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Happy New Year 2018!

All about Supply Chain Management


Containers are the primary mode of transportation for maritime import and export flows, with 75% of total cargo carried by containers in developed areas of a global shipping network. Containerization allows for efficient distribution processes, and transshipment activities, such as warehousing, are integrated with production, distribution, and competitive supply chain strategies. Global Production Networks (GPNs) have become essential for manufacturers to consider global logistic strategies, governance, transportation, and value-added services. Liner services, such as Maersk Line and MSC, can integrate trade routes, but schedule integrity often compromised because of port terminal congestion. Re-positioning issues of empty containers are a complex issue related to global freight distribution, influenced by trade imbalance, container manufacturing costs, leasing costs, and usage preferences. Port hinterland relations are crucial for port development, as they enable access to cargo bases and create regional load center networks and logistic poles. Environmental constraints and local opposition to port development also play a role in box logistics, containerization, ports In A global shipping network development.

To run a production system as a whole and to promote improvement kanban is used as tool. The Kanban system was implemented in 1953 in Toyota Company manufacturing process. Those signals are tracked by replenishment cycle, so that suppliers and buyers notice it. They observed that they can view a process as being a customer and proceeding process as a store. Signboards were used to give expression of shipping at the store. Kanban is part of a system where “Pull” comes from the demand. According to Taiichi Ohno , must follow strict rules to be effective, also need close monitoring of products ,so that products with defect should not be sent to subsequent process, produce exact quantity; the process should be tuned finely and rationally.

Carrying out thorough third party audit not only provides the necessary regulations, but it also helps mitigate against reputational financial risk and data related damage. It is required to be careful about various governmental embargo situation: Third party suppliers, logistic service providers should prevent themselves from buying from or selling to anyone on the relevant restricted company lists maintained by various governments, such as Australia, Canada, the UK and the US. On the other hand, this is a strategy which results in higher supply chain profit than a price of the whole duration of sales season. To increase the profit margin Supply Chain Managers must use all the levers available, including price. Third type of approach he can adopt is at high demand season, he can take lower price, and low demand season, he can take a higher price.
