Drake Says:
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Challenge
yourself to think about
the data your organization
could be sharing with
its partners and the types
of data you wish you were
getting on a more timely
basis from your partners.
What
do you say? Send
us your comments here
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As
logistics pros, we generally
agree that collaboration is
easier to talk about than to
achieve. To keep it from being
an unreachable ideal, we can
take a closer look at key elements
– one of which is information
sharing. Knowing more and knowing
earlier absolutely helps managers
make smarter, faster decisions.
In fact, through collaboration,
comes information that drives
revenues and efficiencies across
the supply chain.
Each
segment of the supply chain
suffers when there is insufficient
access to accurate data. Retailers
need to know all they can about
consumer purchasing patterns,
or else they are likely to order
less than the actual demand
(resulting in lost sales) or
order excess inventory (resulting
in carry costs, warehousing
costs, and/or markdowns). Improved
technology used by retailers,
such as POS (point of sale)
systems, tracks purchasing patterns
in real time and feeds information
to analytical tools that help
the retailer anticipate demand.
On
the manufacturing side, there
are ERP (enterprise resource
planning) tools that combine
demand data with actual shipping
data to efficiently plan production
and place inventory in the best
location to support the expected
demand.
How
does the 3PL fit into this information
sharing scenario? Through reporting
and visibility tools, we can
help identify and provide critical
information. It’s a two-way
street.
The
advantage of keeping the 3PL
in the loop is that better decisions
can be made regarding tactical
issues, such as planning and
utilizing human and capital
resources throughout the supply
chain. As logistics and supply
chain professionals, if we remain
alert and proactive –
and have full access to whatever
information is available –
we can provide “dynamic
management” with built-in
flexibility. We can accommodate
daily shipping peaks and enable
transportation managers to use
the most cost-effective modes
and carriers.
For
example, with reliable information,
managers can spread the volume
over the week. If the same volume
hits the warehouse without warning,
it could lead to overtime, late
shipments and detention costs
– even temporary gridlock
in the warehouse as product
is picked and staged for customers
and carriers that were not prepared
for the spike and arrive late.
With a timely “heads-up,”
the warehouse management team
can shift labor, bring temporary
labor in, get an early start
on the volume spike, and prioritize
work to ensure that the consumer
need is met at the right cost.
Challenge
yourself to think about the data
your organization could be sharing
with its partners and the types
of data you wish you were getting
on a more timely basis from your
partners. This list might include
forecasts, promotion plans, new
items, product deployment strategies
and impact, customer changes,
CPU vs. delivered, VMI, hours
of operation, and specific shipping
or receiving requirements. As
collaboration gains momentum,
it may be our job to educate manufacturers
and retailers that keeping US
in the know benefits THEM.
Agree
or disgree with our expert's
perspective? What would you
add? Let us know your thoughts
for publication in the SCDigest
newsletter Feedback section,
and on the web site. Upon request,
comments will be posted with
the respondents name or company
withheld. |