Productivity as a part of your business. Achieving substantial improvements to the supply chains and logistics of your business is not a five minute exercise. Productivity improvement always involves managers actually managing; that is, allocating resources to achieve the desired outcomes. And that can mean people changing their role in the business or being retrenched – always a difficult exercise. … Read More
The total cost of your low cost items may be high
Know the Total Cost of Ownership for items. Are you thinking about outsourcing the manufacture and delivery of a product, or renewing a current outsourcing contract? For manufacturing items, you may think of China or other countries in north or south east Asia. Why? because production costs are considered to be lower. Labour costs are still a dominant feature when … Read More
Government policy can affect your supply chains
When governments want to make money. Your business has shipped through a port for many years. Suppose the port is owned by the government and they have decided to substantially increase the rent paid by stevedores. The reason is to make the port attractive for sale to private operators. Of course, to cover the rent increase, stevedores will increase their rates … Read More
Buying from low cost countries has supply chain risks
Another case of problems with international suppliers. Companies that buy items internationally, which become products sold through retail stores have many risks. A big risk is that the media, including social media, will uncover any misdeeds and ‘cutting corners’ by your business and your international suppliers. And you will get all the publicity you do not need! Examples of problems … Read More
Bad products are not worth supply chain & logistics costs
Know your imported products supply chain risks. If your business imports products, there are additional supply chain risks, depending on the country, that must be identified and managed. In Australia, frozen berries (strawberries, blueberries, raspberries etc.) are being pulled this week from home larders, school canteens and supermarket shelves. The reason is Hepatitis A, contracted when consumers eat the thawed … Read More