eCommerce drives storage sector expansion The drivers of productivity improvement are technological advances in machines, infrastructure development, more efficient organisations and investment in human capital through education and training. But, in developed economies advances in technologies appear to have not transferred to increased productivity over the past 20 years (measured as gross domestic product (GDP) per hours worked). This has … Read More
Segment items and suppliers to provide a structure
Disruption and the traditional approach For reasons outside the control of individual organisations, supply markets are being disrupted and in some cases, distorted. Procurement professionals need to be aware of the potential concerning increased risks at suppliers (and where possible, their suppliers). The result will be different approaches to the various supply markets and suppliers. In some industries, suppliers are … Read More
International Trade Logistics changes for the future
Renewed focus on International Trade Logistics How will global trade evolve in the future? With current geopolitical manoeuvring between countries, vaccine nationalism and disrupted sea and air trade lanes, it is difficult to forecast. But changes will occur and it is Logisticians that should interpret possible scenarios. A low technology item, such as apparel, sold in a developed country will … Read More
Forecast ‘error’ affects Inventory in Supply Chains
Not ‘better’ forecasting Volatility in demand increases as more product lines are introduced that appeal to niche consumers; so ‘better’ forecasting becomes more difficult. The alternative approach is to analyse how your inventory should be managed. Based on the analysis, build a decision structure for inventory and so better manage the stock keeping units (SKUs). In the previous blogpost, it … Read More
Improve your supply chains through segmenting inventory
Uncertainty in supply chain elements Support from the Finance and Accounting group within your organisation is vital for the effectiveness of Supply Chains. A step in gaining support is through segmenting the elements of your organisation’s supply chains into categories for improved management. The main elements within a supply chain are customers, finished goods inventory and service parts (when applicable), … Read More