Event & News
Euro 2020 Football Teamwork’s lesson learned for Supply Chain
How many times have you witnessed an overambitious player intend to runs into the goal alone but then kicks the ball out of play? Well, it happens quite often. Teamwork is vital, you should pass the ball to someone who cooperates to help to reach the goal. Similar to the business, the ability to work as a team is a significant skill that successful teams have.
In the supply chain environment, visibility across the supply chain including your partners, suppliers, contract manufacturers, and third or fourth-party providers is crucial. If you know what your supply chain partners are capable of and understand the characteristics of your supply chain ecosystem, you can adapt to the market changes quickly as the collaboration works more efficiently.
Utilizing this visibility requires agility. Being able to identify the disruptive events quickly, and understanding the potential impact in the business enables supply chains to run in an agile and competitive manner. With an agile action and clear visibility, supply chain planners can develop strategies to mitigate the risks before they turn into problems.
Source: https://www.forbes.com/sites/sap/2021/07/12/what-can-soccer-teach-us-about-supply-chain-planning/amp/
Read MoreIn the supply chain environment, visibility across the supply chain including your partners, suppliers, contract manufacturers, and third or fourth-party providers is crucial. If you know what your supply chain partners are capable of and understand the characteristics of your supply chain ecosystem, you can adapt to the market changes quickly as the collaboration works more efficiently.
Utilizing this visibility requires agility. Being able to identify the disruptive events quickly, and understanding the potential impact in the business enables supply chains to run in an agile and competitive manner. With an agile action and clear visibility, supply chain planners can develop strategies to mitigate the risks before they turn into problems.
Source: https://www.forbes.com/sites/sap/2021/07/12/what-can-soccer-teach-us-about-supply-chain-planning/amp/
Shipping & Ports congestion disruption
Sailing schedules cannot be relied upon – as long as ports are congested. But port efficiency cannot really recover as long as vessels “bunch” together, arrive outside the planned terminal windows or divert away from nearby congested ports. Where does this catch-22 leave shippers?
More and more often, it seems, resolving one problem along the container shipping supply chain creates even bigger problems and disruptions elsewhere in the supply chain.
Just recently, operations returned to normal at Yantian International Container Terminal (YICT), after Covid-19 staff restrictions there, but the congestion shifted largely to nearby port of Hong Kong and also affected other ports in Asia, as ships and cargo volumes were diverted. Because ports are already struggling to cope with high volumes, they are vulnerable to sudden, incremental stresses.
It will certainly take an awful length of time before schedules are back to normal and reliable again, because the current model of operations of carriers – sliding schedules, blanking sailings and skipping congested ports in their rotations – is expected to continue.
Particularly for shippers and BCOs, this will mean a long period of extended and less predictable transit times, combined with rollovers, lack of space and empty equipment, and extreme spot freight rates.
Drewry is having many discussions with shippers about alternatives (alternative ports, alternative transport modes, alternatives transloading nodes for a specific shipper) and even about the feasibility of major BCOs chartering containerships, as HomeDepot did recently. The new Chinese carrier CU Line, for example, is considering new investors in its venture. Logistics planners are also rethinking safety margins and increasing inventory at destination.
Source: https://www.hellenicshippingnews.com/maritime-supply-chains-stuck-in-a-catch-22/
Read MoreMore and more often, it seems, resolving one problem along the container shipping supply chain creates even bigger problems and disruptions elsewhere in the supply chain.
Just recently, operations returned to normal at Yantian International Container Terminal (YICT), after Covid-19 staff restrictions there, but the congestion shifted largely to nearby port of Hong Kong and also affected other ports in Asia, as ships and cargo volumes were diverted. Because ports are already struggling to cope with high volumes, they are vulnerable to sudden, incremental stresses.
It will certainly take an awful length of time before schedules are back to normal and reliable again, because the current model of operations of carriers – sliding schedules, blanking sailings and skipping congested ports in their rotations – is expected to continue.
Particularly for shippers and BCOs, this will mean a long period of extended and less predictable transit times, combined with rollovers, lack of space and empty equipment, and extreme spot freight rates.
Drewry is having many discussions with shippers about alternatives (alternative ports, alternative transport modes, alternatives transloading nodes for a specific shipper) and even about the feasibility of major BCOs chartering containerships, as HomeDepot did recently. The new Chinese carrier CU Line, for example, is considering new investors in its venture. Logistics planners are also rethinking safety margins and increasing inventory at destination.
Source: https://www.hellenicshippingnews.com/maritime-supply-chains-stuck-in-a-catch-22/
Procurement as a Service
Procurement as a service is a procurement model which outsources procurement that combines technology, staff, and expertise to handle a portion of the procurement function. Technology helps determine what the organization is spending on and where it's likely to find savings. Service procurement companies are those that deliver people-based services to an organization. A procurement service provider can provide a rapid analysis of an organization’s spend and implement changes, negotiate with suppliers, and use proven industry best practices.
Growing Demand of Procurement as a Service to Improve Spending Coverage and Reduce Cost for Goods and Services. It also need for minimized Risk and Assets Required in Procurement Process.
Source: https://manometcurrent.com/procurement-as-a-services-market-is-booming-worldwide-accenture-capgemini-genpact-corbus-infosys/
Read MoreGrowing Demand of Procurement as a Service to Improve Spending Coverage and Reduce Cost for Goods and Services. It also need for minimized Risk and Assets Required in Procurement Process.
Source: https://manometcurrent.com/procurement-as-a-services-market-is-booming-worldwide-accenture-capgemini-genpact-corbus-infosys/
Human-centric Supply Chain Transformation
While it’s clear that the pandemic has accelerated digital transformation, putting humans at the center of these efforts is key to long-term success. But what exactly does a “human-centric” approach mean? To find out, companies must be prepared to “get a little dirty” by sorting through all of their messy data, and account for the human interactions that allow them to better understand policies and processes within operations. These include e-mails, phone calls, spreadsheets, and manual processes that move cargo around the planet.
There are good reasons for companies to have enterprise resource planning (ERP), but it’s expensive, time-consuming and difficult to change. Transportation and warehouse-management are just as well-entrenched, so achieving real change that adds value can be a challenge. All the more reason to stay focused on a human-centric approach to transformation. That will help ensure that you choose the right technologies to aid in your organization’s business goals, which in the end are what drive return on investment.
Because of the severity and urgency of the challenges that businesses and consumers have faced over the past 18 months, the supply chain is now considered an essential function and a strategic investment. A partner mentality will go a long way toward achieving the kind of transformation that ensures doing right by your customers, and their customers as well. The multi-party supply chain revolves around humans; so should its solutions and operations. No matter how advanced technology becomes, a human touch will always be needed to get the most out of any investment for maximum ROI.
Source: https://www.supplychainbrain.com/blogs/1-think-tank/post/33315-supply-chain-transformation-with-a-human-touch
Read MoreThere are good reasons for companies to have enterprise resource planning (ERP), but it’s expensive, time-consuming and difficult to change. Transportation and warehouse-management are just as well-entrenched, so achieving real change that adds value can be a challenge. All the more reason to stay focused on a human-centric approach to transformation. That will help ensure that you choose the right technologies to aid in your organization’s business goals, which in the end are what drive return on investment.
Because of the severity and urgency of the challenges that businesses and consumers have faced over the past 18 months, the supply chain is now considered an essential function and a strategic investment. A partner mentality will go a long way toward achieving the kind of transformation that ensures doing right by your customers, and their customers as well. The multi-party supply chain revolves around humans; so should its solutions and operations. No matter how advanced technology becomes, a human touch will always be needed to get the most out of any investment for maximum ROI.
Source: https://www.supplychainbrain.com/blogs/1-think-tank/post/33315-supply-chain-transformation-with-a-human-touch
New supplier end-to-end traceability
In manufacturing, spikes in demand can often lead to material shortages. While manufacturers typically buy materials from established suppliers, they’ll sometimes purchase from other sources when specific parts aren’t available. Working with brokers to buy from less-established sources is not uncommon and often the only way a manufacturer can keep production lines going. But this method can open manufacturers to risk if they happen to get substandard parts.
Introducing a part from a new supplier into its ecosystem posed enormous risk to the company, customers and its affiliated supplier network. Responding immediately was important to understand the potential issue, contain the affected product and minimize impact to their customer base. Without good information and traceability, the company could have faced a broad-sweeping product recall and significant time, effort and cost to contain the issue.
The goal is to set up complete, end-to-end traceability from raw material suppliers to component suppliers, to manufacturing operations, distribution centers and the end customer. This operational intelligence creates a competitive edge, through the value of the supply chain and the traceability that ensures quality remains intact every step of the way.
Source: https://www.supplychaindive.com/news/new-supplier-risk-traceability-can-help-manufacturing/602984/
Read MoreIntroducing a part from a new supplier into its ecosystem posed enormous risk to the company, customers and its affiliated supplier network. Responding immediately was important to understand the potential issue, contain the affected product and minimize impact to their customer base. Without good information and traceability, the company could have faced a broad-sweeping product recall and significant time, effort and cost to contain the issue.
The goal is to set up complete, end-to-end traceability from raw material suppliers to component suppliers, to manufacturing operations, distribution centers and the end customer. This operational intelligence creates a competitive edge, through the value of the supply chain and the traceability that ensures quality remains intact every step of the way.
Source: https://www.supplychaindive.com/news/new-supplier-risk-traceability-can-help-manufacturing/602984/
Supply Chain's Digital Transformation
The most successful digital transformations focus on delivering value aligned to well-defined business objectives. These objectives are evolving away from traditional drivers, such as working capital reduction, and into satisfying changing customer demands consistently and reliably delivering on customer promises even as supply availability changes. These shifts represent ties to larger business objectives, such as building a more resilient supply chain that can better respond to unexpected changes.
As with training for an endurance race, having a plan and following it to get the challenging work done in a digital transformation is critical. Be realistic about what you can accomplish as an organization within defined time periods. Successful organizations clearly define a time-boxed roadmap for their digital transformations and thoughtfully execute against it. Another customer wanted to satisfy demand while balancing inventory utilization and operational efficiency.
Supply chain leaders often mention that their people are focused on manual, low-value tasks to clean and manipulate data, and by the time results are published for decision making, they are already outdated. Instead there is desire to refocus their managers and planners on high-value, data-enabled decisions to solve the most salient of challenges in their supply chains. Recent disruptions from storms destroying oil rigs in the gulf, shipping delays due to COVID-19 and the ever-rising power of the consumer further heighten the importance of transforming your people into a digital workforce.
Source: https://www.kinaxis.com/en/blog/stay-pace-success-supply-chain-transformation-plan
Read MoreAs with training for an endurance race, having a plan and following it to get the challenging work done in a digital transformation is critical. Be realistic about what you can accomplish as an organization within defined time periods. Successful organizations clearly define a time-boxed roadmap for their digital transformations and thoughtfully execute against it. Another customer wanted to satisfy demand while balancing inventory utilization and operational efficiency.
Supply chain leaders often mention that their people are focused on manual, low-value tasks to clean and manipulate data, and by the time results are published for decision making, they are already outdated. Instead there is desire to refocus their managers and planners on high-value, data-enabled decisions to solve the most salient of challenges in their supply chains. Recent disruptions from storms destroying oil rigs in the gulf, shipping delays due to COVID-19 and the ever-rising power of the consumer further heighten the importance of transforming your people into a digital workforce.
Source: https://www.kinaxis.com/en/blog/stay-pace-success-supply-chain-transformation-plan
Pocurement and supply profession credibility
“The procurement and supply profession has gained even more credibility and respect as the world wakes up to how essential resilient supply chains are,” Malcolm Harrison, CEO Of CIP, said in a statement.
The report suggests that purchasing and supply-chain management will remain in the spotlight this year. The survey found that 45% of procurement specialists believe their top challenge this year will be working through the supply-chain problems that were created by the COVID-19 pandemic.
Those challenges have been pronounced for the restaurant industry. Operators and distributors say the business still faces extreme shortages of such supplies as chicken wings, other proteins and cooking oils. They note that many food processors have still not resumed their pre-pandemic output of ingredients and supplies for the foodservice industry.
Source: https://restaurantbusinessonline.com/amp/leadership/supply-chain-execs-get-more-respect-pay-study-finds
Read MoreThe report suggests that purchasing and supply-chain management will remain in the spotlight this year. The survey found that 45% of procurement specialists believe their top challenge this year will be working through the supply-chain problems that were created by the COVID-19 pandemic.
Those challenges have been pronounced for the restaurant industry. Operators and distributors say the business still faces extreme shortages of such supplies as chicken wings, other proteins and cooking oils. They note that many food processors have still not resumed their pre-pandemic output of ingredients and supplies for the foodservice industry.
Source: https://restaurantbusinessonline.com/amp/leadership/supply-chain-execs-get-more-respect-pay-study-finds
Supplier Relationship Management
How does procurement evolve its value beyond cost savings? To make that evolution you have to be better at engaging with suppliers – it’s that simple!
Procurement must show it is in control of supply assurance, or keeping the goods moving. That’s not an easy ask right now. The congestion at ports, lack of container shipping, pent-up demand, parts shortages and so on — all these things are making it difficult for procurement to deliver. (The latest ISM report details that.)
And the supplier has to prioritise its customers just as much as procurement has to prioritise its suppliers — they have allocation rules too. It’s simply foundational thinking: you need good relationships with suppliers to get those preferential allocations when you need them.
But you need more than that — you need visibility from your supplier, you need alerts on lateness, financial early warnings, status of critical components (like semiconductors of late). You simply will not know when your supplies will be available if you don’t have good Supplier Relationship Management in place.
Source: https://spendmatters.com/2021/07/06/unconventional-wisdom-srm-does-it-really-matter-as-much-to-the-supply-chain-as-it-does-to-procurement
Read MoreProcurement must show it is in control of supply assurance, or keeping the goods moving. That’s not an easy ask right now. The congestion at ports, lack of container shipping, pent-up demand, parts shortages and so on — all these things are making it difficult for procurement to deliver. (The latest ISM report details that.)
And the supplier has to prioritise its customers just as much as procurement has to prioritise its suppliers — they have allocation rules too. It’s simply foundational thinking: you need good relationships with suppliers to get those preferential allocations when you need them.
But you need more than that — you need visibility from your supplier, you need alerts on lateness, financial early warnings, status of critical components (like semiconductors of late). You simply will not know when your supplies will be available if you don’t have good Supplier Relationship Management in place.
Source: https://spendmatters.com/2021/07/06/unconventional-wisdom-srm-does-it-really-matter-as-much-to-the-supply-chain-as-it-does-to-procurement
Supply chain design solutions: Learning from the Covid-19 realities
Learning from the Covid-19 realities, government and industry can re-assess their supply chain risks and determine supply chain design solutions that will deliver the most resiliency in the event of another large-scale disruption. Through Covid-19 there was more focus on possible adoption of digital approaches and introduction of a new system to electronically process information.
Another industry practitioner emphasised the importance of these tools in sustainable procurement,“It’s also about value creation. It’s about driving better outcomes whole of life outcomes, reducing operational costs, providing value for money, making sure that we’re prepared for things like shocks and stresses”.
Key levers including developing reliable, transparent, and local supply chains, leveraging innovative tools and digital engineering approaches, creating a coalition between government and industry, integrating Modern Slavery Act and procurement guidelines, and assessing risks at multiple-levels emerged through the focus group discussions.
Source: https://thefifthestate.com.au/business/investment-deals/sustainable-procurement-what-we-learned-from-covid-19/
Read MoreAnother industry practitioner emphasised the importance of these tools in sustainable procurement,“It’s also about value creation. It’s about driving better outcomes whole of life outcomes, reducing operational costs, providing value for money, making sure that we’re prepared for things like shocks and stresses”.
Key levers including developing reliable, transparent, and local supply chains, leveraging innovative tools and digital engineering approaches, creating a coalition between government and industry, integrating Modern Slavery Act and procurement guidelines, and assessing risks at multiple-levels emerged through the focus group discussions.
Source: https://thefifthestate.com.au/business/investment-deals/sustainable-procurement-what-we-learned-from-covid-19/