Complexity causes another headache. Supermarket chains and brand companies in 16 Europe are responding to a supply chain problem. Frozen meat products have been found to contain more than 60 per cent horse meat and that certainly does not agree with the statements concerning ‘pure beef’ on the packaging! Removing product from shelves and contracting with replacement suppliers is a … Read More
Your profitable retail channel mix
Retail has always changed. Archie Norman, who led ASDA supermarkets in the UK through the 1990’s recently remarked that the UK is a world leader in on-line food shopping with home delivery, but the channel is not profitable. While consumers like the idea of on-line shopping and free delivery, the reality of retail is that the most costly part is … Read More
The value of logistics to your business
Write-down by Rio Tinto. We rarely have an opportunity to put a value on logistics, but recent reports have shed some light on what logistics can be worth to a business. In 2011, one of the world’s largest mining companies paid U$4.2b for a coal mine in Mozambique. Last week they wrote the value of the mine down by U$3b. … Read More
Influencing governments about logistics
What has been happening? This week I was discussing with colleagues the ‘state of play’ concerning promotion of logistics as a profession. Our conclusion was that nothing much has been achieved in the past thirty years. In Australia there are five associations concerned with aspects of supply chains. For planning there is APICSau; for transport it is CILTA; distribution has … Read More
Do not rely on sales growth for your profits
Plan your business. With most countries of Europe and America in a situation of either recession or no growth, many businesses will not experience an increase in sales. But for businesses in all regions of the world, profitability can be improved through a focus on improving business flows. Flows consist of items, money and information and too often they are … Read More