Category: Supply Chain

Innovative Planning, Superior Results.

Supply chain working together

Understand your whole supply chain

We have heard a lot recently about supply chain disruption. Covid-19, Brexit, trade wars, semi-conductors, big ships stuck in small canals. And it does not get any better. Here is another potential shortage. Plastics. https://hbr.org/2021/03/the-latest-supply-chain-disruption-plastics So, what is the solution. Well, its one we have discussed here and on social media many times in the…
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How Toyota really use inventory

Many people mistakenly think the Toyota way is about holding zero inventory. Finance directors in particular love to quote it in meetings. And in a way they are correct. In a perfect world we should not hold inventory. Inventory hides inefficiency. Inventory is comfortable for the planning department who don’t have to pay for it.…
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SCM Fundamentals: RCCP

Continuing our SCM Fundamentals series of posts the next step in the process is the Rough-Cut Capacity Plan.  It takes the output from the Master Schedule and starts to analyse it in a bit more detail. It breaks it into smaller time buckets (most likely weeks) and at a more detailed level in terms of…
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Resource Planning

SCM Fundamentals: Resource Planning:

Now from recent articles you should have good understanding of the demand you need to fulfill we will now start looking at the other side of the equation.  Supply.  As we discussed previously the constant struggle in business is the demand to balance supply and demand.  The first step when looking at supply is to…
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Production Planner

SCM Fundamentals: Demand Management

In recent articles we have spoken about the different types of demand you will see in your business how do you manage all that. Well as we looked at each part, forecasts, customer orders, stock demand, we discussed different methods for managing each one.  Demand management is how we manage all those elements into one…
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Medical Consignment Stock

SCM Fundamentals: Consignment Stock

Consignment stock is similar in many ways to safety stock. But unlike it is stock that is legally owned by one party (the supplier), but held by another party (maybe the customer, possibly someone in between like a hub or distribution centre).  This means that the risk and most of the rewards for holding said…
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Safety Stock and excess demand

SCM Fundamentals: Safety Stock

Safety stock is a buffer against risk and uncertainty.  It is designed to reduce or eliminate stock outs due to unforeseen events in your supply chain. If you do not hold enough safety stock you risk a shortage situation with your customer.  Safety Stock creates demand because you need to produce enough stock to meet…
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Factory Supply Chain

Supply Chain Management will increase in importance post Covid-19

I came across an interesting article about how Supply Chain Management is finding a new level of importance on the agenda in many Boardrooms. Supply chains have often fallen under the VP of Operations responsibility on many boards. It was often seen as the simply moving around the output from operations. But in many corporations…
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SCM Fundamentals: Customer Orders: Part 2

In the last post we looked at what types of customer demand you can expect to see in your system.  Now we will look at what information will be on the actual order that you get from the customer.  This is important because by accepting the order you are in effect entering into a form…
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SCM Fundamentals: Customer Orders: Part 1

Now that we have talked in depth about forecasting what the customer will order we finally get to talk about what the customer will actually order. So what are the different types of customer demand  Sample Requests: This may be the first order for an item you will get from a customer. Often your sales…
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