supply chain policy

10 Things You Should Consider Before Writing any Supply Chain Policy

In most of the business it is often the same people, who are doing the same job. When purchasing materials, the same routines are used on each occasion, even if each and every one of these purchases may be unique, so why we need supply chain policy or procedure ? Similarly, the steps of booking materials in warehouse is same regardless of supplier and part number in most scenarios. Such repeated set of activities is called a process. A more formal definition is presented by Professor Bo Bergman1 : “a process is a network of activities that are repeated in […]

Procurement Book

The Top 7 Must Read Procurement Book for Supply Chain Professionals

Previously I have written blogs about Best Supply Chain Books and Best Logistics Management Books. Both blogs has done well and received lot of appreciation and feedback from Supply Chain community. Some of you have asked which procurement book is best available. Before I start, is procurement purchasing? Or, is Purchasing procurement??? That is the question! Well, in a broad sense, the answer is yes to both but there is a difference – a big difference….. Often used interchangeably with purchasing, procurement is an umbrella term for ‘a sequence of steps involved in the acquiring (procuring) of a product with […]

Supply Chain Coach

5 Reasons Why You Should Engage with Supply Chain Coach

At early stages of my career and even now I have tried to utilized every opportunity I have to interact with senior managers, learn from their experiences. And get hands-on support from them where possible and use them as my supply chain coach. No matter whether your supply chain career is at beginners level, a career change, executive, operational or senior management, you are the owner of your career’s future and ultimately responsible for its direction and success. So what defines a career coaching…. “Advice and counsel from a more senior leaders, who are willing to share their insightful sharing […]

supplier development activities

20 Well Researched & Proven Supplier Development Activities You can Apply

The subject of supplier development activities, practices, and success factors is researched in 36 out of the 81 articles I have researched. Therefore this makes it the most frequently discussed subject in the topic of supplier development. Various types of supplier development activities and resources exist and are mentioned by many researchers, some of which require an intensive. This list of supplier development activities is classified as Direct (D) or Indirect (I) activities, their definitions are discussed in this blog. During my research only one article, by Krause and Scannel (2002), compare the supplier development activities between product and service […]

ABC inventory analysis

Quickest Way to Perform ABC Inventory Analysis- Based on Value, Volume & Frequency of Sales

In supply chain most of us has been performing ABC inventory analysis for many years and in many different ways. This method has served us well and gives us several advantages. However, most supply chain analyst perform ABC analysis on value as you can see in this Wikipedia article and YouTube video. Over the years I have developed an algorithm to perform ABC inventory analysis which is based on Value (£ or $ ), Volume (Qty/Units) and Frequency (number of lines) of sales. I have performed this analysis in many different business and plants I’ve worked with and it has given […]

JIT Supply Chain

11 Supplier Selection Factors to Establish JIT Supply Chain

In a JIT supply chain, reliable suppliers will reduce supply uncertainty and make the supply chain more effective, therefore supplier selection is crucial. However, Purchasing in JIT environment is different and therefore it requires a slightly different mindset for selecting suppliers who can survive in JIT Supply Chain long term. Researchers1 suggested that the selection and evaluation of supplier’s ability to delivery in JIT Supply Chain should be based upon the following factors: JIT Supply Chain- Quantitative & Qualitative Supplier Selection Factors 1.      Delivery of a Quality Product 2.     Delivery On-Time. 3.     Frequent Deliveries. […]

Supplier Quality

Brief Guide to Supplier Quality & Supplier Development

Why Focus of  Supplier Quality & Supplier Development? Supplier Quality is responsible to track and improve our approved suppliers’ performance in terms of number of complaints, caused line stop/ escapes, DPPM (Defect parts per million). We value our suppliers and in the meantime challenge them to take responsibility and ownership in our effort to continuously improve our services and product quality. Each business level should define its weakest supplier pool (Focus 5) where shared efforts with impacted suppliers must be carried out in order to gain acceptable quality level as defined in your company Quality Objectives. The reason of the […]

6 STEPS TO INTENSIFY BUYER SUPPLIER RELATIONSHIP

In the supply chain literature as well as in business environments Supplier Relationship Management and Buyer Supplier Relationship have multiple definitions, shapes and extensions. There are diverse interpretations, especially considering that the determinants and their perceptions changed throughout the time. Yet, due to the globalisation, economic and political turmoil, a stable and intense Supplier Relationship Management is more imperative than ever. Hence, we tried to find the benefits and key approaches and techniques for enhancing the Buyer Supplier Relationship. Firms put emphasis on having good supplier-relationships and profit by doing so in long-run. Previously, however, this technique is sometimes instinctive, […]

How to Create a Supply Chain Strategic Plan

How to Create a Supply Chain Strategic Plan that Will Work for (Nearly) Any Business

2017 is about to start with new set of goals and challenges; it can be hard to know where you should first focus your efforts and what your supply chain strategic plan for coming year should be. After all, by now you’ve probably read so much about supply chain strategic plans that you’re left feeling overwhelmed and not sure of what needs to be done. When you feel like this, it’s important to take a step back and create your plan. In this post, we’re going to take a look at how you can create a supply chain strategic plan […]

Become Value Added Service Provider

Become Value Added Services Provider & Build Trust with Your Customers

The challenges of managing expectation and driving improvement for end customer can be challenging. For this reason, becoming Value Added Services Provider is becoming more and more important for manufacturers. In the coming years, I believes that industrial customers would seeking their suppliers’ assistance on an initiative-by-initiative basis to reduce complexity in supply chain, improve assembly configurations, provide out of the box environmental benefit, less packaging, reduce total cost of acquisition, improve quality and become thinking partner to drive total value addition in supply chain.  In this blog I examine the dynamics of industrial customer changing requirements by answering the […]