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The Problem Statement

For many companies in consumer goods, retail and other industries, also referred to as shippers, the diversification of distribution channels from a single channel to an omni-channel structure includes many challenges. One challenge we want to focus on in this article is the impact on managing inventory and demand fulfillment in global logistics. How can we manage and understand the global movements, irrespective of how the shipper or logistics provider, also referred to as carrier, manages the global product flow? The key business questions are:

  • How do you achieve visibility and control in a global multi-node supply chain?
  • Where is my order and where is my inventory?

Continue reading “The Omni Channel Challenge in Global Logistics” »


The Problem Statement

Ever since the early 80’s we have worked with a traditional 4 tier planning and execution architecture incorporating all the major elements of a supply chain, namely demand, distribution, production and suppliers. The 4 tiers include strategic planning, tactical planning, operational scheduling and execution or also referred to as the transactional backbone.

Continue reading “Planning Architecture in a Omni-Channel World” »


The Problem Statement

It is time to change course. Indirect procurement has been treated as a stepchild for too many years. Whilst many companies invested in new procurement platforms, the indirect procurement area has always been kept separate from the mainstream core business and their processes. When company refer to procure to pay or now source to pay, then they meant the direct side. However, significant synergies can be achieved by cross using the approach, platforms for methods across the two areas of procurement.

Continue reading “New Frontier in Procurement” »


The Problem Statement

The effect on maintaining the same item in more than one location on the overall levels of inventory escapes many practitioners. The principal problem is that an item stocked in multiple location increases the overall inventory levels. The key to the problem is the term location. Whilst we all understand physical warehouses being a location where inventory is stored, location can also be virtual locations or contracts where inventory is ring-fenced. Let us explore what this all means; we start with the relationship of inventory levels and the number of locations described in the square root law.

Continue reading “Square Root Law” »


The Problem Statement

Lead time is not static. Lead time is dynamic and depends on various factors. One of those factors is load. Load is the amount of work loaded into a fixed and available capacity. As capacity is consumed, any new work has to wait for free capacity slots. Hence lead-time changes with the amount of work loaded into capacity and when free capacity is available. Many ERP systems and companies work with fixed lead times because they cannot easily determine the time changing aspect of capacity load and the resulting variation of lead-time.

Continue reading “Lead Time Variability caused by Load” »