One of the most common issues supply chain managers face is known as the bullwhip effect in which small fluctuations in demand at the downstream end of the supply chain may cause out sized variations at upstream suppliers. The effect is a bloated and ineffective supply chain with too much inventory. An effective supply chain manager will want to use strategies to reduce the bullwhip effect to improve the overall efficiency of the supply chain. Some methods to overcome the
Forecasting is an imperfect science, but it is also a necessity for most businesses. That’s particularly true when it comes to supply chain management. Proper forecasting helps ensure you have enough supply on hand to satisfy demand. Business analysts use supply chain management systems and other tools to forecast demand weeks and months in advance. Forecasting demand, and coordinating activities to meet demand, are full-time jobs. Companies with global operations use sophisticated software and systems to forecast demand, but your small
A collaboration tool helps people to collaborate. The purpose of a collaboration tool is to support a group of two or more individuals to accomplish a common goal or objective. Collaboration tools can be either of a non-technological nature such as paper, flipcharts, post-it notes or whiteboards. They can also include software tools and applications such as collaborative software.Collaboration tools are broadly classified into three types – communication, coordination and cooperation. How does ERP workflow help in the supply chain management? ERP
How much do we know about sustainable supply chain? Let’s have a look on how supply chain lifecycle could be incomplete without any integration of environmentally and financially viable practices. If the selection/agricultural production of raw material to manufacturing, packaging, distribution, final consumption of a product is done in an environmentally sustainable manner, it can help the organization to not only reduce the carbon footprint as a whole but also helps in reducing operation costs thereby increasing profitability. With increasing demand
5 of the most important lean tools used in industry are Kaizen, Kanban, 5S, Value stream mapping, Foucs PDCA. With COVID-19 affecting most of the industries, it is estimated that certain sectors like pharmaceuticals and semi-conductor sectors will have have an inventory which lasts from 150-300 days . Utilizing the lean methodology and the concept of lean production has become by far one of the most popular methodologies among production facilities. The idea behind lean manufacturing includes creating what is needed
COVID-19 has been called “The Great Pause,” a time for reflection and introspection. While the pandemic continues to turn the world upside down, new realisations are beginning to dawn on us. The COVID-19 pandemic has brought massive changes to our lives and ways of thinking. People’s movement has been severely restricted and many sectors of our economies have been shut down. Whereas immediate environmental impacts of the pandemic are evident in a drop in carbon emissions and decreased air pollution, it
ABC has helped many companies identify important cost and profit enhancement opportunities through reprising of unprofitable customer relationships, process improvements on the shop floor, lower-cost product designs, and rationalized product variety. It is difficult to imply activity based costing on large-scale industries. However, its potential on a larger scale represents a huge opportunity for companies. Fortunately, simplification is now possible through an approach that we call time-driven ABC In the revised approach, managers directly estimate the resource demands imposed by each
How would companies adapt to changing customer preferences especially after COVID-19? After all, customers form the base for any organization and serving them right is every company’s core mission. The world is already moving towards digital transformation and artificial intelligence particularly in the field of Supply Chain. This is where the concept of Predictive Analytics comes into picture. In an industry where time and resources can make or break a company’s bottom line, predictive analytics is no longer an additional feature, but
Ministry of Home affair on friday increased the current lockdown period till May 17 , for the second time in a row due to the coronavirus pandemic. The government has classified the country in three different zones: Red, Orange and Green, with the Red zone has been classified as hostspot of the current pandemic. Ban on air, rail, metro, and inter state movements by road will be continued till the lockdown goes on. Industrial zones have been permitted activities in the manufacturing
What does it take to be a master in supply chain management? Well, it is not an easy task but is definitely a very important one to take the business to higher levels and get efficient results. The margin of error with the supply chain management is drastically thinning as a consequence of Covid-19. You would probably not get one way of understanding & dealing with the tangled chains but yes, a few approaches can make the way a lot
