Forum: Supply Chain Article Library

Unit 1 Basics of Supply Chain Management Download the 10 lesson extracted to one file Lesson 1

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The most ubiquitous packaging materials are of course bubble wrap and peanuts. The pros and cons of both are well documented, but the most important thing to know is they are typically made from plastics (as in oil) and are not bio-degradable. With the amount of bubble wrap and peanuts used around...

Reduce Freight Costs: First off - the reality is a lot of freight invoices are incorrect, so they all should be checked. Mileage calculation errors are common and the complexity of fuel surcharge matrices mean that the applicable surcharge changes week to week. Do a spot check of some invoices...

In the old way of thinking, companies were used to buying, building, and maintaining their IT infrastructures despite exponential costs. SaaS gives companies an alternative to those headaches. Now, a company can plug in and subscribe to services built on shared infrastructure via the Internet. The...

As originally published in Supply Management June 24, 2010: As volatile markets send shockwaves through the economy, Bradley A Feuling examines the implications for the Chinese supply chain In the past two years, the world’s supply chains have endured significant instability. Commodity...

Compared to the roads, Mexico has a good rail system, extending across most of the country BY SHIFTING freight from trucks to rail, chemical shippers not only save on transportation costs, but also reduce highway congestion and pollution. A Chemical products are among the top US exports to Mexico....

Intermodal transportation is a hot topic these days as chemical shippers look for ways to reduce costs, carbon footprint and freight safety concerns. When considering the merits of intermodal transportation, chemical shippers should also consider the benefits offered by ISO tank containers...

As companies evaluate new ways to reduce freight costs as well as their carbon footprint, alternative transportation mode options should be considered when moving freight long distances. While trucking remains the most dominant mode of shipping product domestically, intermodal freight transport...

What supply chain functions are currently outsourced within your organization? Today, the current economy has presented a variety of opportunities for businesses to outsource many supply chain functions and responsibilities traditionally done in-house. Business process outsourcing (BPO) is...

The right ecommerce order fulfillment solution helps ensure that your operating plan, sales and marketing efforts are working toward a common goal, so you can take your business success to a whole new level. Your goal in enlisting an order fulfillment partner should be to reduce operating costs...

In the old way of thinking, companies were used to buying, building, and maintaining their IT infrastructures despite exponential costs. SaaS gives companies an alternative to those headaches. Now, a company can plug in and subscribe to services built on shared infrastructure via the Internet. The...

Last year, ocean freight rates increased dramatically as ocean carriers tried to recover from devastating profit loss. As carriers reduced capacity by taking vessels out of service, space on existing vessels became very limited. As a result, shippers had to pay rates higher than contracted to...

Chemical shippers contract 3PLs to gain additional resources, technology and assets unavailable in their own logistic departments to optimize and automate supply chain operations. More than vendors who merely provide certain contract services, 3PLs should serve as long-term partners in helping...

About half a century ago, the transportation marketplace was heavily regulated. Motor carrier bills had to be paid within seven days and rail within five days. Seeing an opportunity for new business, many banks began to offer freight payment services. Chemical shippers contracted these services...

The global supply chain is inherently a process of many handoffs to a variety of service providers who must expertly and timely execute their functional responsibilities to i nsure the successful coordination of an international shipment. Assuming no major bottlenecks occur during the management of...

Over the past 15 years since NAFTA liberalized trade between the United States and Mexico, over the road (OTR) trucking has become the most popular—and most challenging—method of moving raw materials into Mexico. Several factors contribute to the difficulties United States companies face when...

As originally published in Supply Chain Asia January/February 2010: In every supply chain there is a fixed range of profit to be shared by all contributors. From raw material to finished product, direct input costs and value added transformations dictate this range. This is the basic supply...

The economic downturn is prompting chemical companies to evaluate different cost savings tactics to improve their financial stability. New focus is being placed on the transformation of fixed costs into variable costs as a means to reduce excessive overhead while scaling resources to meet market...

The decline of freight rates over the past year in all modes of transportation offers logistics departments in virtually every industry an opportunity to reap significant savings. Shippers who have not rebid or renegotiated freight costs over the past year should strongly consider doing so now...

THE ECONOMIC downturn is prompting chemical companies to evaluate different cost saving tactics to improve their financial stability. New emphasis is being placed on the transformation of fixed costs into variable ones as a means of reducing excessive overheads while scaling resources to meet...

I hope this is of interest. By a colleague, Ian Robins. What is Slotting and why is it an important productivity tool? Slotting is the shorthand term for the process of allocating product, (SKU’s), to locations in the warehouse according to business rules and product characteristics. It is...

Freight negotiations don’t need to be like poker games, where only one side can win the pot. Negotiation is something logistics professionals will be called upon to conduct many times throughout their careers. It comes with the territory. Successful negotiation is essential in business –...

Guide to Selling Ex Works Ex Works enables the buyer to take control of the transport, it’s mode and associated costs such as cargo insurance and is one of the most common incoterm terms of sale used globally. EXW – EX WORKS The seller places the goods at the disposal of the buyer. ...

Supply Chain Strategy Development (presented at recent Logistics Bureau event) Effective supply chain strategies are essential to the performance of most businesses. Surprisingly, many businesses, even at the top end of town, have supply chain strategies that are misaligned to the business...

As originally published in Supply and Demand Chain Executive June/July 2009: For the last 10-15 years, China’s prominence has grown in manufacturing. FDI continues to flow inward, albeit at a slower pace today. Exports continue to be an important driver for the economy, but are rapidly giving...

Published in LAA Dispatch Newsletter July 2009 Working Capital Optimisation in the Supply Chain Introduction This short article will explain what working capital is and how to make best use of working capital in the Supply Chain. It will provide useful tips for businesses to apply that...

As originally published on IndustryWeek.com, April 6, 2009: China’s manufacturing sector over the past 15 years has been fueled by competition. Increasing local and foreign demand has proliferated opportunities for profit creation. More recently, cost and quality have influenced inter-industry...

Everyone is talking about the BDI (Baltic Dry Index). Analysts with absolutely no shipping knowledge and referencing it, cab drivers are talking about it and mum and dad investors mention it in the same sentence with property prices and school fees. So what's the scoop on the BDI and why is...

As originally published in BusinessForum China, March/April, 2009: The continued expansion of the world’s supply chains highlights how interconnected global business has become. Many people and communities influence a product between the raw material supplier and the end-customer. The influences...

As originally published on IndustryWeek.com, March 3, 2008: The question of quality is a growing global debate. Government discussions are increasing over inspections and product safety. Meanwhile the business world grapples with internal QC and supplier auditing. The question is a worldwide...

As originally published in BusinessForum China, July/August 2008: As China has opened to Western influences, both local and foreign demands have necessitated that the cold chain infrastructure is expanded – albeit at different speeds. On the one hand, with growth in industries such as frozen...

As originally published in Shanghai Business Review, September 2008: Rapidly rising costs for raw materials, labor, and transportation combined with currency movements signal imminent changes in China’s manufacturing landscape. In response, Western customers are rebalancing risk by raising the...

As originally published in Supply Chain Europe, July/August 2008: The gap between Chinese manufacturing cost and overseas price points is closing. With increasing input material and labor costs, companies around the globe are losing competitive advantage. Asia Pacific Directors are feeling the...

As originally published on IndustryWeek - Connecting Manufacturing's Leaders, May 5, 2008: Few companies consider the impact of supply chains on their brand. In some cases, brand loyalty may be lost due to stock-out. In other cases, consistently long lead times equate to poor performance and...

As originally published on IndustryWeek - Connecting Manufacturing's Leaders, November 19, 2007: Nov. 19, 2007 -- When companies first entered China nearly 30 years ago, cost was the primary driver. In one sense this hasn't changed. A large number of companies still compete on price. Many soon...

We are constantly told by Real Estate companies that the three most important elements of any real estate purchase are location, location, location. But does this really hold true for industrial real estate and in particular distribution centres (DCs) and warehouses? I would like to argue….not...

This short article may be of interest. Or at least it might generate some discussion! Warehousing Contracts – The Options Introduction The outsourcing of Logistics services continues to be a growing trend, and can encompass a very broad range of services. This article will focus only on...

Just some thoughts. I hope this will be of interest. Third party warehousing contracts – Heading North or rapidly South? As I sit at the Airport awaiting my flight, I ponder over the meeting I have just had with yet another company, who is dissatisfied with their Third Partly Logistics (3PL)...

Hi, I hope this is of interest. Just my thoughts on the topic. Cost To Serve – The devil is in the detail. Most companies fail to recognise the true profitability of their customer and product/services mix. Traditional reporting methods aggregate revenues and costs, to the extent that...