Build value in supply chain and logistics to support the company’s growth and strength. Focus on competitiveness and integrated efficiency.
The Master Plan aims to improve both the activities of the existing processes or new projects. It involves resources, investments and deadlines, and it has a defined period. Its goals are oriented towards new processes, costs reduction, improved services, materials and information flow optimization, as well as procedures of excellence for all the activities regarding logistics.
Outsourcing Logistics Plan for total or partial outsourcing of logistics processes and activities, taking into account activity, market and business strength, has both advantages and disadvantages. It aims to determine when and how to outsource in order to reduce risks and promote large-scale gains, growth acceleration and service improvement.
Structuring budget and financial value helps managers understand value measurement connected to operations improvements and reduction. The results are: development of supply chain financial tools that offer financial vision and a value-added model.
Logistics operations must be business strategy oriented and aligned with other areas of the company, such as sales and marketing. This will ensure the logistics process is a strength and not a bottleneck. Results are obtained by budget adequacy and the company’s expectations to provide the best within conditions and limitations of the business.
Measuring supply chain performance is challenging as indicators are specific and restricted to linear visions. Developing indicators aims to understand activities in a comprehensive and interconnected way through detailed analyses. It also offers measures that guarantee coherence of integrated management as well as sufficient detailing for the management of parties.
Help recruit logistics operators taking into account needs, resources, service level and guarrantees, among other details that might be overlooked during selection process and contract drafting. Thus, it offers better results in the outsourcing hiring process and job execution.
Although transport, materials movement and warehousing are different processes, they are interconnected and directly responsible for sales effectiveness and marketing strategies. Their Strategic Plan aligns all these activities with the purpose of generating the best result possible for the business, considering investment plans, technology, operational and logistics models as well as physical infrastructures.
Aligning and integrating the Supply Chain flow and processes with excellent customer service through lower operational costs, more agility, flexibility and fast response to market.
Plan for demand and its impact on the supply chain inventory, define productive priorities, establish best models of purchasing replenishment, align supplier’s operations to secure seazonal sales, distribute quality information for management of different internal processes from an in-depth and structured analysis of business.
Develop an Action Plan with the Supply Chain integration projects from demand management, inventory, production models, decision-making support tools, organizational structure, to indicators and technology.
Vendor Management Inventory is a technique that allows for inventory management in distribution systems guaranteeing adequate stocks to meet the demand, increase sales, continuous flow of materials, capital and spaces costs reduction, better customer service and fast response time to market movements.
Buiding performance indicators for supply chain takes into account the priorities of business, alignment of processes for performance gain, convergence of objectives between the different areas of activities and logistics network visibility.
How to build a group of business executives with collaborative teams aware of the impact their decisions will have on the supply chain, business outcomes and customer service? How to align area objectives around business strategy and best practices in the Supply Chain?
Transportation carriers are responsible for the transfer of goods across the various manufacturing stages to the final customer. It is highly vulnerable to external interference, therefore, use of different modes and proper technology is vital for efficient management.
Specifying technology and systems to be incorporated into vehicles and central management allows for better choices and return on investment in transport operations management. The result is a systems specifications guide for choosing the right technology for operations, with best return on investment.
Developing models for transportation provider selection takes into account structural, physical and logic factors to support the selection process, with quality agreements and contingencies for each operation. These models reduce direct costs (freights) and operations (contingencies).
Implementation of freight audit procedures enable managers to assess recruitment quality, with the purpose of analyzing standard deviations, identifying opportunities to improve recruitment models for freight cost optimization. Procedures involve capacitation of internal auditing professionals in freight assessment costs.
Opportunity development for various modes of transport is based on updated analyses of market choices, possible investments that facilitate process, and the conditions of product and service available. The result is detailed analysis of the actual possibilities of transformation with investment, costs, service levels and economic benefit perspectives.
New approaches are necessary to meet the material flow requirements in the planned order. Implementation of specialized transport systems adds value to supply chain logistics through procedures that ensure the expected efficiency in subsequent fulfillment processes. Implemented systems reduce stocks and enhance operations productivity.
LTL (Less than truck load) optimization project seeks to identify transport opportunities that enable cost reductions and better service levels, taking into account high participation in final pricing. Different operation models with feasibility and investment analyses are presented.
Developing a project for transportation reverse logistics involves assessing several alternatives for costs, investments and operation values, either in house or outsourced. The result is a detailed project with objective analyses of the alternatives selected, aiming to explore opportunities of sustainability and responsibility obtained by returning products’ packages and glass containers.
Developing performance indicators for transportation creates the necessary logistics management conditions to manage operational effectiveness, taking into account deadlines, routes, volumes, costs and restrictions, whether in house or outsourced fleet. The benefit generated includes the possibility to assess new projects and improve transport selection models to provide higher operational efficiency.
Procurement, purchasing and suppliers are part of business sustaining activities. Planning efficient purchasing, identifying and certifying suppliers, establishing business compliance criteria, and assessment indicators are relevant activities with a direct reflection on the business.
Materials planning must follow a thorough and optimized work process ensuring economic results without losses due to inneficiency. Implementing supply planning models involves all the organization: sales forecast (demand), production capacity and sourcing relationship with partners. The benefits are: reduced downtime, stock reduction, higher efficiency in meeting demand, increase in machinery productivity and human resources, and increased customer satisfaction.
One of the main causes of production inneficiency is lack of raw material or excess of capital in stocks. Developing collaborative models with suppliers establishes procedures, signals and indicators for continuous replenishment of raw material, production continuity, reduction in invested working capital turnover, and regulation of financial flows.
Savings opportunities analysis in purchases provides a new pattern of processes and mapping for selecting, certifying and recruiting new suppliers. Several opportunities of costs reduction, risks, direct and indirect impacts on business are assessed through different scenarios and matrices, enabling better practices and results for customers.
Training and capacity building for operations planning, action and assessment, with comprehensive and integrated vision of the supply chain. Leadership and teams will improve their decision-making assessment capacity, and include internal and external partners in dicussions and projects.
Operational Planning is a coordination and syncronization activity. Its objective is to fulfill order demands for products and services guaranteeing best performance in production and flow of materials. Planning activities comprise inventory management, planning raw-material purchasing, planning and sequencing production, defining human and capital resources. These responsibilities can be carried out through deployment of several techniques available. However, business particularities require adjustments for complete adherence to any technique.
Production planning uses scheduling techniques to allocate machinery resources and plan human resources due to complex variables: different stages, inventory, raw-materials, final product, shifts, process time, among others. Implementing these modern techniques enables faster decision-making, opportunity visibility for meeting customer demand, reduction in delivery delays, improved production performance, reduction in inventory shortage and downtime due to stock-out.
Sales and Operations Planning takes into account the areas responsible for processing customer’s order. This model is based on the professionals capacity building for performing within wider scopes of work using statictical analysis tools. Integration of collaborative and engaged teams with different perspectives improves the understanding of options for best decision-making at each stage.
Develop planning teams allows for carefully chosen professionals to be trained to manage activities in a dynamics and open minded way with vision capacity to predict scenarios. Several techniques are considered along with their practical approach to business.
Stocks of finished products, raw-material and goods in process represent the capital invested to purchase items – the higher the capital, the higher the cost to produce them. Inventory management is vital to control the capital invested to make business feasible. Building models for inventory replenishment planning and control creates the right conditions for analysis and visibility of the actual needs at each stage in time, avoiding overstocks and raw-material shortages. The results are: improved cashflow, reduced working capital and losses, and increased productivity.
Demand forecasting capacity and resource planning facilitate purchase decision-making, stock building and order fulfillment process. Purchase forecast and demand planning structuring enables scheduling machines and resources. It also allows for proper purchase of raw-material for consumption. The benefits are: cost reduction, better customer service, lower working capital.
The order cycle begins the moment sales department confirms the order and its delivery date; it is concluded when goods are delivered in their full physical integrity and completeness. The order cycle analysis and optimization enables identification of the possibilities to better meet the demand, reducing cycle lead time or increasing time delivery reliability. The benefits are lead time reduction and stability in demand management processes.
Each stage of production has different lead times. This difference is mitigated by use of human resources and different conditions. Balancing and synchronization models use analysis constraints to balance and synchronize the stages of production to enable semi finished stocks balancing and reduction in movement variations. The result is productivity gain, improvement in quality performance in manufacturing and better demand satisfaction.
Optimization is based on developing mathematical models that translate reality into formulations, obeying the same rules and characteristics of real world processes. In this way, optimal conditions for cost minimization and profit maximization can be sought through alternatives scenarios. Due to great number of variables to be considered, modern computer systems are necessary to attain consistent and optimum results.
Reviewing logistics network aims at better or optimal utilization of resources (fleet, freight, cargo, capacity, infrastructure) and quality of services provided (delivery date, order fulfillment). The result is costs reduction, improved logistics service, balancing of flows and capacities.
Logistics network is comprised of manufacturing and warehousing unities, transportation, suppliers and cross-docking operations. These unities make up product distribution baseline through which customers receive their orders. Logistics network optimization involves the creation of mathematical models that translate flows, capacities and operation costs reality into equations. These equations and optimization process deliver more economical (costs) and/or faster (service) alternatives. The results are cost reductions obtained through lower freight costs, the opening or closing of manufacturing and warehousing facilities, supplier selection, balancing of flow and balancing capacity, and higher quality logistics service.
Logistics clusters are virtual regions geografically segmented. They are defined through established criteria and according to demand (flee size, number of customers, sales region, routes, etc). Compatibility of logistics clusters with sales regions syncronizes service processes to customer according to the sales model applied. This synchronization establishes the best service conditions as well as significant reductions in transportation costs.
Distribution Routing is about buiding optimized routes according to established cost criteria, deadline, clients’ constraints, sales regions. The implementation of these systems begins with market products adherence analysis, customer’s team implementation and preparation for continued use. The results are cost reduction in freight and higher delivery quality.
Investments in new plants or renovation of existing ones may require huge capital. Before executing these jobs, it is possible to verify if there are bottlenecks in points of movement or queuing formation in production, identify where expansion will be necessary, test demand increase ou seazonality scenarios. Simulation is based on advanced statistical analysis and specialized systems.
In several manufacturing processes, especially in decomposition processes (wood, bio oil, living), the same raw-material can be used to produce several end products. Dynamic systems use mathematical models to distribute raw-material into several finished products optimally. The gains are stock reduction, lower unwanted by-products in the processes, meeting the demand for production, and cashflow increase.
Materials movement and warehousing are operational activities that enable conservation, organization and transference of finished products or raw materials, from manufacturer to recipient. These operations can be simple or very complex, adding important value to business. Technology, processes, physical, logical and human structures are their core areas and should be carefully considered in supply chain management.
Layout for new or existing warehouse, taking into account all the characteristics regarding products, service levels, investment, etc.. It also includes analysis of material movements processes to guarantee quality and agility. The most effective layout and operation process design are delivered.
Picking process (order picking) performed via internal transport (forklift/conveyor belts) and vehicle loading set the pace and the logistics flow capacity. Therefore, to balance and adjust this system to the expected service model is vital and involves team capacitation, process enhancement, and investments in technology. The results are: improvements in customer service, cost reduction and improved operational control.
Cargo capacity unitization systems aim to group products in specific containers to reduce accidents, help movement and loading. They are space-saving and ensure more simple order formatting. The benefits are: package effectiveness for best combinations, and unitisation systems reducing waste and costs.
Inventory management controls stock positions, inventory movement and goods availability. Its structure is based on the folowing tripod: inventory, movement and human resources. The benefits are: agility, internal movement reduction, better organization, reliance and operational efficiency.
Implementing warehouse and inventory indicators enables managers to follow-up on the evolution of the main activities executed and the variations caused by decision-making and external forces. Preparing and implementing these indicators provide better space utilization and equipment management for availability of goods at the right time and quantity.
Warehousing and movement design and simulation systems help identify model efficacy, flow and velocity limitations in order to make fine adjustments in layout and equipment projects. Simulation provides logic tests and alternative views. It also helps reduce risks and future problems through physical deployment of automated warehousing.
Construction or renovation of warehouse requires technical analysis, taking into account structure capacity, equipment loading, construction technology and verticality optimization. Technical specifications allow for best operational conditions aligned with purpose of physical structure use.
Keeping up with technology trends in order to improve movement process and warehousing management, aligned with long-term benefits investment returns is essential for business existence and competitiveness. Specifications present options for higher adherence to logistics operation as well as higher chances of success and expected return.
Omnichannel is an approach to sales whereby customers may receive their orders through several potential channels. In e-commerce for example, upon requesting a product, the customer can receive it through the closest physical store, directly from local distribution center, distribution network, shopping mall kiosk or through a third party distributor. What is more important is that customers can choose how and when to pick their products.
Customers are increasingly demanding services through physical channels and the Web. Retailers are still struggling with physical and digital buying and selling. Permanently assessing the supply chain management capacity to deliver products when, where and how customers want is a challenge for most retailers. The physical points of sales are not obsolete and they have an important role in Omnichannel as a web point of service, for example.
Forecasting future demand accurately requires fine tuned technical and management skills. It enables sharing information between different departments: marketing, sales, logistics and purchasing in order to actively participate in the market by ofering the right products through different channels, at the right time and the right quantities. Quick assessment of information in supply chain allows for decision-making agility to replenish stocks and meet customers’ demand.
Meeting the demand across the different omnichannel channels requires full visibility of what is in stock, where it is and how to move from point A to point B quickly and efficiently. Fine tuned inventory control is not only useful to meet the demand but it is also important for scheduling supply or production. Technologies connecting different areas of business as well as partners are essencial to support omnichannel service fullfilment strategies.
Traditional warehousing, picking and expedition operations are not ready to fulfill orders at the speed and with the quality required by omnichannel customers. Investing in new technologies and new processes is essential to support the characteristics of omnichannel. Besides warehouse inventory, omnichannel must expand service fulfillment possibilities by including stocks from stores and other physical points. In order to decide how to serve customers and where from, specific service and cost optimization systems are essential tools for the retailer.
