Category: Supply Chain Management

Revenue in a supply chain: Financial Risk from the third party

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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.

A Lean Logistic Control System : Kanban

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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.

Drop shipping: a supply chain distribution network option

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In drop-sip model, product is shipped directly from manufacturer end bypassing a retailer. Benefits of aggregation can be achieved, if the manufacturer can keep some of its inventory at the retailer end on and as needed basis. In addition, drop-shipping offers manufacturer an opportunity to postpone customization until the customer has placed order finally. Response times tend to be long, because the order has to be transmitted from retailer to the manufacturer and shipping distance are generally longer from the manufacturer’s centralizing site. Order visibility is very important in the context of manufacturer storage, because two stages in the supply chain are involved in every customer order. But a manufacturer storage network is likely to have difficulty handling returns, so that customer satisfaction may be hurt. Because, each order may involve more than one manufacturer.
Keywords: drop-shipping.

5 Reason your Enterprise Need Supply Chain Integration

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Supply Chain Integration help in reducing product delays by improving the efficiency of the supply chains. The product delays are largely a by-product of mismatch in information and dis-coordination between the delivery, warehousing, and trading partners. This brings visibility to all parts of the supply chain and helps in giving adequate information about each step that ensures compliance, adherence to the safety standards and product quality. This helps in making supply chain agile and scale-able and gives confidence to the stakeholders to make sure the best practices are implemented at all the level of supply chain operations.

10 Things You Need to Know About International Freight Forwarders

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Some data freight forwarders need from you include full shipping and destination addresses, contact details of receiver, weight of cargo, a list of the items included, dimensional weight, and product description. If your items need extra care, then it’s best to hire a forwarder that specializes in handling such goods. The process begins from transferring the goods to the forwarder’s warehouse to leaving the origin country, unloading and validating the cargo, checking of paperwork, transferring the cargo to its destination office, and transferring it to its final destination. Their professional staff can help with packing your items and storing them, doing inventory management, declaring your items at customs, providing insurance, troubleshooting, and handling documentation .Some of the most common restricted items are alcohol, batteries, biological waste, dangerous goods such as a flammable liquid or toxic objects, prescription or recreational drugs, perishable items, sharp objects, and weapons. If you’re into business and you want to expand your customer reach, then you might want to consider looking into the most reputable international freight forwarders in your area. They will handle your goods with utmost care and your customers will be able to receive them in good condition without hassle. These companies either ship goods through road freight, ocean freight, or air freight.