The Temple of Supply Chain Resilience
Building a resilient supply chain is increasingly important for all organizations. It is however something that cannot be done overnight. It involves all areas of the business and requires an effective strategy and will impact on everything from product and service design to the cultures required within the business. If you are concerned about risk & vulnerabilities in your supply chain build the “Temple of Supply chain resilience”, this blog (and video) briefly outlines the how to build this temple.
Classification of the Sources of Supply Chain Risk and Vulnerability
Our research at the Cranfield School of Management, sponsored by the UK Department for Transport, into the origins of supply chain risk and vulnerability identified the following dimensions of risk in the supply chain – these can be divided into external and internal ‘drivers’. The external drivers are demand side, environmental and supply side risks. The internal drivers are process, control and mitigation/contingency. This post will discuss these in more detail.........
The future of home delivery
Over the past few weeks I have had the opportunity to advise the BBC on a feature that went out on Radio 4’s PM show (5.50pm 05/07/2012) and was then published in more depth on the BBC website as the “Parcel Conundrum” under the magazine section.
I heard from the BBC producer and reporter Andrew Bomford over the weekend. The web page was the 2nd most read on Friday (06/07/2012) and received 682,000 views in one day! The BBC have also been inundated with emails in response. I have also been inundated with emails and ideas on how the issues can be dealt with.
In addition to the content produced by Andrew and the team at the BBC I feel it may be useful to outline some of the technologies and options that may drive future trends in home delivery. Feel free to comment or add further useful links to organisations and sites relevant to this debate.
Understanding Supply Chain cost drivers.
Understanding the cost drivers in the supply chain has always been a major issue for organisations. It is critical to gain transparency of costs in the supply chain but for many organisations this proves difficult and elusive. In order to manage effectively, the relationship between service and cost needs to be clearly understood to enable profitability of all the elements in the supply chain. In this blog I thought it worth revisiting the fundamentals of “Cost to serve” and “Supply Chain Finance”.
The Olympic games is Britain’s largest peacetime logistical exercise, it is equivalent to running 26 simultaneous sporting world championships at the same time. It is anticipated that 9 million spectators will be attending the main games and 2 million spectators attending the Paralympic games. In total over 300,000 athletes, officials, media, games “family members” and workforce will also be in attendance. London tourism chiefs are anticipating 500,000 people will be looking to stay overnight in London during the games. The games are taking place in the heart of London during the summer which is always the busiest time. In June “soft openings” occur of venues and the Olympic village with the official opening of the Olympic village on the 13th July and its closure on the 14th September so for a period of 3 months the Olympic party will consume the city.
However the implications of this event on the way logistics & supply chains operate is significant.
Professor Richard Wilding is interviewed and quoted by "Procurement Leaders Magazine" on "After the flood - lessons from Thailand". How good is your supply chain risk management?
Time is Money in the supply chain!
We all know the saying “Time is Money” but how often when involved in making procurement supply chain decisions is time taken into account? Henry Ford proposed in 1926 that “Time waste is more important than material waste in that there can be no salvage”. In other words if reading this is a complete waste of time to you your time will never be reimbursed! On the other hand, if you were to print this out, you may be able to recycle the paper and salvage some material!
But when we come to supply chain, logistics, procurement and sourcing how much are we willing to pay for time? Is time factored into the price we pay, is it considered as part of the decision? Do you understand the true costs of time when you procure or make another supply chain management or logistics decision?
For example, it is not uncommon for a low cost global sourcing decision to extend the cash to cash cycle from 8 weeks (if locally sourced) to 19 weeks when sourced globally. What is the cost of this to the business in terms of increased risk, the cost of funding additional inventory and the cost of reduced responsiveness? What is the cost of having to manage highly variable ocean transit times which means your items may arrive plus or minus 10 days from the due date originally promised? What is the cost of the increased safety stock you carry to cover this increased time and time variance? Can your “Just in Time” systems cope with this?
As a procurement or supply chain leader the true cost of time needs to be understood and disseminated to your team. Without considering the “T” word, TIME, the “P” word, PROFITS, will be destroyed even if you did reduce the “piece” price significantly.
_ Managing the blood supply chain.
Today (28th December 2011) the BBC has run an article titled “Blood Bank “Perfect Storm” Threat for 2012". It argues that blood stocks in the UK may be hit by the Olympics, Queens Diamond Jubilee and other events this year. This is due to a potential drop in donations. For many years I have had the privilege of working on the blood supply chain supporting NHS Blood Stocks Management Scheme, so it seems appropriate to look at the blood supply chain and understand this threat and what we can do to avoid it.
Prof Richard Wilding comments published in “Procurement Leaders” on moving back from Global to Local sourcing http://bit.ly/rv3Oss
www.richardwilding.info website has been launched. As part of the process the freely available Google Analytics has been used to monitor the site. Information including the number of hits, detailed demographics including the town, country, type of computer, make of mobile telephone, time spent viewing pages, entry and exit pages are monitored and analysed automatically as part of the free google analytics package.It is now just under 2 weeks since the new
Google analytics also tracks the “journey” or flow a user takes on the website. It sees the country and town the “surfer” originates from it then monitors each page viewed so a surfer may originate in Seatle, USA, access the home page for 30 seconds, then spend 2 minutes on the “About” page, 45 seconds reading this “blog”, then access the “downloads” and down load a file, then visit the “podcast page” for a further 92 seconds and then exits.
But what is the point of this abundance of this anonymous information and how can companies use it?
Innovating the Global Supply Chain