Why are you not using S&OP? In business, we live (and die) by financial results. The Profit & Loss and Balance Sheet tell us the financial result of our actions for the past period(s). My question for clients is why financial budgets, with all their defects, is the only tool used for looking forward. For more than 30 years, Sales … Read More
Demand and supply risks at logistics service providers
Risks with commodity services. Many people work in or are affected by the volatility of markets for commodities and commoditised services. The challenge for Procurement professionals and Logisticians is to understand (and plan for) the state of a supply market at a point in time in the future, recognise the associated risks and attempt to mitigate them. Supply markets and … Read More
There are capacity constraints in your operations
Planning is critical. For the flows of materials and money into, through and out of your business to be effective, they must be planned. Planning is a core capability of a successful business; without it, staff become reactive to events. This looks good as a ‘can do’ attitude, running around to ‘put out fires’, but it is an ineffective and … Read More
Logistics strategy needs a defined process to succeed
Logistics Strategy relies on the Business Plan. Logistics, like other functions in your organisation requires a plan to operate against. Importantly, it should be a part of the One-Plan process shown in the diagram, whereby each stage of planning is linked to others, so there is traceability of information and data. To start the Logistics Strategy planning process, the inputs … Read More
Your Business Model will influence the Business Plan
Inputs to your Business Plan. There is not a ‘best’ way to design your Supply Chains and plan Logistics operations. It depends on multiple elements, including the business model, approach to markets and geographical locations, industry type, products and processes. But, you can use the ‘One Plan’ approach for a structured way to identify the Supply Chain objectives, structure and operations … Read More