Article Archive

Taming the Cost Dragon
(October 07, 2019)

(Sustainable Cost Reduction in good times and bad times)

In his book, “The Goal,” Shigeo Shingo emphasized cost reduction as one of the three primary goals of the firm. The other two ar... Read more

6 Trade-offs CEOs face in Managing their Supply Chain
(September 16, 2019)

With the ever-present challenge of sustaining revenue growth, making the supply chain more effective and efficient is always an opportunity to deliver business objectives. Managers, however, sometimes fall into the trap o... Read more

3 Ways to Manage Product Returns
(September 09, 2019)

Product returns are products sent back from customers for a number of reasons such as:

  • Defective/damaged goods
  • Off-season/expired merchandise
  • Excess quantity versus orderedRead more

    How to Deal with Inaccurate Forecasts
    (September 02, 2019)

    Many organizations that have implemented Enterprise Resource Planning (ERP) find themselves today wanting for supply chain improvements. While ERP may have enhanced integration among functions, Demand Forecasting, a key d... Read more

    Beyond Awarding Business based on the Lowest Price
    (July 22, 2019)

    "It is unwise to pay too much; but it is worse to pay too little. When you pay too much, you lose a little money --- that is all. When you pay too little, you sometimes lose everything, because the thing you bought was... Read more

    Optimizing Storage and Transport Cost
    (June 17, 2019)

    A challenge for supply chain managers in the 21st century is the spectre of increasing logistics costs.

    As firms work to increase demand of their products via the efforts of their sales and marketing depar... Read more

    Supply Chain Collaboration: It’s Not a Choice
    (May 31, 2019)

    Academics have espoused the ideal supply chain as one that integrates firms from where materials are originally sourced to downstream to the final consumer. For a soft-drink manufacturer, for instance, this can be from th... Read more

    Three (3) Signs You Need to Fix your Supply Chain Systems and Organization
    (February 06, 2019)

    Supply Chain Management has gained much prominence as a means for firms to deal with intense competition across all industry segments and relate with more value-conscious customers.

    In companies where growt... Read more

    Changing markets, shifting Supply Chains
    (November 19, 2018)

    Supply Chain Management (SCM) involves the coordination of the three main functions of Purchasing, Manufacturing, and Warehousing & Distribution (Logistics) with trading partners such as Suppliers, Distributors, and Retai... Read more

    Supply Chain Trends, Issues, and Challenges
    (November 05, 2018)

    For the past 15 to 20 years, many companies have realized the strategic importance of streamlining their supply chains. Whether firms seek to increase revenue or reduce costs, supply chain management plays a key role in e... Read more

    Cutting down costs
    (October 02, 2018)

    In a large company I worked with some months back, budget managers complained that operating expenses were increasing year to year. Executives therefore mandated aggressive targets in the forthcoming year’s budget. Oper... Read more

    Three (3) Logistics Mistakes that Could Ruin Your Competitive Advantage
    (September 17, 2018)

    The Internet has allowed industries to reach new markets faster than anyone has ever imagined. E-commerce revenues in some companies such as Wal-Mart have accelerated so much so that businesses have shifted capital spendi... Read more

    Are you forecasting the market or marketing the forecast?
    (September 11, 2018)

    Forecasting is a process of combining all elements of demand and translating it into what the company intends to sell in the future. Forecast numbers drive the planning activities of the firm which includes Marketing, Sal... Read more

    Three (3) Inventory Mistakes that Contribute to Sales & Profit Losses
    (August 17, 2018)

    The primary goal of an enterprise is to serve customers and generate revenues. Inventory is a key instrument in this regard. In this sense, inventory management is the means to profitably serve customer requirements.
    Read more

    Fixing the Out-of Stock Problem (The journey to Perfect Order)
    (July 31, 2018)

    An out-of-stock situation happens when customers place an order and there is no available product to serve the order. This constitutes a lost opportunity for the firm as customers can’t buy what’s not there. Out-of-st... Read more

    Understanding Customer Demand Patterns
    (July 25, 2018)

    Supply chains have improved significantly in recent years. Firms have integrated procurement, manufacturing, and logistics via available information technologies. Executives have learned to measure their customer service ... Read more

    How are you managing your Fixed Assets?
    (July 16, 2018)

    Information technology (IT) systems have gone a long way in improving the operations of firms. Enterprise Resource Planning (ERP), for instance, has helped companies reduce inventories and increase service reliabilities. ... Read more

    Cost Reduction: Still a source of Competitive Advantage
    (July 10, 2018)

    Eliyahu Goldratt in his book “The Goal” stated the three main goals of an enterprise: Increase Throughput, Reduce Operating Cost, and, Reduce Inventory. Any other effort not impacting on these three would be a waste o... Read more

    The Role of Supply Chain Management is to Meet Customer’s True Demand
    (July 03, 2018)

    How much a firm sells supposedly depends on the demand of individual end-users or how much a user really needs. This is known as true demand and it is said that the firm who captures and serves this demand successfully v... Read more

    Sales Returns: Flow of Goods in Reverse
    (June 22, 2018)

    Sales returns are products sent back from customers for a number of reasons such as:

    - Defective/damaged goods

    - Off-season/expired merchandise

    - Excess quantity versus ordered... Read more

    The Increasing Volatility of Consumer Demand
    (June 14, 2018)

    In a recent Supply Chain survey we conducted in the Philippines, 2 out of 3 respondents cited increasing demand volatility as their number one challenge in managing their supply chains. This strengthened our hypothesis t... Read more

    Supply Chain Trends, Issues, and Challenges
    (February 07, 2018)

    For the past 15 to 20 years, many companies have realized the strategic importance of streamlining their supply chains. Whether firms seek to increase revenue or reduce costs, supply chain management plays a key role in e... Read more

    Building a Dynamic Supply Network: Responding to Consumer Demand Volatility
    (January 10, 2018)

    2017 was a barometer of how company supply chains performed. Consumer good firms in North America built up inventories and logistics capabilities, which resulted in the best sales results in years. Global shipping lines c... Read more

    Transforming the Product Delivery Process (The Amazon Effect)
    (December 22, 2017)

    Large manufacturers and giant retailers were caught off-guard by Amazon in their now famous same day or next day delivery process.

    For years, supply chains in many industries were dominated by a structure c... Read more

    Speed Advantage
    (November 15, 2017)

    Customers want their products and services when they say they need them. As much as quality and price are part and parcel of vision and mission statements of firms, timeliness has become the forefront of focus of many com... Read more

    Fixing the Out-of-Stock Problem
    (September 20, 2017)

    An out-of-stock situation happens when customers place an order and there is no available product to serve the order. This constitutes a lost opportunity for the firm as customers can’t buy what’s not there. Out-of-st... Read more

    Inventory Variances: Persistent Nuisances Hindering Growth
    (August 23, 2017)

    Inventory variances or discrepancies between what are actually on stock versus what are on records are key irritants that hinder business growth. It is an issue that is often discussed in executive meetings especially whe... Read more

    Managing Supply Disruptions [Business Continuity on Goods Flow]
    (August 02, 2017)

    Companies have realized that supply chains can be very vulnerable not only to disasters but also to frequent less-damaging but unpredictable disruptions. Risk management is therefore not limited to managing against disast... Read more

    Economic Order Quantity (EOQ) & Re-Order Point (ROP): Past Concepts with Lessons for the Present
    (July 12, 2017)

    Someone once said “Today’s systems and procedures were designed to meet yesterday’s problems.” This maxim holds true especially if the problems continue to persist in the present. However in most cases, th... Read more

    The 99% Service Ideal
    (June 20, 2017)

    During any Christmas holiday season in the Philippines, it is normal to see frantic shoppers snap up supermarket groceries and watch frenzied product merchandisers try to keep shelves filled. At the fruit cocktail section... Read more

    The Strategic Role of Warehouse Management
    (June 01, 2015)

    Storage of products come in various forms such as silos, tanks, garages, and stock yards. The warehouse, however, is the most visible of all forms of storage facilities. It is in this respect that many firms equate storag... Read more

    Reducing Costs Effectively
    (May 01, 2015)

    Eliyahu Goldratt in his book “The Goal” stated the three main goals of an enterprise: Increase Throughput, Reduce Operating Cost, and, Reduce Inventory. Any other effort not impacting on these three would be a waste o... Read more

    The Supply Chain’s Role Towards True Demand Fulfilment
    (March 01, 2015)

    How much a firm sells supposedly depends on the demand of individual end-users or how much a user really needs. This is known as true demand and it is said that the firm who captures and serves this demand successfully ve... Read more