The links in the supply chain are by no means strong and effective. The benefits of strong linkages are clearly higher service, less inventory, and lower costs. Today, many of the linkages between customer and supplier are weak. But so too are linkages in most company's internal supply chain. For examples of weak linkages in the supply chain, this article will look at the connection between purchasing and manufacturing, production and shipping, as well as between logistics planning and execution. Unfortunately software has done little to enhance supply chain logistics linkages but a new generation of functionality is supporting growth.
Production and distribution even in the same plant are often not tied to each other. Distribution complains that they are the recipients of push from manufacturing to distribution. In the internal supply chain, the logistics of push is hard to deal with. Each hour the warehouse is faced with decisions of where to put product as it arrives off the line. This is far from a linked activity.
In the sad but true category is the story of the pushy purchasing manager who got a promotion by getting a different bottle supplier for a filling plant. The supplier was miles away and unable to keep up, forcing the production lines to be scheduled based on what bottles could be delivered. This purchasing decision to switch suppliers, which is not uncommon, saved little and created a rift between manufacturing and purchasing while creating a dysfunctional supply chain with more of the wrong inventory filling hastily secured outside warehouse space.
Often the people negotiating with carrier are not the same people who, on a day-to-day basis, deal with tendering shipments on loading trucks. This generates higher logistics costs as, for example, the lowest priced carrier also provides equipment that cant haul as much weight as a modestly higher cost carrier with lightweight equipment.
DRP planners often create plans that the loaders in the warehouse cant execute. For example, trying to ship 30 pallets of product having a pallet layer pattern that over-hangs the pallet by 2 inches each direction. There is no way this fits on the truck! Result " logistics misery " cutting product and creating potential shortages.
Getting internal supply chain integration required both the right systems and supply chain wide integrated incentives. These incentives require all people in the organization to gain when, as a whole, the operations prosper.. To enhance communications systems need to operate at a grandular level " small time means. These short intervals are needed to manage dynamic operations where often things happen just-in-time.
There are two systems that work to coordinate operations. A good vehicle load builder designs loads that max out the trailer while providing detailed instructions to the loader. These instructions tell where each pallet case should be placed. Another system that supports supply chain logistics optimization is a distribution master scheduler. Scheduling each activity, from line-take-away to where and when a customer shipment should take place " all in a 10-minute time frame created a capacity constrained plan that optimizes activities.
When you consider a transportation consultant, Transportation | Warehouse Optimization have been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for lift truck operators. Transportation | Warehouse Optimization - Solutions that work. Solutions that save. - 15246
Production and distribution even in the same plant are often not tied to each other. Distribution complains that they are the recipients of push from manufacturing to distribution. In the internal supply chain, the logistics of push is hard to deal with. Each hour the warehouse is faced with decisions of where to put product as it arrives off the line. This is far from a linked activity.
In the sad but true category is the story of the pushy purchasing manager who got a promotion by getting a different bottle supplier for a filling plant. The supplier was miles away and unable to keep up, forcing the production lines to be scheduled based on what bottles could be delivered. This purchasing decision to switch suppliers, which is not uncommon, saved little and created a rift between manufacturing and purchasing while creating a dysfunctional supply chain with more of the wrong inventory filling hastily secured outside warehouse space.
Often the people negotiating with carrier are not the same people who, on a day-to-day basis, deal with tendering shipments on loading trucks. This generates higher logistics costs as, for example, the lowest priced carrier also provides equipment that cant haul as much weight as a modestly higher cost carrier with lightweight equipment.
DRP planners often create plans that the loaders in the warehouse cant execute. For example, trying to ship 30 pallets of product having a pallet layer pattern that over-hangs the pallet by 2 inches each direction. There is no way this fits on the truck! Result " logistics misery " cutting product and creating potential shortages.
Getting internal supply chain integration required both the right systems and supply chain wide integrated incentives. These incentives require all people in the organization to gain when, as a whole, the operations prosper.. To enhance communications systems need to operate at a grandular level " small time means. These short intervals are needed to manage dynamic operations where often things happen just-in-time.
There are two systems that work to coordinate operations. A good vehicle load builder designs loads that max out the trailer while providing detailed instructions to the loader. These instructions tell where each pallet case should be placed. Another system that supports supply chain logistics optimization is a distribution master scheduler. Scheduling each activity, from line-take-away to where and when a customer shipment should take place " all in a 10-minute time frame created a capacity constrained plan that optimizes activities.
When you consider a transportation consultant, Transportation | Warehouse Optimization have been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for lift truck operators. Transportation | Warehouse Optimization - Solutions that work. Solutions that save. - 15246
About the Author:
Tom Moore and his associates at Transportation | Warehouse Optimization will help you reduce freight rates and save you money. Transportation | Warehouse Optimization consults with companies such as Procter & Gamble, BP and many other CPG companies. They can help you reduce freight rates and save money.
