SOLUTION Submitted by Rohit Deoghare Subhamoy Biswas REDUCE COSTS AND INEFFIENCIES
The holy grails of supply chain management are
high speed and low cost, to reduce costs and inefficiencies ABC logistics should adopt following:- Focus on labour costs- Introduce Carousel systems for small to medium sized parts/equipment. Decreases freight costs through better truck utilization in both full (FTL) and less than truckload (LTL) shipments. A Transportation Management System (TMS) will help optimize freight to utilize the most effective lanes and routes Regionalize networks:- Have more suppliers or facilities closer to the company Switch to slower and lower cost modes of transport Build inventory buffers by maintaining a stockpile of inexpensive but key components Weigh near sourcing vs. far sourcing Apply Six sigma to improve the process and minimize variability OVERALL VISIBILITY The aim of end-to-end supply chain visibility (E2ESCV) is to provide controlled access and transparency to accurate, timely and complete events and data — transactions, content and relevant supply chain information — within and across organizations and services operating supply chains.” ABC should adopt following technique to increase overall visibility throughout the supply chain:- Open lines of communication among all parties involved Processes need to become more collaborative, with data sharing and planning being done across departments as well as between organizations. Invest in technology:- The way to drive better visibility is to invest in the technology infrastructure and resources to gather and act on necessary information for example RFID, Bar codes, Live camera feed, etc. Know your customers:- Enhanced visibility penetrates supply chains in many ways, so it is important to identify all stakeholders in any business process improvement effort Evaluate needs of ultimate consumers- not just immediate customers Lay down roles, tasks, and responsibilities clearly for suppliers and customers Draw up contingency plans and develop crisis management teams Every quarter companies should hold a supply chain visibility meeting to talk about situations that are occurring in their organization and to also update their monitoring programs. ACCOUNTABILITY PROCEDURES AND MEASURES FOR SUPPLIERS AND CARRIERS
Manage sustainability as a core operational issue:-
Start by mapping internal supply chain operations Identify where environmental and social responsibility problems or opportunity lie Evaluate alternative ways to make improvements that may require trade-offs between the two types of performance Consider their potential social impact After you choose and implement initiatives, continually measure their performance to ensure that you have achieved the right balance of environmental, social and conventional operational consideration. Thank You