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Seven signs your supply chain needs a redesign By Simon Bragg, Richard Stone and Julian van Geersdaele From the Quarter 3 issue Comment Because supply chain redesigns are expensive and time-consuming, they often get deferred.
But if your company shows any of these warning signs, then you probably can't afford to put it off any longer. A supply chain redesign is the type of project that often gets deferred, especially when budgets are tight.
It is complex and time-consuming, and many organizations lack the needed skills and experience. Moreover, a thorough analysis may be expensive, which can be hard to justify in the current economic climate—even though in our experience, such analyses typically identify savings ranging from 12 percent to 20 percent of total warehousing and transport costs.
In addition, it is difficult to determine before embarking on the project what benefits a supply chain redesign project will uncover. These potential drawbacks deter many companies from initiating a supply chain redesign project. But there are times when a redesign deserves a higher Miscommunication in relationships.
Here are seven signs that it's probably time to rethink your supply chain network, along with some ideas about alternative network configurations. You have objectives rather than strategies.
The first sign that it may Miscommunication in relationships time for a redesign is that you are focused on supply chain objectives but lack a clear strategy. Often objectives are derived by taking last year's cost metrics, like cost per case delivered, and reducing them by a few percent.
What's more important, however, is how your group will achieve these objectives; in other words, what is your strategy? If your answer involves cheerleading speeches about "stretch goals" and hoping your team will execute more efficiently or effectively, then it's clear that you have objectives but no strategy.
Identifying a strategy everyone can agree on is important. That's because focusing the multiple functions on a single, universally agreed strategy is more likely to bring success than having the organization begin work on multiple, possibly conflicting, initiatives in parallel.
You and your group probably will have many ideas about what the strategy should be.
But in order to effectively evaluate the various options, you should use supply chain design tools, also known as network modeling software. This software makes it possible for managers to model, simulate, and fine-tune many different supply chain strategies.
Senior managers can then assess each one in terms of costs, benefits, and difficulty of execution. Once they have identified the workable strategies, they can prioritize which ones to implement first. These network modeling tools are especially good for designing multi-echelon supply chains—that is, supply chains that comprise suppliers' warehouses, manufacturing plants, and central, regional, and local warehouses.
Skilled users of the software can determine how many warehouses—and at which locations— will minimize total supply chain costs. Note that you do need skilled users who can accurately estimate the costs of new transport lanes and warehouses in different regions.
In addition, the tools calculate the minimum total inventory investment needed for the new supply chain in light of lead times, required service levels, and forecast uncertainties. Good tools also identify the products that should be held only at the primary distribution center DC and those that should be stocked at both primary and secondary DCs.
There are many strategies these tools can assess, including those for managing seasonality, manufacturing, and sourcing, to name just a few. Strategies for managing seasonality are relatively simple to assess. An important consideration is how best to manage the trade-off between building stock in advance of the peak sales season versus paying overtime for manufacturing to meet demand as it develops.
Good tools also allow managers to compare the cost of temporary warehousing versus operating throughout much of the year with excess space. Another factor to model is the forecast accuracy for each product. It can be wiser to build inventory of seasonal products for which demand is more certain—that is, stock the products that you know will sell—rather than hold inventory of products that may or may not sell.
Supply chain design software can assess some manufacturing strategies, such as where manufacturing should place the customer-order decoupling point the point in the manufacturing process where a customer's order rather than a forecast determines an activity.
Supply chain design tools can also help formulate global sourcing strategies and assess "make versus buy" decisions. Ideally, these decisions should not be left solely to the purchasing function.Have you ever been absolutely certain you heard someone say something they later claim they didn’t say?
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Want better results? Talk less and listen more. Listening might seem like the easiest thing in the world to do. But most people retain only a fraction of what they hear. Communication is Vital in Relationships. Proper communication is so important that many relationships get derailed as a result of miscommunication.
Conflict in Relationships Can Be Caused My Miscommunication Conflict in relationships is inevitable, but poor communication can increase the chances for conflicts to happen.
Poor communication is a source of relationship breakdowns, and typically contributes to work-related stress. Overview • Consistent patterns exist in relationships where one or more partners has ADHD that can be identified and managed once the partners are aware that some of the issues they are facing are related to ADHD symptoms (and the non-ADHD partners response to those symptoms) • Anger, frustration and emotional abuse are common in .
Eight predictors of divorce and/or continued couple misery that are characteristic of relationships when the partners are attempting to resolve conflict.