3 Supply Chain Management Articles of Interest

Article 1: How Do Forecasting Processes Need to Change in Tough and More Dynamic Times?

Summary: The changes in the economy make it diffcult to use history to forecast the future. The following 3 suggestions may help:

• Use downstream information, such as POS data, as an early indicator on the changes taking place in a product's consumption (i.e. their shipment data lags 'real' consumption).


• Keep abreast on what is going on in the market by reading more of what economists are talking about in order to incorporate economic impacts into their demand forecasts.


• Stay on top of what their Sales and Marketing organizations are doing to incorporate promotional effects that will heavily impact demand.

Note: Cadent Resources, Inc's assisted demand planning services using DemandCaster incorporates the aforementioned elements to help companies manage the volatility of this economic storm.

Article 2: Solving the Riddle of Supply Chain Cost Reduction

Summary: Indiscriminate across-the-board cuts decrease, not increase, profitability. Segregate your costs in the following 3 categories and then focus on category before proceeding the other 2. Category 2 and 3 are typically tied to the organizations mission and vision and should be carefully considered prior to cost cutting.

• Category 1. Capital and operating costs: Traditional ongoing expenditures


• Category 2. Talent costs: Expenditures for key resources that are required to reduce costs and increase profitability


• Category 3. Strategic costs: Expenditures for strategic profit improvement initiatives.

Article 3: Ten Ideas for Squeezing more Working Capital from your Supply Chain

Summary: Deloitte Consulting Canada provides 10 ideas to help improve working capital.

1. Focus on the cash-to-cash conversion cycle


2. Think like a CFO


3. Focus on inventory reduction


4. Extend payables, intelligently


5. Manage and expedite receivables


6. Audit payables and receivables transactions


7. Consider alternate supply chain financing options


8. Ensure you have a robust framework for managing supply chain risk


9. Eliminate fixed costs


10. Think beyond your four walls

Comments

[Dean Vella]

Infographic by the University of San Francisco, earn your > Supply Chain Certificate.