose of research and new growth ideas and seek assistance from pool of networks. One of the most exciting trends which have been witnessed recently is that 35% of the patents in the world are now attributed to small entrepreneurs. This means that small group of researcher and scientist are now getting due recognition after collaborating with small group of companies.
However, a company needs to follow a certain steps and measures to design, develop and run a participatory innovation network. First answer for the question why a company is looking for external participation and collaboration form an external research firm could be for seeking answer to a problem or to build an idea or to develop new innovative ideas.
After seeking answer to the problem why a company is looking for the intellectual pool of network, the next step is to reconstruct and design architecture to tap the potential of these intellectuals. The design architecture depends on a companies need for searching for strategic intent of the company and the level of control that it seeks over an outsider pool of intellectuals.
Here a company can adopt for any of the models for control like highly centralized network, a community oriented network or a democratic type of network. After the control model, the next important step in this system is infrastructure model. It includes the clear budgets for commercializing those ideas, which come through tying up with pool of intellectuals to bring about new ideas in productivity and world culture.
Thus supply chain innovation networks are emerging as very successful pattern for new ideas in industrial growth.
RIFD tags come to the rescue of Supply Chain management in troubled times
Supply Chain Management has long been at the mercy of traditional systems of inventory management. Therefore one had no options but to accept inefficiencies that formed a part of the entire deal. Today however technology has come to the rescue of organizations that want to work more efficiently and in a more cost effective way. Radio frequency identification (RFID) tags combined with wireless communication and sensors have ushered in the era of seamless end-to-end solutions.
RIFD tags are actually sand grain sized microchips that are attached to an antenna. This antenna sends out a signal when it is in close proximity to a sensor. This eliminates the need for manually registering the items that reach the warehouse. This also helps to keep a count of all the items in the warehouse. Apart from this the tags also enable the manager to identify damaged or expired or even near expiry products. Most clerical and labor intensive work in the warehouse is cut down to bare minimum which translates in to appreciable cost savings. Webpro News reports:
Greater warehouse efficiencies are possible due to greater accuracy in order fill rates, faster inventory turnover, and increased customer satisfaction.It is easy to track lost or misplaced products, thus enhancing security.
Product review: ASW - IBS enterprise software
ASW is a fully web-enabled system for companies with a focus on sales, distribution and flow-oriented manufacturing. It is being referred to as a software that truly understands Supply Chain Management. It is functionally rich and is apt for companies that have very specific demands for fast and safe supply chain operations.
ASW - IBS enterprise software offers holistic solutions for effective supply chain management along with customer relationship management, collaborative sales and procurement, order fulfillment, etc. Users of this solution have experienced a variety of benefits including reduction of costs, shortening of lead times, reduction of inventory and improved customer service. The software solution also benefits key operations such as warehouse management, alert-based event management, business intelligence and after-sales service. Companies that have implemented the software have received the direct benefit of increased profitability due to increased sales.
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