Opinion Supply Chain
system over the web. This removes the need profitability. Such an integrated approach will customer location and distribution channel –
for them to invest in an expensive ERP system also, critically, enable companies to minimise to determine which products to sell; which
and makes it easier for them to comply with inventory levels to meet a given service level ones should go directly to customers and
your requirements. and free up much needed capital. which ones should be sent to a distribution
centre; what customers you should focus
Plan for the unexpected Make ‘Green’ more than a attention on as they are maybe the most loyal
The doomsters tell us there’s much worse to PR campaign or are the biggest spenders; which channels
come. The optimists tell us we’ll see an upturn The supply chain is the next big frontier in the you should direct future investment towards;
in the second half of this year. Supply chain greening of the corporate world, and it goes what is driving up inventory costs and how
executives should expect continuing change – well beyond efficient fuel consumption or efficient your distribution centres are. A Total
and more of it. Companies need to be better eliminating ‘empty miles’. The concept of Cost to Serve solution enables better
equipped to handle the ebb and flow of creating a green supply chain has begun to sourcing, routing and fulfilment decisions by
demand, allocation of inventory, and the move from being a public relations initiative to capturing actual costs as they happen. It
proliferation of multiple sales channels. a vital means of doing business – one that allows you to break these costs down by
Probably the biggest change of all we will see brings real economic value. Many companies direct or indirect cost component, so you can
in the next few years and that will affect every have started working out their full carbon track supplier cost, shipping cost, inventory
future supply chain is how goods are bought footprint and are assessing, or in some cases carrying cost, warehouse labour costs and
and sold. As cost-conscious consumers, in deploying, models that support responsible customer-defined costs such as import duties,
increasing numbers, browse for goods on the distribution. security inspection charges and port fees. circlesolid
Manhattan Associates
at a glance
Manhattan Associates, Inc.
announced record total revenue for
the Europe, Middle East and Africa
(EMEA) region for 2008. The result
was revealed as part of the company’s
fourth quarter 2008 financial results,
announced on 10 February 2009.
Total EMEA revenue for 2008 was
a record $42.8 million, representing
a 16 per cent increase over 2007.
This was achieved despite the
Allen Scott: Focus on which
challenging economic climate that
products, customer groups
presented itself during the course of
or distribution channels are
truly profitable to you.
the year. In addition, services revenue
Failure to do this can lead to
for the EMEA region in 2008 totalled
huge inefficiency at best and
$32.2 million and was up 26 per cent
business collapse at worst.
As companies focus on supply chain and
from 2007; representing the region’s
product lifecycle management solutions in a
highest full year services revenue
more environmental light, concepts that will
performance ever. Manhattan
high street but choose to buy online at lower move to the forefront include designing
Associates’ supply chain solutions
prices, what does this mean for the high street products derived from recycled materials;
include: Manhattan Scope, a portfolio
shop? Only those outlets offering an unrivalled striving for ‘zero waste’ from a product at end-
of software solutions and technology
service experience will survive and thrive. of-life; and employing sourcing and fulfilment
that leverages a Supply Chain
strategies based on more efficient logistics
Process Platform to help organisations
The watchword for 2009 and beyond is agility management (ie., minimising product touch
optimise their supply chains from
and supply chain strategies will need to be points, fuel consumption, etc.).
planning through execution; Manhattan
built around integrated Flow Management
ILS, a portfolio of distribution
systems that enable companies to change Know where you make money management and transportation
dynamically with market conditions, evolving Focus on which products, customer groups or management solutions built on
buying patterns, and possible further local or distribution channels are truly profitable to Microsoft.NET technology; and
global economic shocks. By integrating you. Failure to do this can lead to huge Manhattan Carrier, a suite of
demand, supply and inventory strategies, inefficiency at best and business collapse at supply chain solutions specifically
companies can ensure that products are worst. This is all the more important given the addressing the needs of the motor
delivered to the right place, at the right time – present set of economic circumstances. You carrier industry.
optimising customer service and improving need to know all your costs – by product,
www.logisticsit.com
MANUFACTURING
March 2009 &LOGISTICSIT
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