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Brexit viewed purely in economic term

The EU has certainly brought benefits to the UK. However, these benefits have come at a cost and this cost has been distributed unevenly across the UK. By cost, I don’t mean the annual contribution that we make but more the hidden costs associated with membership. In joining we have had to accept the demise of industries once at the core of UK life (fishing is an example) as well as turn our backs on countries outside the UK with which we have had historical trading ties (typically through the Commonwealth).

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In addition, the introduction of the free labour movement has seen not only the useful movement of skilled labour into areas where it is needed but also the flooding of the semi-skilled and unskilled markets with cheap labour. Bringing costs down is not a bad thing, but there are inevitably social consequences when it is achieved by reducing labour costs rather than improved processes.

In communities dependent on supplying labour into these latter markets, jobs have either become scarcer (supply of labour outstripping demand) or it has resulted in a depression in the wages paid to people as employers have a bigger potential workforce from which to draw (and the appearance of zero-hour contracts). In addition, these communities have found themselves inundated with migrant labour which has not only put pressure on existing infrastructure (hospitals, schools, etc) but has also alienated some people who feel like strangers in their own communities.

Migration in these areas has been more akin to an invasion rather than a steady integration. So, in short, the hidden costs of the EU have been distributed unevenly throughout the country. Add to this the pressure of austerity measures introduced following a recession caused entirely by the greed of unscrupulous financiers and you have the potential for large swathes of the population feeling ignored and disenfranchised.

Now throw into this mix the idea that the population of the UK will be given a vote on whether to stay in or leave the EU. What do you think is likely to happen? Well, just what did happen. Those areas of the country feeling the greatest pain have voted to leave. Those areas of the country suitably blanketed from the hidden costs have voted to stay.

To steal from Stevie Smith, Remainers are waving the leavers are drowning. So what does this all mean? It means that we all have to re-assess the real benefits/costs of belonging to the EU. We certainly need to address the issue of free movement and we certainly need to revisit the revival of industries that traditionally lie at the heart of the UK.

If this means leaving the EU, then the short economic term pain will be worth it if the long term social benefit is to bring the disparity parts of the UK closer together again.

BTW, did you notice that I made no mention of the MPs or anyone involved in the political process?

Why? Because vested interest and party politics are driving their agendas. What I am citing here is what the people of this country need – not the politicians.

Sources – Nemo’s comment

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4 Reasons for visibility within a supply chain system

Visibility encompasses not only sensing data but also how to analyse it and take appropriate action across a supply chain system. A supply chain system allows collaboration and communication between internal and external trading partners and should give visibility to activities up and down the supply chain. Significant benefits are gained from this end-to-end visibility, such as higher order fulfillment rates, improved customer service levels, increased operational efficiency, higher profitability, and revenue growth.

Order Fulfillment Rates

Order fulfillment rate is the percentage of customer or consumption orders satisfied from stock at hand. It is a measure of an inventory’s ability to meet demand. Also called demand satisfaction rate. The best solution to gaining visibility may be to invest in cloud technology capable of managing big data. This facilitates communication and the ability to make quick, informed decisions. Bearing in mind that order management and fulfillment has long been considered one of the core competencies of the supply chain—and business—success.

Customers Service Levels

Meeting the needs and demands of customers is by far the biggest challenges facing today’s supply chain professionals. Not only do customers expect to receive their products in a timely manner, they also want choices of when it comes to when (and how) those products are delivered. Visibility allows for business to respond as quickly as possible, know customers, fix mistakes, go the extra mile, think long term – A customer is for life. Customer Service Level has an impact on both existing customers and potential customers. A recent survey found that 68% of consumers would react by telling family and friends about a bad experience by posting it on a social network. And as each Facebook profile has an average of 229 friends, the reach of this experience can quickly reach thousands.

Operational Efficiency

One of the ways companies measure efficiency is with order fulfillment processes by looking at the Perfect Order Metric. A perfect order is one that is on time, complete, and undamaged, along with the correct paperwork to accompany it. This metric is similar to the fill rate. To determine the fill rate, divide the amount of work or product a supplier has provided by the total amount of work or product necessary. Imagine that a customer requests 60 cases of product from a business and the business has shipped 20 cases. The fill rate is 20 divided by 60, or 33.3 percent. Visibility of operational efficiency allows for continuous process improvement.

Profitability and Revenue Growth

As organizations look to increase revenues by expanding their product portfolios, they’re also introducing complexity and risk into their supply chains.  A 2017 global survey by supply chain consulting firm Geodis found that visibility has become a bigger concern among companies in recent years. In the report, 70% of respondents described their supply chain as “very” or “extremely” complex. Only 6% of those who participated in the study were confident that they have full visibility of their supply chain.  This has been attributed by the peerless research group study to the lack of necessary systems to handle the visibility (transparency).

Visibility enables the business to increase profitability by reducing cost and risk within the supply chain system. Achieving an increase in the business surplus which creates value within the supply chain simultaneously impacting revenue growth. As a supply chain management professional you are expected to leverage these benefits to facilitate business sustainability and competitiveness.

 

 

 

 

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6 Areas of focus when auditing a supply chain management process.

Supply chain management has become increasingly global and more complex, making risk management more challenging. To examine the challenges facing internal audit in a volatile and uncertain set of circumstances. This list below is 5 area of focus when auditing a supply chain management process.

  1. Planning
    • Defined governance for the full scope of the supply chain.
    • Definition of values and expected behaviors.
    • Consolidation of supply needs to enable economies.
    • Expression of user needs and specifications.
    • Predicted usage based on past experience.
    • Recognising key dependencies and critical points in a supply chain.
  2. Sourcing
    • Clarity on who can make supply chains decisions.
    • Application of procurement rules and regulations.
    • Assessing supplier track record and/or feedback.
    • Supplier selection appraisal mechanisms.
    • Supplier vetting checks and references.
    • Competitive tendering where necessary.
  3. Negotiating
    • Contract formation and service level agreements.
    • Pricing schedules with terms and conditions.
    • Identification, assessment, and ownership of risks.
    • Quality control and complaints process.
    • Defining the use of sub-contracting with monitoring.
    • Decision structure and process to agree on changes.
  4. Fulfillment
    • Ordering, logistics, and well-received process.
    • Receipt of invoices with authorization controls.
    • Payment terms agreed and implemented
    • Application of recognized accounting practice.
    • IT and data security.
    • Business continuity defined and tested.
  5. Consumption
    • Application of health & safety requirements.
    • Quality control measures and checks.
    • Inventory and storage control.
    • Relationship management.
    • Exception reporting and user feedback.
    • Obtaining and responding to customer feedback.
  6. Renewal
    • Supplier assessment procedures.
    • Budgetary control and usage monitoring.
    • Risk register updates for emerging risks.
    • Balanced scorecard and KPI monitoring.
    • Specifications reassessment and update.
    • Learning from issues and incidents.

However, it should be noted that a successful audit is one that accurately establishes the state of the audit subject and provides constructive recommendations for improvement.

Source

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Collaborative planning, forecasting, and replenishment (CPFR)

Supply chain integration (or synchronisation) is to a large extent still only a promise, despite many considerable efforts by organisations and their customers and suppliers. Lack of visibility of true consumer demand and collaborative relationships based upon joint decision making remain significant barriers to the goal of supply chain integration.

Collaborative planning, forecasting, and replenishment (CPFR) is a strategy which promises to overcome these barriers and seeks through joint planning, joint decision making and the development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration.

With firms taking cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). Using automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long‐range forecasts and layers of safety stock. That means optimizing demand forecasting,

However, a greater understanding of the elements that make up supply chain collaboration, and in particular how the relevant cultural, strategic and implementation elements inter‐relate with each other is highly recommended. click here.