supply chain best practices

19 Tested Areas to Seek Supply Chain Best Practices

Companies striving to achieve and sustain competitive advantage generally try to seek and implement supply chain best practices. It could be reasoned that these supply chain best practices significantly improve product quality, customer service level, increase market share and return on assets, and as a result, companies’ overall performance has been improved. The role of leadership, particularly transformational leadership, on implementing these supply chain best practices is difficult to explain and judge. However, what is visible that any efforts people make to implement supply chain best practices in pursuit of achieving competitive advantage will not go wasted. There are many saying like “it’s better to aim high and miss the […]

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. […]

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 […]

Supplier Partnership in Purchasing

Supplier Partnership Vs Traditional View of Supplier Management

Supplier partnership is commonly accepted view for last couple of decades. However, for the history sake I think it is worth writing about how traditional or old view was characterized, the key points were: There are many suppliers on the market, who can produce according to a certain specification. Neither seller nor purchaser is unique. To put pressure on the costs in the primary goal and the purchasing process is a guarantee that the market mechanisms should work. In the purchasing process the price is always the decisive factor. A lower price is always preferable. Supplier Partnership Definition and Characteristics: […]

Supplier Development Initiatives

5 Supplier Development Initiatives to Create Improvement Projects

In order for firms to compete effectively and survive in the global market, they must maintain and build relationships with a capable and competent network of suppliers and extract maximum value through such relationships. To create and maintain such a network and to improve capabilities that are necessary for the buying organization to meet its increasing competitive challenges, the buying firm may engage in Supplier Development Initiatives to improve the performance of supply base both reactively and strategically. But the question is where should those initiatives come from in your Supplier Development Programme? Supplier Development Initiatives In my experience Supplier […]

Supply Chain Management Book

Which is The Best Supply Chain Management Book? Top 7 for Beginners

“Which is the best Supply Chain Management Book for beginners like me to learn operations and supply chain?” someone ask me on Quora. And I thought I could write a blog on this and can mention 7 of them, rather than 1!  Although Supply Chain Management can be encapsulated in a definition presented in my old blog here, however, these definitions explode into an immeasurably vast field not only for studying but also for working within. There are so many sub-fields and branches that it can be quite confusing to determine which area you wish to study or specialise in. […]

JIT System

JIT System and Supply Chain Management- 5 Salient Features

A JIT System (Just- in-time System) is an inventory management philosophy aimed at reducing waste and redundant inventory by delivering products, components, or materials just when an organization needs them. When I wrote a blog on JIT Purchasing there has been quite a lot comments and interest from the supply chain community on how it fits in overall inventory management system, therefore, I thought to expand on this topic.   It is well known fact that Kanban and JIT System were developed by the Toyota Motor Company during the 1950s and 1960s. The philosophy of Kanban and JIT System is […]

8 Must Have Supply Chain Competencies

Technical Supply Chain Competencies The underlying Supply Chain competencies are skills, knowledge and characteristics that support the effective performance as Supply Chain professional.  Given the global Supply Chain demands Supply Chain professionals should never stop developing new skills and enhancing existing ones. Here are 8 core Supply Chain competencies that Supply Chain professional need to master—and continually improve. Capacity Planning The ability to determine the production capacity required by a supplier or a company plant to meet forecasted customer demand.  The capacity planner must be able to calculate the maximum amount of work that an organization is capable of manufacturing in […]

7 Questions You Need To Ask Before Starting Continuous Improvement Project

I have seen lot of Continuous Improvement (CI) Projects or Kaizen events started with lot of enthusiasm but more than often done badly,  and then the whole enthusiasm fads away… Why does this happen? It happens mainly because project scope or problem statement is not defined clearly, or in other words it is unclear that “how success is look like”. Since the sponsor wants it to look good. So they try to fudge the outcome or results in strange places with often obscure methods. It might look good for short while but it doesn’t effectively work. Fail in long term! If […]