Improve the productivity of materials. My previous blog discussed price volatility for hard and soft commodities. This situation is unlikely to change, being influenced by factors of supply availability and disruptions, plus spikes in demand. The flow on effect of volatile raw material prices is that producers must take action to protect their businesses, as materials are a high percentage … Read More
How do you measure productivity in logistics?
The price of commodities. Australia has an open market for fuel. The price of petrol at service stations can change each day; sometimes by large amounts – last week the price increased in one major city from $1.23 to $1.46 per litre. So what has this got to do with logistics? Oil is a hard commodity, like iron ore and … Read More
Change your work style in logistics
Work and flexibility. I was recently talking with a sales representative from a freight forwarder and noticed that his mobile phone was not switched off for our conversation. I asked if the mobile phone was also on in the evening and he replied that the phone was never off and that he was expected to respond whenever it rang. For … Read More
How weak are your supply chain links?
What are your risks from a disruption? A recent report by Zurich Insurance in England indicates the potential supply chain challenges for businesses in many countries, including yours. The study, of 500 businesses across multiple industries with sales to 300m UK pounds (U$471m), showed that supply chain challenges remain high. Concerning supply chain performance; 80 per cent of respondents said it was very important … Read More
Your strategy is yours
Logistics strategy for your market. An interesting question was recently asked of Sir Terry Leahy, the retired chief of British retailer Tesco. The question related to the penetration of private label items as a percentage of total sales. His response was that in the UK, private label had acquired a reputation with consumers, through the policy of retailer Marks and … Read More