In Supply Chain Management (SCM), efficient inventory management is the result of a combination of interdependent procedures that work together to promote robustness and efficiency. Making wise decisions is necessary for inventory optimization in order to preserve equilibrium, reduce carrying costs, and avoid stockouts. Warehouse management uses sophisticated warehouse management systems and tools like SAP MM to guarantee effective product storage, retrieval, and dispatch. Shipping administration, which integrates technologies for route optimization, real-time tracking, and effective returns management, is essential for the efficient, dependable, and quick delivery of goods. Understanding and projecting customer demand is a key component of demand planning and forecasting. Our future product demand predicted by combining historical sales data, market intelligence, forecasts for raw materials, and predictive analytics. By proactively adjusting production schedules, procurement tactics, and supply plans, businesses can avoid stock-outs and guarantee that capital is not tied up.
Author: ikram
What Makes Toyota’s Supply Chain Management a Benchmark for Excellence?
Toyota has an effective supply chain strategy that puts value and efficiency first. It has adopted the Just-In-Time (JIT) system, which guarantees on-demand delivery of materials and components while cutting waste and inventory expenses. By employing a tiered supplier system and incorporating employees at all levels in cooperative improvement initiatives, Toyota also cultivates long-term relationships with its suppliers. The Toyota Production System (TPS) maximizes efficiency while reducing waste and overproduction. To match production schedules with market demand, the organization employs sophisticated demand forecasting systems. Toyota also uses buffer stockpiles for essential components and dual-sourcing tactics to proactively manage supply chain risks. For improved supply chain monitoring and predictive analytics, the business incorporates cutting-edge digital technologies like IoT and AI.
What is Cycle View of a Supply Chain? Is it Useful? |
The processes in a Supply Chain are usually divided into a series of cycles, each performed in the interface between two interrelated successive stages of a Supply Chain. Sub-processes in each Supply Chain Process Cycle I.e., each cycle comprises six sub-processes, supplier stage markets a product, buyer stage places order, supplier stage receives order, supplier stage supplies order, buyer stage receives supply, buyer returns reverse flows to a supplier or the third party.
A discussion about Unilever’s Supply Chain Management : A Case Study |
Unilever’s vast operations require a robust SCM to manage the flow of materials across continents and the company is committed to sustainable sourcing practices. Unilever’s supply chain management includes advanced technologies and lean manufacturing principles to optimize production and minimize waste. The company also uses a sophisticated logistics network for timely delivery of products and is embracing digital technologies to enhance supply chain visibility and efficiency, including the use of IoT sensors, AI-powered analytics, and blockchain. Unilever is a pioneer in sustainable practices, such as palm oil sourcing and achieving zero waste to landfill status in many factories, showing its commitment to environmental sustainability. Suppliers who meet Unilever’s criteria for climate leadership can sign the Unilever Climate Promise to demonstrate their commitment to sustainability.
How supply chain planning works: A discussion in brief |
The uncertain nature of the customer demand need to take into consideration by generating the production plan and in particular the production quantities, to meet uncertain customer demand in the best way possible and maximize the profit, by minimizing production costs. Aggregate planning is a process by which a company decides about their ideal levels of capacity, production, inventory, stock-out situations, pricing, subcontracting, etc. Production planning, is the correct placement of production orders concerning place, or region, of production, and time scheduling and sequencing of production orders. The parameters are usually production rate, workforce, overtime, machine capacity level, subcontracting, backlog, and inventory on hand. The amount of overtime production planned is a parameter for aggregate production planning. Production planning for fashion apparel products has to cope with demand uncertainties. Collaborative forecasts created by various enterprises are an important input in aggregate supply chain planning. However, at the time of generating the production plan, the predicted customer demands are largely uncertain.
What is International export and outbound logistics of goods? |
In the international export trade, goods and services, i.e., international export and outbound logistics, goods and services are sold and shipped out of the jurisdiction of the country and customs authorities. While exporting to developed countries, Bangladesh gets some tariff facilities. It is nothing but helping the developing countries in export trade and industrialization, on the other hand, they regulate some products to enter their country at a lower price. Currently, Bangladesh is enjoying tariff-free market access for 90 percent to 100 percent of products in all the developed countries except the United States. Tariff-free and low-tariff market access facilities in developed and some developing countries immensely benefited Bangladesh. Bangladesh High Commissioner to Ottawa wrote that quality of Bangladesh’s apparel products as well as the efficient supply-chain mechanism has largely contributed to doubling bilateral trade in a decade.
The post Covid-19 Supply Chains: A Brief Discussion |
The U.S.-China trade war and the Covid-19 crisis have prompted manufacturers worldwide to reassess their supply chains, focusing on increasing domestic production, boosting employment in their home countries, reducing dependence on risky sources, and rethinking lean inventories and just-in-time replenishment strategies. The pandemic has exposed vulnerabilities in production strategies and supply chains, leading to increased political and competitive pressures. Modern products often require specialized technological skills, and manufacturers often rely on suppliers and subcontractors who focus on specific areas. However, relying on a single supplier deep in their network increases disruption risks. To mitigate these risks, manufacturers should categorize suppliers as low-, medium-, or high-risk, using metrics like revenue impact, factory recovery time, and alternate sources.
