The future is not far away. Changing your Logistics patterns usually occur when it has to be done – but that is when your competitors are also likely to be changing their Logistics. With more businesses competing for the new environment, prices increase. The alternative is to think ahead and consider what could happen and whether changes to your business … Read More
Commercial capabilities of Procurement professionals
Emphasis in project supply contracts. Your organisation has decided to buy a new ‘something’ (factory, distribution centre, IT system) that will cost a lot of money. Where should the emphasis be placed when negotiating supply contracts for the new project? Good advice has come from the head of technical information for Crossrail, the new underground east-west rail line across London, … Read More
Value Network replaces Supply Network – fact or fiction
Value Network – the in term. To get readers’ attention on either the screen or page, it helps if the topic being written about appears to be ‘new’. Using the term Value Network is an example, with it gaining favour in articles and commentary that discuss availability of goods and services for customers and consumers. Is this because authors are tired … Read More
Logisticians pleased with fall in freight rates – maybe
Volatility in ocean freight rates. Volatility in freight rates is not new. The fall in container shipping rates continues a two year decline. As the current rates (especially Asia to Europe) are likely to be loss-making for shipping companies, something will give. Demand-supply in the market will regain balance and all will be right – but will it? Most major … Read More
Build your inventory plan for a profitable business
Setting inventory policy. A Supply Chain manager will view performance across three aspects at the inventory policy level: customer service levels by inventory category/class; inventory turnover rate and the resulting operating profit. If this is done, inventory will not have to be managed against a financial target established in the annual budget. Instead, the inventory plan will be based on … Read More