CIT WORLD 8 TEMPLATE - The Chartered Institute of Logistics and ...
CIT WORLD 8 TEMPLATE - The Chartered Institute of Logistics and ...
CIT WORLD 8 TEMPLATE - The Chartered Institute of Logistics and ...
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egional configuration <strong>of</strong> your distribution<br />
centres. This enables you to better ensure that<br />
you have the right products positioned at the<br />
right warehouses to meet their local dem<strong>and</strong>s.<br />
This is important for being able to deliver full,<br />
complete orders on time.<br />
• Reduce your internal total logistics cycle time,<br />
with purchasing, manufacturing, customer<br />
order <strong>and</strong> shipping, to have product ready <strong>and</strong><br />
available for delivery to the customer. Seek<br />
improvements to reduce the cycle time <strong>and</strong><br />
improve agility. Communicate the logistics<br />
process within the company, both in general<br />
<strong>and</strong> for specific, key customers, so everyone<br />
internally knows what will be done, why <strong>and</strong><br />
how. Analyse your distribution network. Are<br />
your warehouses in the correct locations for<br />
maximum supply chain effectiveness? Each <strong>of</strong><br />
your customers expects his orders to be<br />
delivered complete, accurate <strong>and</strong> on time.<br />
Become a ‘valued supplier’<br />
Make sure you are capable <strong>of</strong> doing that<br />
consistently so that you are a valued supplier. Do<br />
not fixate on lesser points, such as your LTL<br />
program. Instead focus on how that <strong>and</strong> other<br />
points come together as a cohesive effort.<br />
• Develop <strong>and</strong> communicate to your suppliers<br />
what you are doing, why you are doing it <strong>and</strong><br />
what you expect <strong>of</strong> them. Learn their processes<br />
to help you design the best one. Collaborate<br />
with them to improve their processes. Have<br />
them develop <strong>and</strong> communicate to their<br />
suppliers. Optimising your own needs without<br />
regard to your suppliers’ can really suboptimise<br />
your logistics programme.<br />
• Learn your international suppliers’ operations<br />
<strong>and</strong> logistics cycle time. <strong>The</strong> lead-time with<br />
international sourcing <strong>and</strong> its impact in<br />
inventory <strong>and</strong> on operations makes this very<br />
important. Always having inventory in transit,<br />
in the pipeline, smooths some <strong>of</strong> the peaks<br />
<strong>and</strong> valleys in inventory replenishment <strong>and</strong><br />
availability, given the distance <strong>and</strong> lead times.<br />
Learning when ocean carriers ship from the<br />
overseas port <strong>and</strong> arrive at your port <strong>of</strong> entry is<br />
a step to reducing bunching <strong>of</strong> incoming<br />
containers <strong>and</strong> product. Depending upon<br />
your distribution or plant locations, analyse<br />
using both ‘mini-l<strong>and</strong>bridge’ <strong>and</strong> all-water<br />
options. Look at using more than one carrier<br />
to h<strong>and</strong>le your shipments. Different sailing<br />
dates <strong>and</strong> arrival dates gives you alternate<br />
movements <strong>of</strong> inventory. Look at having a<br />
multi-modal approach. Depending upon your<br />
products <strong>and</strong> their characteristics, consider<br />
flying some product to also keep inventory<br />
flowing to reduce gaps <strong>and</strong> bunching. Do not<br />
fixate on such things as ‘premium freight’<br />
with regard to airfreight. That is an antiquated<br />
definition <strong>and</strong> ignores the cycle time,<br />
customer service <strong>and</strong> inventory issues <strong>of</strong><br />
supply chain management.<br />
• Reduce the number <strong>of</strong> suppliers <strong>and</strong> service<br />
providers you work with. Besides the benefits <strong>of</strong><br />
consolidated volume <strong>and</strong> leveraging, using<br />
fewer firms limits, if not reduces, the complexity<br />
<strong>of</strong> your supply chain. Unnecessary, extra players<br />
can run counter to improving the process with<br />
collaboration.<br />
And, when you think you have it all worked out,<br />
take a deep breath, smile, <strong>and</strong> get ready to make<br />
changes. Your customers’ expectations <strong>and</strong> needs<br />
are dynamic. Your logistics process must be agile<br />
to meet the new dem<strong>and</strong>s.<br />
If you excel at your supply chain, your company<br />
will have a competitive advantage.<br />
This article is based on an item that appeared on<br />
the website <strong>of</strong> www.eyefortransport.com – a free<br />
information portal for the freight transportation<br />
industry, updated daily.<br />
CILTWorld issue 9 11<br />
LOGISTICS<br />
RESEARCH SHOWS<br />
HOW I.T. DRIVES LATEST<br />
SUPPLY-CHAIN TRENDS<br />
THE INSTITUTE <strong>of</strong> <strong>Logistics</strong> <strong>and</strong> Transport (ILT)<br />
– the UK arm <strong>of</strong> the CILT – together with DCE<br />
Consultants launched the ‘Supply-Chain<br />
Package Solutions H<strong>and</strong>book’ at ILT2003, the<br />
ILT’s annual logistics convention.<br />
<strong>The</strong> H<strong>and</strong>book is a comprehensive guide for<br />
Supply-Chain, Operations or Information<br />
Technology (IT) Directors in any industry, who<br />
want to implement highly competitive<br />
supply-chains that make the best use <strong>of</strong> IT<br />
<strong>and</strong> package s<strong>of</strong>tware.<br />
<strong>The</strong> H<strong>and</strong>book is the result <strong>of</strong> extensive<br />
research into the latest supply-chain trends<br />
<strong>and</strong> it shows how IT is:<br />
• Facilitating collaboration in the extended<br />
supply-chain<br />
• Enhancing supply-chain visibility through<br />
effective event management<br />
• Establishing dynamic supplier relationship<br />
management<br />
• Using real time customer data to improve<br />
dem<strong>and</strong> planning<br />
IT performs a critically important role in all<br />
supply-chain execution, management <strong>and</strong><br />
support activities. One <strong>of</strong> the key drivers for<br />
major change in the supply-chain has been<br />
the emergence <strong>of</strong> technologies enabling<br />
integration <strong>and</strong> real time information sharing<br />
across an extended supply-chain, providing<br />
the visibility that is now being dem<strong>and</strong>ed by<br />
customers <strong>and</strong> suppliers.<br />
Companies today are thus competing<br />
through the effectiveness <strong>of</strong> their supplychains<br />
but the diversity in today’s supplychain<br />
s<strong>of</strong>tware market creates complexity<br />
<strong>and</strong> confusion for a potential purchaser.<br />
<strong>The</strong> H<strong>and</strong>book guides readers through the<br />
latest advances in technology that are<br />
supporting <strong>and</strong>, increasingly, driving new,<br />
more sophisticated, collaborative <strong>and</strong><br />
dem<strong>and</strong> driven supply-chain models. It<br />
discusses how companies are moving<br />
towards these advanced supply-chain models<br />
<strong>and</strong> how long-term sustainable change,<br />
operational benefits <strong>and</strong> return on<br />
investment (ROI) can be achieved through<br />
Operational Excellence.<br />
Copies <strong>of</strong> this extensive report can be<br />
purchased from the ILT’s Bookshop:<br />
ILT Members: £150 +p&p<br />
Non ILT members: £200 +p&p<br />
Contact: ILT Bookshop.<br />
Tel: +44 (0) 1536 740104.<br />
Email: bookshop@iolt.org.uk