With more than 30 years experience in designing and implementing material handling and order picking systems in distribution, Holste has worked with dozens of large and smaller companies to improve distribution performance. September 27, Sorting It Out: The increases in losses were found to be largely due to the result of flat or declining retail security budgets.
Risk Management Most companies know supply chain vulnerability poses a threat to their operations, yet few perform analysis or plan strategies to minimize risk to the bottom line. Businesses can protect against disruptions by adding supply chain redundancy, says Dr. Here is his advice for strengthening your logistics operations.
Perform a supply chain vulnerability audit.
Start with your customers and the products they purchase, and work back to raw materials suppliers. Do rigorous "what-if" analysis. Identify situations that could disrupt operations and develop contingencies to overcome these scenarios.
Ask questions such as "What if we lose this supplier? Implement a strategic supply chain plan that mitigates the impact of disruptions.
The trend toward lean inventory means many contemporary supply chains are "taut" or "brittle," and therefore vulnerable to disruptions. Reconsider inventory positioning, sourcing, and transportation options to create a more flexible supply chain. Compare the cost of stockpiling inventory against the risk of losing sales and customers, and creating a negative impact on bottom-line profitability.
Too much inventory at the wrong location adds to bottom-line costs. Determine optimal inventory policies and levels to sustain your company. Make sure you have multiple transportation plans in place.
Ruptured transportation means products and parts face delays in getting to customers. You can continue shipping products to customers—if you have alternative transport plans.
Create a balance between supply chain network efficiency and operations resilience.
Take a holistic view of your supply chain to determine optimal network designs that ensure products are manufactured in the right location at the right time and will ship to the right customers. Put alternative raw materials and manufacturing sourcing plans in place. Strategic planning ensures companies have alternative parts and supply sources, along with balanced inventory levels.
Develop mitigating strategies from the C-level. CFOs and others involved in corporate risk analysis and reporting need to take a realistic view of business risk from unimaginable real-world events, which have a very real probability of occurring. Design long-term strategies as well as responses to short-term disruptions.
These include critical location, customer, capacity, raw materials, and crisis response analysis.Global Supply Chain Management Essay - Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain.
The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. Supply chain management is increasing in importance because “In today’s hypercompetitive environments in which competition is among supply chain networks rather than individual firms, firms are confronted with the need to effectively manage increasingly extending supply chain activities beyond the boundary of the firm,” (Lee, B.C., et al., , p.
). Jan 27, · Napolitano announces that the globalization of the world economy falls within her jurisdiction: The urgent need to protect the global supply chain | The Great Debate Average citizens would assume that the DHS is a U.S.-centric institution, and regardless of its [ ].
The larger a company’s supply chain, the more vulnerable the company becomes. When the company’s suppliers spread further and further away from the company, the company becomes even more vulnerable to political and currency risk, cyber attacks, missed inventory goals, and failed communication.
The Supply Chain Management Business Essay. The main objectives of this research are to structure a supply network through multiple tiers. It extends in identifying the importance of Supplier relations management.
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished.