Knowledge Logistics IT All systems ‘go’!
Andrea Harris, a consultant at leading logistics consultancy Davies & Robson, offers a practical overview of technology in both strategic and tactical supply chain planning and execution.
At a strategic level, technology can be used to determine the optimum network design, what stock should be held, in what quantity and where, and how warehous- ing and transport operations should be confi gured for maximum effi ciency.
SOFTWARE SOLUTIONS
ensure that your logistics function, supply chain tools and methodologies are performing to cur- rent best practice, adding value, building rev- enue and cutting costs for your organisation? Developments in technology, combining the sound operational principles of supply chain logistics and lean and agile thinking, have been adopted by logistics professionals to assist in all aspects of supply chain manage- ment, from the start-up of new operations or regional and global expansion, to the day to day management of inventory and fl eet. Technology assists with planning, at both a strategic and tactical level, effec- tively allowing organisations to provide the best possible service at the least cost.
W 30%
reduction in vehicle fleet by an offi ce supplies company aſt er consultation with Davies & Robson
32 June 2012 Storage Handling Distribution
ith the supply chain at the very heart of today’s chal- lenging business environ- ment, how best can you
Intelligent modelling software such as CAST considers all aspects of the sup- ply chain in order to aid decision-making in terms of centre-of-gravity analysis, warehouse options and confi gurations, transport mode options, time to market, lead time analysis, cost modeling, and even carbon emissions calculations. This is especially important in global supply chains and, in Davies & Robson’s experience, it is usually best to pull stock from a location as close to the source as possible, using consolidation services if necessary to allow for smaller batch sizes and more frequent deliveries. Other strategic planning applications include the use of routing and scheduling
by almost 30% through multi-tripping and double-shifting vehicles between two hubs. In operational terms, IT solutions have assisted logistics to become more lean and agile, primarily as a result of im- proved visibility of information.
FULL VISIBILITY
Connected information throughout the sup- ply chain offers full visibility to stakeholders that, in turn, can prevent the panic reaction to hold higher than necessary safety stock levels and promote Just In Time (JIT) opera- tions. The grocery and automotive supply chains are prime examples of this, as the manufacturers and distributors often have visibility of the stock consumption at the customer interface and are free to assess risk and plan manufacturing and stock holding as appropriate, rather than waiting for instruction from a desperate retailer seeking stock as a matter of urgency. In short, the more time you have to plan the better you are at it! From sophisticated ERP systems with
“In operational terms, IT solutions have assisted logis- tics to become more lean and agile, primarily as a result of improved visibility of information”
software to design optimal transport opera- tions and the use of simulation software to aid warehouse design and confi gura- tion and the specifi cation of MHE. Strategic planning can typically return savings of 10% and often signifi cantly more. For example, a recent Davies & Robson project for a consumer electronics fi rm identifi ed cost to market savings of 18% (£3m) by switching the mode of transport and relocating the bulk storage facilities, whilst a project for an offi ce supplies retailer allowed the vehicle fl eet to be reduced
www.shdlogistics.com
add-ons for managing every aspect of the supply chain to best-in-breed warehouse and transportation management systems, there is a veritable plethora of solutions for organisa- tions of all shapes and sizes – the key is to fi nd the one(s) that works for your business. However, in all cases, supply chain planning and execution systems are only as good as the data on which they rely... a few minor errors can majorly skew the output.
www.daviesrobson.co.uk
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