How important is each logistics service provider to your business? Your answer will depend on a range of factors, including the value of services purchased, the number of potential suppliers and the capabilities required of the service provider. The analytical approach to identify those LSPs which are strategic to your business is to segment the LSP contracts into categories … Read More
Measure your logistics by the right numbers
What gets measured gets managed. I am sure you have read articles about ‘managing by the numbers’ and as one who commenced his career as an industrial engineer, numbers have been a large part of my life. But the question to ask is what are the numbers there to do? In worker incentive schemes that were popular fifty years ago, … Read More
Where to make and where to sell
Shutting a factory. A real life situation – you have a profitable factory established for many years in a low growth mature market – in this case, Australia. You also want to grow your business in fast developing Asia. An option is to shut the established factory, build a new factory in Thailand and supply the mature market from the … Read More
Planning your business to reduce supply chain risks
A threat to your business. The overwhelming typhoon that recently struck the Philippines is another reminder that global warming is changing climate patterns, causing larger storms. Cyclones, typhoons and hurricanes are the names given in different parts of the world for the same condition. The outcome is the same – enormous devastation over a wide area and the need for … Read More
Who will control your food supply chains?
Buying the farm. Demand for food (human), feed (animal) and fuel crops will continue to increase with a growing world population (especially in major cities), industrialisation in developing countries and rising incomes. Additionally, future reductions in the supply of oil will increase demand for plant based plastics and chemicals. Within this framework, Australia is currently experiencing some frantic manoeuvring in … Read More