Cut costs to get a better business I read this week of more businesses cutting costs – a copy of what so many businesses do when the going gets tough. This may gain favourable articles in the business media and shows shareholders that management is doing something. In addition to retrenching employees, favourite cost reduction actions are to: outsource non-core activities … Read More
Mixing up a value chain and a supply chain
Using the right term. If you are telling a story about climbing a mountain, you would not use the term ‘descending the mountain’ when talking about going up the mountain. But when it comes to logistics we are not so sure about the terms to use. I have read articles this past week where the authors talk about value chains. … Read More
Think about Supply Chains and Logistics as Strategic
Innovation in your supply chains. You cannot cut your business to glory. There comes a time when being smarter is the better option. After some seven years of hearing and reading about re-organisation and retrenchment as a solution to business challenges, is it the right time to invest in smarter supply chains? This thought was triggered by a recent report … 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
Good ideas to improve supply chains do not always work
A new supply chain idea of ten years ago. Demand driven supply network (DDSN) was a new concept in 2004, but no mention is made ten years later. Why is that? Surely a DDSN is what all right minded businesses should aim for. The design of DDSN was developed from the supply chain challenges of the early 2000s: distortions downstream … Read More