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- Materials Logistics Tips for the Construction Industry
Poor materials logistics costs the construction industry more than $2 billion dollars every year. Too often, logistics in the construction industry revolve around on-site handling which is usually too little to impact on the total cost of completing projects. According to Liker, a famous philosopher, waste is defined as the opposite of value where value is any process that a customer is willing to pay for. Waste is also used in reference to resources that add negligible or no value to the final product. Waste is therefore loss of resources including time, materials, equipment, labor and capital, when these resources are produced by activities that contribute to the final cost but do not add value to the final product. In the construction industry, after the design is agreed upon, most of the value adding usually occurs at the site. Activities that add value are assembly, packaging and finishing. Other activities such as moving, counting, storing, scheduling and sorting can therefore be said to be wasteful. Unfortunately, research blames the supply chain for most of the wastes in the construction industry. One report went as far as saying that wastes in the construction industry are mainly caused by “obsolete, myopic control” of the supply chain. What is materials logistics and how can it help? What is materials logistics and how can it help? Delivering materials to the construction site is one of the most important activities in the entire construction process. It directly affects productivity and therefore needs to be monitored from early days to ensure control of material flow. For example, the time you spend loading material could have been used in more constructive activities. Then you also need to store this material. Does the storage add any value to the production process? No. Material logistics is defined as the art of moving, lodging and delivering troops and equipment. It is an interface between parties and involves planning, co-ordination, organization and control of the flow of construction material for the whole supply chain (from sourcing for raw materials to the finished project). If implemented correctly, material logistics alone can save you at least 5% of the total cost of construction. Much of the savings are usually realized through reduction in material wasted as well as early completion of projects. Benefits also include reduction in absence and an increased satisfaction of craftsmen. There are usually also fewer delays on the site, a stabilized work flow and generally less wastage. Materials logistics ideas for the construction industry Materials logistics ideas for the construction industry Every construction company should have a special material logistics expert who should be allowed to plan the logistics from very early in the construction. This will encourage competitiveness and strengthen buyer-supplier relationships. Planning and structuring should be done with focus on enhancing logistics to increase value of work while cutting out wastages. Effort should also be put in matching the right products and methods with the right people. It has been discovered that utilizing the strengths of every organization in the supply chain, a win-win philosophy and developing a long-term perspective are critical in gaining a competitive advantage. The construction industry, in its quest to adopt logistics at every level of work, must learn and take inspiration from other industries. For example, the extensive success already demonstrated by the automotive industry can be a great source of inspiration. Materials logistics is an approach that will take construction managers out of their comfort zones, but one that promises unrivaled efficiency and cost-effectiveness. It is always worth a try.
- How to Manage Retail Logistics Costs
The success of your business depends so much on the quality of your retail logistics. Everything, right from sourcing for raw materials to transportation, delivery and installation will influence the success of the business. Where there is a smooth flow of operations, usually as a result of solid retail logistics, it becomes easier to satisfy your customers at relatively lower costs leading to higher returns on investment. Of course, retail logistics is such a critical component of your business so it may be hard to even contemplate outsourcing it. But if you take a moment to think about it, you’ll realize that working with a third party logistics provider may be just what you need to offset your profits. The advantages of using third party logistics mainly result from economies of scale and economies of scope, both of which encourage retailers to increase net profits by reducing costs. Competent 3PL providers boast superior coordination ability which enables them to search for and find reliable sub-contractors and business partners. Normally they also possess the ability to better manage inter-firm flow of goods. Logistics is very technical and time consuming. So by outsourcing, you will save a lot of time which you can invest in other areas of the business. Here are 5 other reasons in retail logistics, why you should seek the services of a 3PL provider: Minimizing basic expenses Minimizing basic expenses By outsourcing, you avoid costly overhead expenditure on items such as insurance, fleet maintenance, cross-docking expenses and fluctuating demand among others. You won’t have to compensate any workers or pay employee wages, nor will you have to worry about maintaining the in-house staff. At the end of the day, you can talk about reduced costs of transportation, installations, delivery and warehousing while reaping the benefits of transparent and predictable pricing. Efficiency of operations Efficiency of operations When you have a 3PL provider, you can hold them completely accountable for dealing with your warehousing, transportation, installations and deliveries as well as after-market support. If you feel they are not delivering up to your standards, you can easily dismiss them and get a new provider. Focus on income generating aspects of the business Focus on income generating aspects of the business Outsourcing also allows you to focus on your products and customers. It may be possible to do the retail logistics on your own but 3PL providers will always do it much better. They are experts at it because it’s what they wake up to every morning. When you finally find the right retail logistics partner, you’ll discover a new lease of life; your customers will be satisfied and the business will thrive because you will be doing what you do best, as the 3PL partner also does what they do best. Opportunity for innovations Opportunity for innovations Two heads are always better than one. When you and your logistics partner work together to achieve a common goal, it becomes much easier to get to the finish line. These are people who possess in-depth knowledge and vast experience in logistics. They can commit resources towards specific objectives in a way that you may not be able to do on your own. Summary- retail logistics Summary- retail logistics There is usually the fear of losing control and accountability of your business as soon as you outsource. You can overcome this by finding that right partner; one who has the interests of your business at heart and goes about their job professionally. By finding this partner, you’ll be taking a major step towards effective management of your retail logistics costs.
- How Freight Forwarding Can Increase Efficiencies
The need for freight forwarding in the supply chain results from the complexities that often arise during the transportation of products, especially across borders. If you have goods to transport from point A to point B, a freight forwarder will find the best routes, specific couriers and even identify the most suitable mode of transport depending on your needs. They are knowledgeable and duly experienced at their work so will know how to handle technological, legal, social as well as political issues that may arise over the course of transportation. Basically the freight forwarder handles the following activities: Consolidating and distributing shipment Processing necessary documentation Selecting the most suiting means of transportation Selecting the best routes for transportation Acts as the intermediary in customs processes Assumes control of parcels Arranges for cargo insurance Facilitates payments of parties involved How freight forwards contribute to overall efficiency of the supply chain How freight forwards contribute to overall efficiency of the supply chain Automation of a number of activities Automation of a number of activities Most freight forwards now automate most of their activities which allows operational management to focus on value adding activities such as attending to customers, handling exceptions and working towards timely and accurate invoicing. All these will go towards reducing operational costs which increases profitability. For example, most freight forwarding service providers now deal with cost analysis at shipment level which allows sales persons to determine profit margins early on and make shrewd decisions. Clients are therefore able to maximize on shipment earnings. Since the processes are also less laborious, you can expect to grow the business at a much reduced cost. Quality customer service Quality customer service Since working with customers is actually part of their work, most freight forwarders have high quality customer service programs promising timely, reliable and accurate delivery of services. You want to be assured of safe delivery of your shipment and that is exactly what these forwarders strive to do. High end providers now offer single-view of every shipment which not only improves customer satisfaction but also enables better risk management and personalization of services. Cutting on costs Cutting on costs Shipment can be costly. What forwarders do is to cut out unnecessary processes or activities that add little to no value to the transportation process. They do this by streamlining processes and doing away with mundane, repetitive processes to maximize profit margins. For example, many forwards now inherit costing from client’s quotations leading to greater accuracy. Additionally, these forwarders do leverage on best trade practices and further maximize on productivity by obtaining a highly efficient workforce. Improved risk management Improved risk management The volatility of the logistics market, new regulatory guidelines and ever-changing client needs make it important for forwarding agents and customers in general to share concerns over risks in order to avoid being penalized or being put out of business. For instance, submitting inaccurate data can usually result in serious penalties. Great freight forwarders provide single points of data entry which makes it possible for information to smoothly flow throughout the supply chain without need for re-entry. Forwarders can also assess the risk exposure of each shipment and make necessary security arrangements in time. Summary- freight forwarding Summary- freight forwarding Freight forwarding has always fostered good relationships and collaboration between exporters, importers, carriers, agents, the forwarders themselves and customers. This is achieved through logistics community networks and exchange of information anytime, anywhere. When all the stakeholders are on the same page, you can only expect work to proceed faster and with great efficiency.
- What is Third Party Logistics Management?
Within many companies, managers often find themselves overwhelmed with various areas of their business to manage all at once. From employees, finances, marketing strategies, contracts, customer expectations and more, often times inventory and supply chain management gets pushed aside and left at the bottom of the list. As a result, inefficiencies are left unfixed, and supply chain issues and logistics management is simply not tended to in the way it should be. After a period of time, business owners and managers realize their need for logistics assistance. But typically, businesses are unsure of what exactly third party logistics management really is, what it entails, and how it can benefit the company’s bottom line. Throughout this blog post we will cover these common questions, and provide businesses with a better understanding of the overall benefits associated with third party logistics management. General Third Party Logistics Management Services General Third Party Logistics Management Services Generally, a third party logistics management company will take care of coordinating the shipment of goods from point A to point B. This could entail shipping products from the manufacturer to retailers, or even transporting various materials to production facilities for development. Essentially, a third party logistics management company will facilitate the development and delivery of your product from the very beginning stages of product development, all the way to moment your goods reach the market. Our third party logistics management services can do this by using various modes of transportation to transport all your goods, depending on budget, time constraints and overall efficiency. Generally, these forms of transportation include: Less Than Truck Load (LTL) Truck Load (TL) Rail Service International Air Ocean Freightliners Depending on distance, time constraints and budget, one or many of these transportation methods can be used to facilitate your logistics and supply needs. As well, a third party logistics management service will take care of all warehousing requirements that are unique to each specific client. We can arrange multiple warehousing locations across different regions, and arrange for storage that is specific to your particular goods. Specialty Third Party Logistics Management Services Specialty Third Party Logistics Management Services A third party logistics management service can also manage specialty items that require specific attention, and unique transportation and storage arrangements. This type of logistics management includes transportation solutions such as: Tankers Flat Bed Trailers Refrigerated and Temperature Sensitive Transportation Dangerous Goods Transportation Expedited Shipments & more! Our specialty warehousing options can facilitate cold storage for produce and perishable food items, medical supplies, chemicals and much more. Regardless of the goods or products that need to be warehoused, we will find the most suiting facility for your specific needs. Overall, a third party logistics management service is beneficial for any business, big or small, due to its specific attention to this critical aspect of your business. And because of the many years of experience and expertise in logistics and supply chain management in general, a professional service can develop and implement a far more effective logistics program than a traditional business manager. At 3PL we work alongside our clients to ensure that the most effective logistics plans are put into place that will optimize production, keep supply and inventory at desired levels, and essentially improve the bottom line through a well-managed logistics program. If you’re a business owner or manager looking to increase your company’s logistics efficiency, contact us or call today at 1-877-759-4287 to find out more about our extensive third party logistics management services!
- 8 Industries that can Benefit from Third Party Logistics Services
There are some industries in which the benefits of third party logistics services are quite obvious, and then there are those companies where the opportunities may not be quite so apparent. We've compiled a list of some of the obvious and some of the not-so-obvious industries that can benefit from third party logistics services. Home Improvement: There is a lot of money that exchanges hands where home improvement is concerned, and a third party logistics company can help you maintain a cost effective and efficient project while overseeing distribution, installation, debris removal and disposal, and other functions related to the home improvement process. Third party logistics services can help suppliers, homeowners, retailers, general contractors, installers, and everybody involved in the home improvement process stay efficient. Construction: Proper workflow is essential for any business, but in construction, this can mean the difference between breaking ground and breaking the bank. Our third party logistics services can help you find equipment and source raw materials, pool materials for delivery, and assist you with order management. Materials logistics can be a lot to keep track of, and a third party logistics company can help you stay focused on your projects at hand while ensuring that the materials travel safely and are stored in a secure place until they're ready to be used in the process. Food and Dairy: The food industry ranges from farm to table these days, and third party logistics can help you consolidate loads so your delivery is efficient. We work with regional temperature controlled distribution centers to ensure that your products make it from start to finish with optimal quality. Hi-Tech: Electronics, computers, and office equipment require their own special attention. Our third party logistics firm combines the ability to understand warehousing, re-packing, inbound, and outbound logistics to ensure that the entire life cycle of the product is overseen. Retail: Competition and the need for profitability are constant concerns in the retail industry. Our third party logistics firm can help you reduce inventory by consolidating your storage facilities. We are also skilled in working with break-bulk and cross-dock facilities. Forest Industry: This is a specialized field that requires skills that industry professionals understand. Our system gives you the visibility to account for the entire chain of logistics, from beginning to end. We can help you manage your bottom line by helping you better understand and pay attention to your production and logistical costs. Hotels: If taking care of people is what you do, then you already know how important it is to have the things in place that bring your operating supplies and equipment inventory management systems to their optimal potential. Furniture, fixtures, and equipment costs are easily conquered with our third party logistics system. Pharmaceuticals and Healthcare: Fewer industries have such a strict set of regulations! With standards that require such constant attention, your third party logistics team needs to have the experience to understand the needs of your industry. Pick-and-pack warehousing can help you keep control of your inventory and costs. We understand the importance of the medicines and equipment that are involved in your industry, and we offer temperature controlled logistics that enable you to keep control of your supply chain from product to market. If you're looking for a quality logistics company that works as a partner with you to ensure that your business needs are met and efficiency is optimized, we'd love to talk to you! Contact our team at 3PL Links today!
- Why You NEED Online Tracking & Visibility with 3PL 360
The ability to track your shipments puts you in control of your business. Since you are always updated on the status of the shipment, you can effectively make important business decisions in advance. The receiver is traditionally also updated on the status of the shipment so he or she can make special arrangements to receive the consignment as soon as it arrives. Shipment tracking is the surest way of knowing how safe the consignment is. Online shipment tracking is therefore a critical component of supply chain management. Most businesses invest in supply chain management for three main reasons; To minimize delays To enhance collaboration To reduce cost of operation Online shipment tracking contributes to this bottom line in 5 main ways: Online shipment tracking contributes to this bottom line in 5 main ways: 1. Using one Resource to Manage all Shipping Needs Popular as one-stop discount shipping, handling multiple shipping services in one place is a great way for business to cut on costs. By working with a single online shipment tracking provider, you also save on time that would have otherwise been spent moving from one provider to another. You’ll be given one number for all your shipping activities; a consolidated bill; and one shipping system. 2. Instant Comparison of Courier Rates from the Best Couriers Shipping being so sensitive has often forced business to spend a lot of time online trying to compare courier rates. They want to find out the best destinations and are also keen on any deals. Fortunately, most shipment trackers offer these services. This will save you valuable time in the shipment process. Furthermore, moving from one website to another, comparing rates is never a good idea because it exposes you to the malice that exists on the internet. 3. Tracking is Done in Real Time One of the major advantages of online shipment tracking is the real-time feature. You will be updated as frequently as you wish, of course at an increased cost. This is different from traditional shipment tracking systems where you are only updated when the consignment reaches selected points. This will help you on all levels of the planning process. You will even have enough data to analyze results beforehand. 4. Building Mutual Trust The integrity of the supply chain depends on supplier relationships. Can you trust your suppliers? Can they trust you? Through online shipment tracking you get to forge a thriving working relationship with the supplier. If your supplier is always updated on shipment status, and in real-time, it can only benefit your relationship. 5: Creation of Unique Passwords that can Only be Changed at the Customers Discretion Online shipment tracking offers very high levels of security. Customers are usually given auto-generated passwords, specific to their consignments, and which can only be altered if they wish so. Now, even if there were to be confusion, since every customer only has a password to his or her consignment, the risk of loss is greatly reduced. Summary - Online Shipment Tracking Summary - Online Shipment Tracking There are several other benefits of online shipment tracking services. In most cases, all you have to do is enter a container name and number to view the status of your shipment. Some systems will also require that you enter origin and destination of shipment before you can access the shipment status. If the goods are being transported by van, there will always be constant communication to ensure that the consignment is secure. And when you are certain that the shipment is safe on its way, you can concentrate on income generating aspects of the business.
- How to Reduce Logistics Costs
Logistics (and the costs therein) is a necessary part of the productivity of your business. However, you should not simply accept your company's logistics costs for what they are. You can greatly increase your bottom line by optimizing your company's logistics costs. The best way that you can accomplish this goal without sacrificing the efficiency of your logistics operations is to source the benefits of a third party logistics provider (3PL). What is a Third Party Logistic Provider? A 3PL is an entity whose team of logistics experts use their knowledge and logistics industry network to reduce the supply chain and logistics costs of their client companies. Working with a 3PL company allows an organization to divert its focus to other business activities while optimizing the costs and efficiency of their logistics operations. How Using the Services of a Third Party Logistics Provider Can Help You A 3PL has experience and knowledge with everything related to logistics, so they can give you the tools necessary to streamline every aspect of your logistical operations. For example, the top 3PL organizations know how to do the following: When a 3PL finds out where you can consolidate shipments, this not only reduces your logistics costs by cutting back on the number of shipments, but it also increases the overall expediency of your shipments. Many companies make the mistake of sticking with a shipping method (vehicle, plane, train or water), simply because it is what they have become familiar with. However, they all have their pros and cons. For example, air is the fastest long range shipment method, but it is also the most likely to be delayed by poor travel conditions and it also usually bears the highest cost; a train, on the other hand, is usually the least expensive way to ship (and the fastest via ground), but it is not as fast as air; for both of these options, products must still be shipped via vehicle to the final destination. Vehicle and water shipping solutions face a similar number of pros and cons. A 3PL can determine the best solution for each shipping situation that you face so that you will reap the best possible cost and efficiency outcomes One of the greatest wastes related to your logistics costs is the dedication of an exorbitant number of man hours to related tasks. When working with a 3PL, they will figure out where you can automate any logistics operations and help you implement the best solutions therein. This allows your company's team to dedicate man hours to critical elements of your business outside of logistics that need more attention. You will find that a great deal of waste can come from improper inventory decisions. Simply put, excess shippments increases inventory (or poor storage methods) increase your storage costs; and too little inventory will increase shipping costs. A 3PL can help reduce your logistics costs by analyzing your business's inventory needs and storage methods and upgrading how you handle your inventory. An important part of your logistics operations is having the equipment to get things done. However, owning this equipment will increase logistics costs. A 3PL already has this equipment, so you don't have to pay for it. To learn more about how to reduce your logistics costs, contact 3PL Links today!
- The Benefits of Vendor Audit and Payment Services
Auditing reassures organizations regarding financial controls. Audited accounts guarantee you that access to financial documents at the vendor’s desk are tightly controlled. Every company wants its customer data secured; you want to make sure that the vendor is complying with contractual obligations. The need for exhaustive auditing becomes even greater considering the ever evolving quality control market. In the current industry, quality products are no longer a luxury, they are a necessity. Vendor Audit Vendor Audit So Why would you Need Vendor Audit and Payment Services? Vendor audit and payment services are a critical component of ensuring the integrity of the supply chain, this has been the case for many years. But if you look around, you realize that supply chains are evolving, actually outpacing traditional audit program methods. To be effective, these programs need to reevaluate the processes, technologies and even the people involved. Medical Device suppliers in particular have always struggled with supplier controls. Indeed, one out every five manufacturers report shortages in this area. This has been a cause for concern for both manufacturers and the suppliers. If the supplier audit program can be improved, the supply chain integrity will be greatly enhanced which in turn helps companies improve their supplier controls. Quality of supplies and supplier relations will also improve. At the end of the day, companies can talk of reduced costs and risks. Recent statistics indicate that most companies are continually reporting an increasing global supply chain. Suppliers are no longer at your door step; they may as well be a world away. Auditing from such a distance is not easy. There is cost of travel, cultural differences and language barriers to contend with… hiccups but which have an impact on the results of the audit and even the success of follow-up. You can definitely eliminate these problems if you make use of vendor audit and payment services. You are quite aware of the need to control supplier numbers. If your suppliers are handful, that doesn’t become a problem. However, as already mentioned, the supplier base is growing. This comes with changes in locations and addresses. If you are handling a few thousand suppliers, the challenge becomes enormous. In some cases companies can’t even quote a fair estimate of their suppliers. A chunk of the audit team’s time is therefore wasted on finding out which suppliers are still active in the supply chain. Having vendor audits and supplier services done for you will allow you to divert these resources to income generating areas of the business. The risk posed by a more diverse supply chain is evident. Companies are struggling to cope. Many have tried to increase the number or frequency of audits performed every year and it just doesn’t add up. Even if you increase the duration of the audits with the scope of audit function remaining unchanged, the natural growth and the rate of diversification of the supplier base will easily outpace the resources and structures of most traditional supplier audit programs. To stay on the safe side, you need to work with a reliable vendor audit and payment services provider. Summary - Vendor Audit Summary - Vendor Audit Companies are realizing the importance of vendor audit and payment services. With such services, you get to avoid several possible mistakes such as duplicate billing, overcharges and unwarranted accessorial charges. Every business exists to make a profit. Having the peace of mind and time to work on more important matters knowing well that your vendor audit and payment services are in safe hands can only enhance your bottom line.
- Special Considerations for Shipping from Canada to Mexico
There are many factors that have driven and continue to drive companies to source operations to Mexico. This increase in trading operations involves an increase in shipping from Canada to Mexico. While the process itself is not as challenging as you may think, there are several key factors to be considered for successful cross-border shipping to Mexico : Contingency Plans - It is important to understand that trading in Mexico might be influenced by social, economic, as well as environmental issues, including natural disasters. As a result, it is important that you work with a shipping company that has the ability to create multiple emergency plans so that you can conquer all unfortunate events that may interfere with your shipping from Canada to Mexico. Visibility Tools - It is also vital that you seek a provider that features a transparent transportation service so you don’t lose track of your shipment. Losing track of freight at the border is a common risk that results from too many hand-offs and parties involved in the shipping process. You can integrate where possible so that you limit the number of hand-offs and streamline freight location and accountability issues. Customs Broker - The customs broker plays an essential role when shipping from Canada to Mexico. It is crucial that you understand the implications of any mistakes that can occur in importing merchandise, as well as other shipping and import-related issues. A long-term, stable, and strong relationship with your customs broker can spare you a lot of time and money. Diversified Carrier Base - It may not be wise to rely solely on a single carrier asset to satisfy your shipping needs to Mexico. Equipment availability throughout the year is essential if you want your business to grow. The solution is a diversified carrier base, which allows you to take the edge off this issue and benefit from additional equipment. Avoid LTL - LTL shipments have a different regimen in Mexico. Not only are they more expensive because they are regionalized in Mexico, but shipping from Canada to Mexico may involve longer transits. That happens because LTL shipments cross the border separately. So it is advisable that you avoid longer transit times and expensive shipments by avoiding LTL altogether. Insurance - One other thing that is different is carrier insurance. Unlike other countries, carrier insurance is not automatically incorporated in transportation rates. The carrier liability would basically mean nothing and collecting on the liability is not a common occurrence. The cheapest way is to buy insurance though your global policy and therefore have the coverage you need in Mexico.
- Challenges in Global Supply Chain Management
There is no doubt that the world of supply chain management is becoming increasingly complex. Supply chain executives have revealed five global supply chain management challenges that will define this industry over the next few years. Reports say that the ability to manage these five challenges successfully will eventually determine the success or mediocrity of a business. Here are some expected challenges in Global Supply Chain Management: 1. Improved Customer Access and Accuracy of Supply Chain Planning - In order to achieve improved customer access and accuracy of supply chain planning, companies require improved point of sale and partnering concepts, real time demand and supply planning, end-to-end supply cooperation and optimization and reduction of supply chain response time. This challenge arises because of increased supply chain volatility and uncertainty resulting from market transparency, greater price sensitivity, reduced customer loyalty and product commoditization 2. Enhanced Supply Chain Plasticity across the Entire Process - Global supply chain management organizations must concentrate their efforts on boosting the flexibility of their upstream and downstream supply chain through adjustments of the overall network design and improvements to their supply chain flexibility. In addition, management of the process and product complexity is necessary to complement late-stage customizations. Securing growth requires global suppliers and customer networks, as well as customized products, which is why the complexity and globalization of supply chains needs to be managed effectively. 3. Engineering Total Cost of Supply Chain - Global supply chain management operators can surpass this third challenge by outsourcing non-core functions, implementing regionally- configured supply chains, optimizing total supply chain costs and processes and low-cost country utilization. This challenge comes up because customer requirements and competition entail tailored supply chains and product offerings at a regional level. Subsequently, optimizing end-to-end supply chain cost is critical. 4. Implement end-to-end Supply Chain Risk Management - It is one of the greatest challenges for global supply chain organizations but it can be conquered as well with adequate strategies. This is where companies must optimize demand and supply risk, manage supplier risk, and optimize working capital and asset, as well as key partner supply chain risks. The point is that risk and opportunity management should span the entire supply chain, from demand planning to expansion of manufacturing capacity and should also include the supply chains of key partners. 5. Integration of Supply Chain Organization - In order to integrate and empower supply chain organizations, you need to perform integration across all functions not just particular functions. In addition, the ability to deploy the right skill sets and expertise is just as important as empowered decision making with clarity, when it comes to global versus local responsibilities and functional decisions. Global supply chain organizations should be perceived and treated as a single integrated organization. Effectiveness and improved outcomes result from supporting all functions of the supply chain.
- How to Adopt an Eco-Friendly Supply Chain Strategy
Today"s businesses are under increasing pressure to go green. One way you can contribute to a greener environment is by adopting an eco-friendly supply chain strategy. Since supply chain management is such an important part of business and is also directly concerned with people and physical goods (raw materials and finished products), any step you take will have profound impact on your work environment and on the way people will perceive the image of your company. Here are some tips for making your supply chain more "green": Switch to Green Equipment: A variety of equipment types are used in different of stages of the supply chain. For example, trucks and ships are used to transport goods, and air conditioners are used in storage facilities. Many of these types of equipment make harmful emissions and pollute the atmosphere. In order to make you supply chain eco-friendly, start by switching to greener equipment wherever possible. For example, you could choose to use electrical equipment instead of those that run on gas or petrol. Calibrate Existing Equipment: If replacing all your old equipment is costly, then calibrate them to work more efficiently so that they will consume less fuel and release less pollutants in the environment. Although this solution may not completely eliminate emission, it does make a significant reduction, which is a step forward. Partner with "Green" Suppliers: In the last two or three decades, a large number of companies have gone green either out of choice or compulsion. Many of these companies have a made a name for themselves as green suppliers and are trusted by their customers industries, who in turn are trusted by consumers. As a part of your supply chain strategy, seek out these suppliers and partner with them. Make sure that you get your supplies from them as far as practicable. Recycle Raw Materials: Recycling is the key to an eco-friendly lifestyle. It minimizes wastage and prevents pollution at the source. Make it a company policy to reuse all waste products (where possible), and reclaim as many of your products as possible at the end of their lifecycle. Besides helping keep the environment clean, recycling also provides a cheaper source of raw materials for your company. Proper Waste Management: Waste products are unavoidable, but you can help create a greener company and a better world for everyone to live in by managing your wastes in an eco-friendly way. Separate all recyclable from the non-recyclable wastes. Reuse the recyclable products to create new products. Destroy the non-recyclable wastes without polluting the environment. Waste management is an important part of going green. Use Renewable Energy: Much of today"s manufacturing still relies on fossil fuels or energy produced using fossil fuels. Even non-manufacturing industries use vehicles and equipment that are driven by fossil fuel. This is doing unimaginable harm to the eco-system. So make the use of renewable energy the focus of your supply chain strategy. Wherever possible, use energy generated by clean and renewable sources such as solar power, wind power and thermal energy.
- Transportation and Logistics Considerations for the Food Industry
The food and dairy industry depends on the smooth and timely supply of raw materials. Since the ingredients required by food industries come from many different geographical locations, sometimes halfway around the world, transportation and logistics play an important role in ensuring the success of the industry. Because of the short term nature of raw materials and finished products, the food and dairy industry faces many unique challenges that are not found in any other industries. Speedy Delivery to Avoid Deterioration : Many of the raw materials go bad quickly. For example, vegetables like tomatoes and cucumber and fruits like bananas and grapes do not last long even if stored in climate controlled facilities. Therefore, they need to be delivered quickly. The same applies to finished products. Most processed foods have an expiry date after which they cannot be consumed. Especially susceptible to rotting and putrefaction are foods like pizza, bread and milk products that can go bad within a few days. Preservation of Quality : Of all the industries, food and dairy industry is one that can never compromise on quality because when a product is substandard, no one needs to be told by an expert that it is substandard. While the quality of the food depends upon the manufacturer/producer, logistics has an equally important role in preserving that quality. Foods and dairy products need to be stored in certain climactic conditions when transporting and can quickly deteriorate in quality if those standards are not met. Risk of Contamination : Since foods are a magnet for all like of life forms, including bacteria and fungi, they can be quickly become contaminated. Since food contamination is a serious health hazard that can even lead death of the consumer, ensuring high standards of hygiene and cleanliness is one of the chief transportation and logistics consideration of the food industry. Businesses must follows best safety practices and hire staff trained in food safety. Without such a consideration, the industry can quickly lose customers and go out of business. Risk of Breakages and Damages : Because of their soft and delicate nature, food and dairy products have a high risk of breakages and damages during transportation. For example, eggs and ice-cream cones can break on slight impact, making them completely useless. Breakages and damages during transportation results in huge losses to food industries every year. Therefore, special care must be given during packaging, loading, unloading and transporting to ensure that no damages and breakages occur. Climate Controlled Facilities : Since both raw and prepared foods can go bad quickly in the outdoor environment, they need to be stored in climate controlled facilities before, during and after transportation. In order to preserve freshness, avoid contamination and maintain quality, each food product must be stored at an optimum temperature. Most foods do quite well from 34 o - 40 o F (1.11 o C - 4.44 o C), but deteriorate rapidly above 40 o F (4.44 o C). Ensuring proper climate controlled facilities is an integral part of transportation and logistics consideration of the food and dairy industry.












