supply chain risk

10 Supply Chain Risks You Need to be Mindful of to Avoid Disruption

As supply chains have lengthened and more complex, supply chain professionals are increasingly responsible for anticipating and eliminating a greater number of supply chain risk. The stakes are high: in the past five years, nearly three-fourths of companies experienced significant disruptions. Which makes topic of ‘supply chain risk’ very important in current context. 1.    Supplier Risk There are several supply chain risks involved with working with other companies especially in the supply chain where there is high dependency on the other firms. These supply chain risks can vary from a supplier going bankrupt to not delivering the right quantity of […]

Safety Stock Formula

6 Safety Stock Formulas You Can Consider in Your Next Calculation Cycle

Safety stock is a term used to describe the additional quantities of stock held by a company to mitigate the risk of running out of stock. This therefore acts as a buffer in case the supply and demand are different to what was planned or forecasted. There are many ways in which to calculate safety stock and there are plenty of Safety Stock Formulas available which you could use. Below we will go through 6 different Safety Stock formula definitions to get a comprehensive figure for safety stock. At the end we’ve given you a ‘bonus track’ of EOQ calculation! […]

online supply chain management courses

The 12 Great Online Supply Chain Management courses For The Modern-Day Supply Chain Professional

Modern-day Supply Chain Professionals are expected to be competent in a number of skills, including analytical skills,  supply chain modelling, devising supply chain strategy, strategic sourcing applying lean and six sigma tools in supply chain and more. Except you are ready to invest and commit years of your life to getting a degree for each discipline, you need a quicker, more actual way to close the skills gap and keep yourself relevant in a changing market. Get your Supply Chain career the needed boost it requires with these popular online supply chain management courses. So what are your options? Well, […]

TRAVELING SALESMAN PROBLEM & THE 8 “RIGHTS” OF LOGISTICS

The supply and distribution is a complex and above all costly procedure. Many organisations fail to save these expenses due to lack of proper planning. Planning the routes when supplying several customers, located on diverse places, can reduce these costs, time and distance immensely. Therefore, this article aims to illustrate the issues when distributing and the advantage of having the travelling salesman problem (TSP) solution, while addressing the eight “rights” of logistics. Travelling Salesman Problem Gutin & Punnen, (2004) explain that TSP is dealing with determining the optimum geographic route, in which the salesman begins from his domicile, visits a […]

Inventory Management Model

The ABC-XYZ Inventory Management Model – Align Planning Parameter with Business Goals

Why Consider Inventory Management Model? One of the leading problems in SCM is the optimization of inventory. Inventory is actually a consequence of other business parameters and policies, such as:   Company goals and objectives: sales target, fill rate goals, purchase price variance, etc Operational policies and parameters: lead times, lot sizes, change over times, safety stocks, replenishment model, frequency and length of planning cycles, etc Efficiency in the execution of those policies: forecast accuracy, manufacturing & quality performance at all levels of the supply chain, etc Number of discrete levels in the business model: vendors, warehouses, factories, distribution centers, etc […]

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 […]