Capital Project Logistics Digital Logistics Loading of a thermal oxidizer at the point of origin en route to a manufacturing plant Procurement logistics consists of activities such as market researchrequirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: Advance Logistics consists of the activities required to set up or establish a plan for logistics activities to occur. Distribution logistics has, as main tasks, the delivery of the finished products to the customer.
Successful Supply Chain Cost Reduction and Management Sep 27, Cost Saving 8 comments If you were to tell me that your company had never looked at its supply chain costs and sought to deliver reductions, I would be mightily surprised.
Most companies start out with the best intentions to achieve successful and sustainable supply chain cost management, but somehow seem to lose momentum, only to see costs increase again in fairly short order. The following five mini case studies explore a few high-profile companies that have managed to sustain their supply chain cost reduction efforts and keep expenses under control.
The challenges faced by these organisations and the steps they took, may provide some inspiration for successful long-term cost management within your own organisation. Supply Chain Cost Reduction Challenges: Deere and company has a complex product range, which includes a mix of heavy machinery for the consumer market and industrial equipment, which is made to order.
Retail activity is extremely seasonal, with the majority of sales made between March and July.
The Path to Cost Reduction: The company also increased its use of third-party logistics providers and effectively created a network that could be tactically optimized at any given point in time. Supply Chain Cost Management Results: Somehow Intel had to reduce the supply chain costs for the Atom chip, but had only one area of leverage—inventory.
The chip had to work, so there were no service trade-offs that could be made. Being a single component, there was also no way to pay less in the way of duties. The only option was to try to reduce levels of inventory, which, up to that point, had been kept very high in order to support a nine-week order cycle.
The only way Intel could find to make supply chain cost reductions was to bring this cycle time down and therefore reduce inventory. Intel decided to try what was considered an unlikely supply chain strategy for the semiconductor industry: The company began with a pilot operation using a manufacturer in Malaysia.
Through a process of iteration, they gradually sought out and eliminated supply chain inefficiencies to incrementally reduce order cycle time. Further improvement initiatives included: Through its incremental approach to cycle time improvement, Intel eventually drove the order cycle time for the Atom chip down from nine weeks to just two.
Like Intel, Starbucks is pretty much a household name. But like many of the most successful worldwide brands, the coffee shop giant has been through its periods of supply chain pain.
As in most commercial sectors at that time, sales were falling. When the supply chain executive team began investigating the rising costs and supply chain performance issues, they found that service was indeed falling short of expectations.
It also opened a new production facility, bringing the total number of U. Next, the company set about terminating partnerships with all but its most effective 3PLs.
The remaining partners were then managed via a weekly scorecard system, which was aligned with renewed service level agreements.
The company grew substantially over the course of two decades, with a considerable proportion of that growth achieved by way of acquisitions.CML File Downloads: Download All CML Files Shown Here (Complete Kit) Download all the CML files shown below - Zip file contains CML Operations Manual, CML Application, CML Application Instructions, and CML Study Guide.
(CML-AllFileszip, MB, SOLE, Jun ). Reverse Logistics dealswith the processes associated with the reverse stream fromusers/owners to re-users. This paper provides a review and contentanalysis of scientific literature on reverse logistics case urbanagricultureinitiative.com sixty case studies are .
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Review the characteristics of and decision processes behind the various transport chains which supply core goods and services to, and collect returns and handle waste products from businesses in .
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