Warehousing and Distribution
Article | June 27, 2023
Oracle, a leading provider of computer technology, published a paper analyzing how supply chain managers should use change as a catalyst in "inspiring and engaging employees." In the report, Oracle highlights how organizations across the world are going through radical shifts in the way they operate.
Customers need quick, convenient, and customized solutions today. Employees also have higher expectations, looking for companies that are a match for their values, provide flexible working arrangements, and offer cutting-edge tools. Shareholders and investors also want more, which forces businesses to focus on making money in ways that are sustainable and diverse.
See Change as an Opportunity
The companies that are most successful, according to Oracle, are those who see change as just another opportunity to reinvent, and the company lists four ways supply chain leaders might find such an opportunity:
Boost employee engagement
Aim for sustainability and responsibility in management
Be quick to respond to disruptions in the supply chain
Exceed consumer expectations
In the paper, Oracle reports that instead of adapting to the change, organizations must be able to stay on top of challenges and prepare well in advance.
Align with an Employee-Centred Culture
Leaders must be able to attract well-matched talent, with the skills to not just fulfil job roles but also drive innovation. Today, people value a work-life balance where they have time to pursue their non-work interests, spend time with their families, and create a diverse, and inclusive world. According to Oracle, this is a significant consideration, and organizations that meet the demands of this new workforce will have a competitive edge in hiring the top talent.
Looking Forward
The Great Resignation has been a hot topic in HR, but the truth is it affects all aspects of business, and importantly, the supply chain, and in the end, the ability to provide smooth customer experiences. HR, customer experience, and supply chain leaders must synergize to become an employer destination to reckon with in order to succeed.
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Warehousing and Distribution
Article | June 16, 2023
In the past couple of years, supply chain management has witnessed massive disruption. The implications of the pandemic have put pressure on manufacturers to revisit and reimagine how they manage their supply chains. This is why ERP software is so mission critical in supply chain management. It not only helps supply chain chiefs reduce overhead costs but also enhance efficiencies and timely deliveries.Here are a few ways ERP plays a role in supply chain management to keep it moving.
Complete Visibility
Having a 360-degree view of the supply chain is integral to making the right decisions regarding procurement and purchase of materials and inventory. It also allows suppliers to have complete control and course correct when necessary. The insight into the complete supply cycle allows suppliers to respond to customer queries better.
Inventory Tracking
ERPs are truly a one stop shop for manufacturers. They feature extensive inventory tracking on one system so manufacturers are in the loop about inventory control and can better optimize their inventory and resources. For manufacturers it is crucial to know where their inventory is, what has been shipped, what is on hand at all times. With ERPs, it becomes cheaper to keep a stock of the inventory and place orders when it’s running low.
Vendor Performance
Vendor performance is an essential aspect of supply chain management. Being able to compare vendors, measure certain quality and quantity metrics and identify bottle necks help suppliers choose the right vendor as well as gives purchasing departments the power to negotiate for better pricing by consolidating purchase. ERPs allow suppliers to do all the above and more.
Procurement
Procurement of goods can be a complex process if done without the right tools. It also impacts the whole supply chain so it is doubly imperative to ensure the procuring and supply of goods is on time. This is especially true in an environment of custom manufacturing. Add to that the requirement of procuring products with lengthy lead times, manufacturers need to take into considerations product that need to be ordered long before they are even designed. ERPs allow manufacturers to keep all departments including engineering and warehousing to work in sync and plan to procure goods on time.
Real-time Reports
Reporting is labor intensive and can be inefficient when it comes to gathering and processing data. With ERPs, manufacturers can generate reports in real-time and all manual data collection processes are replaced with automation, saving time and money in viewing the insights into the movement of products in the supply chain. It enables manufacturers to get a better understanding and make timely decisions that improve the overall efficiency of the supply chain.
To Conclude
ERP systems offer endless opportunities for manufacturers to improve their processes, save time and resources and optimize and enhance inventory planning. With the right tools, it is possible to establish supply chain management that outperforms and is resilient even in disruptive times.
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Supply Chain
Article | August 17, 2023
Even though there are distinct differences between demurrage, detention and port charges, many are still oblivious to these differences and there have been several questions on this blog relating to these charges.
This article is about how demurrage, detention, and port charges work.
International Trade and CostsWhen it comes to international trade, majority of the buyers and sellers use Incoterms to decide what each other’s responsibilities and liabilities are in terms of the business, especially related to costs.
Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure that all known costs relating to the business are discussed and finalised before the shipment commences.
There are many entities involved in the process of shipping a container from Point A to Point B, each with their own cost component, all of which have to be covered either by the seller or the buyer.
Demurrage, detention and port charges are just some of these costs that may be applicable in a shipment.
While some of the port charges are valid and unavoidable, demurrage, detention and some of the port charges (like port storage, early arrival, late arrival, amendment, shifting etc) are entirely avoidable if everyone in the chain follows the process that they need to follow.
What are port charges?
Port charges, as the name suggests are a set of charges levied by the port or terminal which the container passes through.In terms of container shipments, port charges may include but not limited to below :
Terminal Handling Charge (THC)
Is quite simply the charge levied by the port for the loading and discharging of a container from the ship.. THC differs from port to port, terminal to terminal around the world and is charged both by the load port and discharge port.If the cargo is transhipped anywhere along the route, then the transhipment port also charges this THC but that is paid by the shipping line directly to the port and this quantum is usually included in the ocean freight charged by the line.
Early Arrival Charge
A charge levied by some of the ports/terminals for a container that arrives in the terminal BEFORE the stacks into which it is to be taken has been opened.. Early arrival can happen due to various reasons like a container missed the stacks for the previous vessel narrowly, but since the container is packed, it needs to be taken to the port, The acceptance of containers prior to the stacks/gate open is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels.
Late Arrival Charge
A late arrival charge is a charge levied by the port for a container that arrives in the terminal AFTER the stacks into which it is to be taken has been closed.. This could be due to delays in documentation, packing delays, inspection, trucking delays and many other situations.The acceptance of containers after the closing of stacks/gate is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels and if the containers can be accepted without disrupting the schedule of the vessel and ports.
Stuffing/Destuffing of Containers
Some ports/terminals allow the stuffing (packing)/de-stuffing (unpacking) of the containers within the port area and charge customers based on the port tariff.This activity may happen at ports that provide CFS services and allow containers to be packed or unpacked in the port or due to some mistakes when the cargo was originally packed – say incompatible hazardous cargoes packed together.Depending on the port/terminal/country, the port charges may be charged directly to the customer (importer or exporter) or to the shipping line, who in turn will charge this to the customer.
Of course, this is not the full list of port charges but these charges have been mentioned as it relates to the subject under discussion,Demurrage and DetentionWhile some of these port charges may be unavoidable, demurrage and detention charges on the other hand are avoidable charges, but in a lot of cases due to mishandling, miscommunication, misunderstandings and not following the proper protocols, these charges occur..When they do occur, these charges may create quite a financial impact on the whole business and sometimes these costs could be so prohibitive that some customers abandon their cargoes at the destination due to these costs.
Although the most common market practice is to combine demurrage and detention, there are several cases where these are charged separately, and therefore it is important to know the difference between demurrage and detention.
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Supply Chain
Article | November 11, 2022
The complexity of today’s supply chain has resulted in a highly fragmented supply chain ecosystem. Whether it is a global pandemic or an ongoing war, streamlining the moving parts in the supply chain management system is an immense feat in the current climate. The resulting shortage of materials, disruption of transportation, and delays have complicated the supply chain even further. Add to it the expectation to minimize expenses, optimize inventory, and enable quality and customer expectations, and stakeholders at every level of the supply chain are inundated with challenges.
This is where using advanced analytics in supply chain can be a game changer for many manufacturers. It can help them gain a deeper insight into their operations and how the supply chain is moving.
How Supply Chain Analytics Enriches Supply Chain Management
A 360-degree view of the supply chain is crucial for supply chain leaders. A lack of insight can cause costly delays and avoidable disruptions. Obtaining complete visibility in supply chain management, on the other hand, can be difficult. The immense volume of data that many organizations have to deal with makes it difficult to gain proper insight.
Supply chain analytics tools help in gaining a better sense of the aggregated data from different parts of the supply chain, such as procurement, ERP in supply chain management, warehousing management, shipping and logistics management, and many more. The more accurate the data is, the simpler it is to use advanced supply chain management analytics to forecast, predict, and plan better in order to maximize the supply chain’s capabilities.
Optimizing the Supply Chain: 3 Ways to Do so with Analytics
With the range of analytics applications in supply chain in use today, manufacturers have the opportunity to completely transform how to view, manage and strategize. Here are five data analytics supply chain tools to consider in the pursuit of optimization.
Demand Forecasting
Inventory management is at the heart of supply chain optimization. Not calibrating the inventory stock based on demand and supply for bestselling products and those that don’t move fast can cause either an overstocking or understocking problem. Either way, forecasting the right balance is difficult to achieve, but data analytics can make it simpler. The lack of the right products in stock can heavily impact the bottom line. According to a survey by Logility, 36% of supply chain experts consider inventory optimization the primary reason for adopting analytics. An integrated mapping of retail sales, inventory levels, and the flow of goods will lead to accurate demand forecasting.
This data can empower organizations to:
Strategize sales promotions
Define product pricing
Maximize budgets
Predict accurate inventory levels
Inventory management has a cascading effect on the supply chain, and advanced demand forecasting has helped many organizations achieve an optimum level of inventory for the right products.
Predictive Warehousing Maintenance
Machine Learning (ML), artificial intelligence (AI), and the Internet of Things (IoT) have been emerging technologies on the supply chain management landscape. By using a mix of these technologies, it is possible for manufacturers to deploy predictive maintenance in warehousing. Predictive maintenance is the process of assessing data generated from the past and in real-time to determine patterns and identify equipment failure and maintenance schedule before a breakdown occurs.
This helps manufacturers to:
Avoid heavy repair costs
Plan spare part supply
Slash downtime from equipment failure
Eliminate production delays
In addition to reducing production bottlenecks, predictive maintenance gives businesses the ability to manage their equipment and optimize their shelf-life.
Warehousing Efficiency
At the warehouse phase of the supply chain, analytics can help manage the supply chain in more than just one way. The warehouse workflow is just as crucial, as it facilitates a clear view of the condition of goods as well as the optimization of the warehouse space. In addition to warehouse space maximization, quality control is another challenge that warehousing management addresses.
Supply chain analytics can enhance warehousing efficiency by:
Ensuring the correct storage of goods based on their weight, fragility, and perishability
Aligning with resource management like equipment, vehicles
Identifying disruptions to storage before they occur
One of the advantages of supply chain analytics is getting a deep insight into the warehouse’s operation so manufacturers can identify gaps and take steps to make it more efficient.
Transportation Tracking
Real-time analytics of transportation and logistics is a crucial piece in the puzzle of supply chain management. For example, the data generated in relation to fuel consumption, weather conditions, and even traffic patterns can help organizations boost their logistics and carrier management.
It can help them to:
Schedule deliveries
Determine better routes
Evaluate current routes
Strategize their shipping schedule
To Wrap it Up
To put it simply, a deep insight into the supply chain, inventory management, and warehouse operations is a great way to ensure the supply chain is on track. Effective supply chain management software is an asset for an organization when it is able to leverage the insights and make well-informed strategies to further optimize the supply chain.
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