By Michel Ramis, VP Sales and Marketing
Over the last few years, globalisation and digitalisation have encouraged global companies to redesign their strategy and to look for new ways to make a difference in order to remain competitive among their market and to improve their productivity at the same time. What if the answer to this challenge was obvious but the executives forgot to think about it?
In every multinational company, a function is too often under evaluated, even though, thanks to this function, executives would be able to better control their profitability objectives. This crucial function, which can create additional value for the company, is the Supply Chain.
According to a recently published study from Capgemini Consulting , 75% of operational executives consider that Supply Chain (and its digital transformation) is a major issue for the company. The Supply Chain is a core activity that integrates all the product flows and the information regarding logistical processes: from raw material purchase to final products delivery. Nowadays this function only occupies an unnoticed position in companies, comparable to an ancient art that only a few chosen seem to be able to master: the Supply Chain managers. Yet, the ‘Supply’ function must be rethought and considered as a determinant factor of the productivity and savings race for companies. Companies can no longer consider Supply Chain only as a support function but rather as an executive function.
As Downward Pressure on Economic Growth Continues, Supply Chain Leaders Summit held by FuturMaster attracts professionals’ attention
On June 2, 2016, the Supply Chain Leaders Summit hosted by FuturMaster was held in Shanghai. The summit, with the theme “Supply Chain Planning: A New Profitability Driver”, included seven keynote speeches and one high-level panel, with speakers coming from L’Oréal, Heineken, Danone, BearingPoint, etc. Hundreds of Supply Chain and Operations executives from more than 80 companies attended this summit, from domestic and overseas companies such as Prada, COACH, Lenovo, Boston Scientific, ZTE, Nestle, Nike, BSH, Groupe Rocher, etc.
China’s economic downturn has had an enormous impact on the real economy. Many companies have shown decreasing trends in turnover growth. In these challenging times, in order to maintain profitability growth and increase revenue, businesses are required to put the optimization of supply chain systems and improvement of operation processes as top priorities. Continue reading
Every company wants to achieve Supply Chain excellence by delivering the right product to the right customer at the right time, and more importantly, at the lowest cost.
Like kryptonite is to Superman, many supply chain experts struggle to achieve this excellence with many facing these decisions:
- How to accurately predict the future demand in a rapidly changing market?
- Which distribution center should I use to fulfill the demand?
- What is the optimal stock level to ensure on-time deliveries and to avoid wastages?
- How to allocate the demand to the optimal plant?
- During peak season, should I pre-produce, use overtime or outsource?
As if making the above decisions are not difficult enough, there are risks involved: Continue reading
Did you know that after Halloween, Easter is the biggest candy consuming holiday. 120 million pounds of candy are bought each year!
With Easter just around the corner, one might start to wonder how will these Easter goodies ever reach customers in time for the Easter holidays?
Will there be a case of missing out the Easter Bunny? The answer lies in innovative supply chain management.
There are many components interdependent at every stage of the supply chain process.
The supply chain plays a crucial role in getting those perfect Easter candies across continents, over many kilometres to reach you. Companies, such as Fox’s take steps to minimise delays and maximise freshness of the candies, such as the Easter Eggs. What steps are supply chain management companies taking to ensure this?
1) Decisions, decisions, decisions
In every supply chain, many decisions need to be made. How many Easter candies should be produced during this Easter period, which resources need to be used, when and what is the right quantity to supply where to etc. The consequences of these decisions are extremely important and the stakes could not be higher: fulfil customer’s demand, increase service level, ensure freshness of the products, increased turnover, decreased cost of production, purchasing and call-off strategies, transportation, reduction of working capital requirement etc.