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How 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.
Subscribe to the comments for this postBusiness 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.
DHL to Man NHS Supply Chain
– By Pushpa Sathish, Staff Writer
DHL Logistics is doing its bit to aid the efforts of the English National Health Service (NHS), a unit of the UK Government’s Department of Health. According to a 10-year, 1.6 billion GBP deal inked by the two organizations, the logistics firm will manage and run the NHS Supply Chain, a subsidiary of the NHS Business Services Authority, and take care of all procurement and logistics aspects for 500,000 products to be transported between 600 hospitals and healthcare providers in England. The move will provide NHS Trusts access to innovative, high-quality products, besides creating more than 1,000 new jobs. While DHL is more than happy with the monetary arrangements, NHS is pleased that it can dedicate more of its resources to patient care. Shipping Line reports:
The range of products NHS Supply Chain will manage encompasses a wide range of goods including key supplier and maintenance contracts, food, bed linen, office equipment, stationery, cleaning products, patient clothing, medical and surgical equipment (such as operating theatre equipment and machinery) dressings and provisions.
Supply Chain Management software helps Morphy-Richards
Morphy-Richards has recently installed a new supply chain system and they are already very happy with its performance. The software had been installed last year. The idea was to manage and track items as they traveled through the supply chain. Even though the integration has only recently been finalized, cost savings are already beginning to show. Although the company was managing their logistics fairly well before the installation, the new system has given them an edge.
With the new software in place the company can now process stock movements and track stock far more effectively. In the last 12 months alone the company has made substantial cost savings. This was declared by the IT director of Morphy-Richards, Trevor Burrows. He added that the company has also observed significant productivity improvements of their warehouse operations.
Sterling Commerce acquires Nistevo
Sterling Commerce recently announced that it has completed the acquisition of Nistevo. Nistevo is a leading provider of on-demand transportation management systems (TMS) and Sterling Commerce is a subsidiary of AT&T Inc. Along with the acquisition, the company also announced the signing up of a new customer for TMS - Insight Network Logistics.
By acquiring Nistevo, Sterling Commerce will now be able to provide customers with a complete, state-of-the-art supply chain management system and that too from a single vendor. This will enable a company to have complete visibility of the entire supply chain from order to shipment. Nistevo has a remarkable reputation of having a carrier community of more than 6,400. As such it has been known as leading on-demand network for transportation management that enables shippers and carriers to view, plan, execute, settle and analyze all their inbound and outbound transportation. IT Backbones reports:
The addition of the transportation management capabilities to the portfolio delivers an integrated end-to-end solution that will enable companies to have improved visibility and control over their entire supply chain, resulting in improved customer satisfaction and loyalty.
Supply Problems Cause Revenue Loss
Delayed product shipments are contributing to a loss in gross margins and revenue at SR Telecom Inc. The Canadian provider of mobile technology for broadband networks is facing supply chain problems as a result of outsourcing manufacturing operations.
The company’s new president, Serge Fortin, is confident that there will be a marked reversal of fortunes by the end of the year. All supply chain problems are expected to be sorted out, and deliveries will occur as per schedules. As cost-saving measures, unprofitable product lines and business units were discontinued. This helped re-establish supplier credit and get the supply chain back on track.
SR Telecom announced that it had reduced its net loss at the end of the second quarter by fixing supply problems from its contract manufacturers. The company’s net loss improved to $17.3 million during the three months ending June 30, from $30.7 million a year ago.
Pelion Systems and Infor Join Hands
The growing need for solutions to be integrated to create various processes more flexible and create situations ideal for smooth information flow between the factory units and ERP systems has led to many partnerships . The latest is the Pelion System and Infor Automotive North America for providing the automotive manufacturers room to breathe easy.
Pelion Systems is known for its lean operations management solutions and Infor is a leading global enterprise software provider of business solutions for manufacturing and distribution industries. The consortium has been aimed at offering customers a new integrated lean manufacturing solution based on the Pelion software platform. Now on Infor customers will have access to specialized manufacturing execution capabilities through Pelion which will enable them to readily ‘lean-out’ their production facilities. This will also add further to their need to realize full value of ERP and supply chain solutions
Infor is relying on Pelion’s proven track record for helping automotive customers build and sustain lean programs and expecting it to provide a major boost to Infor customers. That expectation will put Pelion in pressure to deliver at any cost. Infor solutions will be constantly eyeing the lean operations management solution for creating an agile and responsive supply chains for meeting its ever increasing and exacting delivery requirements. The integrated offering will enable automotive and discrete manufacturers to realize better operational performance and customer service, shortening the delivery cycle times.
According to research unless proper technology tools are implemented, lean initiatives often fall short of delivering optimum benefits. True, but who said technologies can’t go wrong, even if chances are minimal.
QAD to add power to Visteon-Shanghai
QAD Inc. is delighted with Yanfeng Visteon Automotive Trim Systems LTD deploying its enterprise software applications - QAD GXE. Reason to be happy comes from the fact that Yanfeng Visteon is a joint venture between SAIC Motor Corporation Limited and Visteon International Holdings Corporation. The former is one of China’s largest automotive manufacturers while the latter is one of the world’s pre-eminent automotive component manufacturers, which is also the leading supplier of spare parts for cars and trucks within China.
QAD being the leading provider of enterprise software solutions for global manufacturers has clinched this crucial deal to enable lean manufacturing operations and achieve exceptional inventory and manpower efficiencies for the joint venture entity. The QAD’s services would enable Yanfeng Visteon with crucial reductions on material inventory with further downsizing in stock space; services would improve data for logistical support and personnel savings.
It has been experienced in US that auto and truck manufacturers who are going for joint-venture faced with challenges on reducing costs on inventory, achieving greater productivity rate, and meeting requirements which are associated with sequencing of assembly projects. The Yanfeng Visteon aim of getting cost cum competitive benefits will come with critical advantage over other Chinese companies, feels QAD.
It has to be understood that most companies would promote their services through efficiencies that can’t be matched by other enterprise solutions providers but constant developments in software applications leave room for arguable speculation.