Archive for May, 2009
S&OP is Not a Supply Chain Process!
· CommentsSo says Peter Skurla, the man credited with coining the phrase “Sales & Operations Planning” and a principal at Oliver Wight, the consulting organization most strongly associated with expertise in S&OP. Over my years of covering supply chain management, several companies have told me how helpful “Ollie Wight” has been in helping them get to a better S&OP process.
In a conversation with Peter, he made the point… Continue reading
‘A TMS is Too Expensive’ and Other Excuses
· CommentsBased on our research and experience, many companies are not using a transportation management system (TMS) for one or more of the following reasons:
- “We don’t need a TMS, our current process works just fine.” This may be true at companies with very low shipping volumes and simple transportation networks, e.g., a few truckloads per week going to a handful of locations. But in most cases, “we
I generally leave the discussion of political issues that affect logistics to my colleague Adrian Gonzalez. But one issue that I have been tracking is the “reset economy,” the idea that once we emerge from this recession, certain industries may not bounce all the way back. In other words, they may not have the same growth and profitability they had before the recession. One scenario that could negatively affect… Continue reading
In last Thursday’s piece, I proclaimed that transportation procurement is ‘hot’ right now. It’s been the most read posting over the past few days, and it prompted the following great viewpoint from Logisticsexpert, a logistics executive like many of you:
“I have debated this topic with many providers over the last year. My question comes down to this: What evidence do I have that no matter what I… Continue reading
Companies that outsource manufacturing, logistics, call centers, IT support, and various back office functions can be better equipped to ride out a recession, particularly if the payments are transaction based. Less demand means fewer transaction fees associated with supply chain services. These companies have minimized their fixed overhead costs, and their warehousing, transportation, and manufacturing costs become variable costs that are strongly correlated to new orders. This becomes even truer… Continue reading
I am short on time this morning, so I’ll just get right to the point: transportation procurement is hot right now. In every conference that I’ve attended so far this year, I’ve spoken to many shippers who have put their freight out to bid over the past 6-9 months. And this trend is confirmed by TMS vendors, consultants, and logistics service providers.
Yesterday, at the Manhattan Associates’ Momentum 2009… Continue reading
Lessons from Classic Supply Chain Articles
· CommentsAnother week, another supply chain conference. This time I’m on my way to Las Vegas to speak at Manhattan Associates’ Momentum 2009 conference. My talk is on “The Hidden Value of Software-as-a-Service,” a topic that never seems to get old. I’ll have more to say about the conference tomorrow.
On the plane ride over, I re-read a couple of classic supply chain articles, including Hau Lee’s “The
Lasik for Supply Chain
· CommentsIn his keynote address at last week’s SAPPHIRE 2009 conference, SAP’s Co-CEO Léo Apotheker talked about how the best-run companies will “see clearly, think clearly, and act clearly”-what SAP is calling “The Clear Enterprise.” He went on to say, “What we are seeing is a growing and lasting need for clarity and insight. Doing business within global networks has brought greater complexity and risk into the game…Executives must have… Continue reading
