Archive for ARC Advisory Group

DC Managers: Use the Right Kind of Metrics to Protect Your Job

ARC Advisory Group surveyed 52 logistics executives and asked them if their companies were using any sort of warehousing costs per unit measurement, defined as “total warehousing costs/total units shipped.” Thirty-seven percent of the respondents were not using this this metric type, which is far too low. Ideally, if a company is doing pallet shipments, it would measure “cost per pallets shipped” to evaluate that zone of the warehouse; if it is building mixed-case pallets, […]

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A Revolution is Coming to the Spare Parts Warehouse

Inventory management is very difficult in a spare parts warehouse. For example, if you are a car or truck manufacturer, your warehouse network needs to carry spare parts for a vehicle you might have stopped making decades ago. Further, your network of dealers and repair shops don’t want to wait for spare parts; industry standard is to provide them with next day delivery of requested parts. What this means is that a spare parts warehouse […]

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Highway Bill Needs to Include Funds for Smart Transportation

US logistics professionals are tracking the status of the Highway Bill — formally known as the Safe, Accountable, Flexible, Efficient Transportation Equity Act — and they are concerned about longer and less predictable lead times if our highways don’t get the necessary funding. But after reading a recent ARC Advisory Group strategy report titled “Smart Cities: A Global Imperative (available to ARC clients only), I realized that we also need more funding for intelligent transportation […]

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Missed Alarms: What Can Hospitals Learn from SCM Best Practices?

At the end of December, the Boston Globe published an article titled, “Wide heart monitor use tied to missed alarms.” I had a strong feeling I had read that article before, and then I realized I was having a déjà vu moment — ARC had published a strategy report in 2004 focused on alarm management strategies for manufacturing plants. Here are the opening paragraphs from the Boston Globe article: It used to be that only […]

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Supply Chain and Logistics Conferences to Attend in 2012

I hope you took my advice from last August and you included funds for leadership development and education in your 2012 budget, which should include attending industry conferences and seminars. But with so many events going on throughout the year, how do you choose which ones to attend? Here are three questions to ask as you evaluate the options: 1. Does the agenda align with the key initiatives I’m working on? Simply put, give priority […]

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Smart Products Require a Sophisticated Supply Chain

The first paragraph of my colleague Dick Slansky’s recent Strategic Report on Smart Products’ Supply Chain Challenges (available to ARC clients only) caught my attention. Increasingly, today’s consumers are being exposed to an environment of intelligent products –from toasters to automobiles. The level of intelligence embedded in everything from our cars, to our homes, communication devices, consumer electronics, and even mundane items as our toasters and toothbrushes, increases every day. In the very near future, […]

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Thoughts on Food Safety and Supply Chain Management

According to a recent ARC report, “Food Safety: Are We Getting Better or Worse?” (available to ARC clients only), statistics show that the number of food-borne illnesses and their severity have remained relatively constant over the years. “In the US, this translates into 76 million gastrointestinal illnesses, 325,000 hospitalizations, 5,000 deaths, and billions of dollars in costs.” Despite scientific and technological advancements in so many areas, we’re really not improving the safety of our food […]

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Protecting Your Supply Chain from Counterfeit Products

Counterfeiting is a growing and pervasive problem across all industries. However, in the electronics, consumer products, food, pharmaceutical, medical devices, aerospace, defense, and automotive industries it is particularly frightening because it threatens consumer health and safety, as well as corporate profits and brand equity. Counterfeiting is increasing worldwide, with counterfeiters using increasingly more sophisticated techniques and consumers purchasing more goods online. The value of counterfeit products was expected to reach $1 trillion globally in 2010, […]

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The First Moment of Truth is Going Mobile

My colleague Steve Banker wrote a posting last week (“What Affects Point of Purchase, Affects the Supply Chain”) that made me realize something. Steve wrote that the recession is shifting the “first moment of truth”—i.e., the first chance a retailer or consumer goods company has to please a customer, which A.G. Lafley (P&G’s former CEO) originally defined as the moment a consumer walks up to a store shelf and finds the product they want in stock. […]

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Supply Chain’s Role in Brand Protection

My colleague Janice Abel recently wrote an ARC Strategic Report called “Best Practices for Anti-Counterfeiting and Brand Protection” (available to ARC clients only).  Achieving excellence in anti-counterfeiting and brand protection (ABP) is a multipronged, cross functional effort that requires the use of various technologies. But Janice makes the case that the supply chain organization has a role to play in these efforts.  First of all, counterfeiting is a significant problem. The US Department of Commerce […]

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