Tag Archives: Management

Addressing Burnout in Supply Chain Management

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Addressing Burnout in Supply Chain Management

Addressing Burnout in Supply Chain Management

Supply chain employees mean so much to our economy but as a group they’re suffering from burnout –– and for good reason. They’re navigating heavy workloads, long hours, inefficient technology, constant pressure to meet demands, and inadequate health and wellness support.

Additionally, the global electronics supply chain has encountered an unprecedented series of disruptions during the past two years.

Addressing burnout in supply chain management is critical because worn-out employees don’t perform at their best, which disrupts the operation’s workflow and overall success. Employees and management have a role in addressing burnout in supply chain management. Let’s talk more about this below.

Employees must speak up

Burnout manifests as physical, mental, and emotional exhaustion that results in diminished work performance, motivation, and engagement.

Working in a high-pressure industry like supply chain management can cause chronic stress that has workers constantly on edge. In addition, those in supply chain roles are often overworked and strained due to the increased commerce demand, leading to more burnt-out employees.

Mitigating burnout and bettering the work conditions for supply chain employees starts with them. Employees must take responsibility for their own mental health and wellness.

Employees need to communicate their wellness needs and suggestions for accommodating them. They should set boundaries at work and speak up when toxicity threatens their productivity and peace of mind.

They must also work on their holistic health outside of work. Practicing gratitude and self-compassion to cope with workplace stress, implementing daily self-care, and attending therapy are great places to start. While this should be encouraged, managers and leaders also have a crucial role in addressing workplace burnout.

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5 Ways Analytics Are Disrupting Supply Chain Management

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5 Ways Analytics Are Disrupting Supply Chain Management

5 Ways Analytics Are Disrupting Supply Chain Management

Harmonizing supply chain management analytics will put organizations on a path to automating their operations.

The evolution of infotech increased customer expectations, economic behavior, and other competitive priorities have caused firms to modify themselves in the current business landscape. Supply chains globally are becoming more complex, thanks to globalization and the consistently changing dynamics of demand and supply. As per a forecast by Gartner, the global supply chain management market was valued at USD 15.85 billion in 2020 and is expected to reach almost USD 31 billion by 2026.

Businesses are channeling the power of big data analytics to disrupt transformations at all levels of supply chain management. Data started as a fundamental component of digital transformation and is now a revolutionary concept. It is the key to achieving breakthroughs in supply chain management systems, and more organizations are integrating data analytics to mine data for proactive insights and accelerate intelligent decision-making.

Big data implementation in supply chain management addresses several issues, from strategic to operational to tactical. It includes everything from building efficient communication between suppliers and manufacturers to boosting delivery times. Decision-makers can utilize analytics reports to increase operational efficiency and boost productivity by closely monitoring the system’s performance at each level.

What is Big Supply Chain Analytics, and How Does it Work?

Integrating big data analytics with the supply chain makes big supply chain analytics enable business executives to compute better growth decisions for all possible maneuvers by combining data and quantitative methodologies. Notably, it adds two features.

First, it broadens the dataset for analysis beyond internal data stored in existing SCM and ERP systems. Second, it uses advanced statistical techniques to analyze the new and existing data. This generates new insights that help make better decisions for improving front-line operations and strategic decisions like implementing the best supply chain models.

Here are five ways big data and analytics are disrupting supply chain management:

1) Improved demand forecasting

Demand forecasting is one of the crucial steps in building a successful supply chain strategy. With data science and analytics in play, businesses experience automated demand forecasting. This assists them in quickly responding to fluctuations in the market and streamlining the optimal stock levels every time.

2) Enhanced production efficiency

Data science and analytics play a significant role in gauging organizational performance. Accurate application of big data analytics can help organizations track, analyze, and share employee performance metrics in real time. You can identify excellent employees who are struggling to maintain a consistent performance. This could be quickly done with IoT-enabled work badges, which exchange information with sensors installed in production line units.

3) Better sourcing and supplier management

Supply chain management systems have empowered organizations to collate data on multiple suppliers. Using data science solutions, you can leverage this data to gain insights into the historical record of any supplier. With this, you can gauge based on crucial metrics such as compliance, location, reviews, feedback, services, etc.

4) Better warehouse management

Warehouses are acquiring modern technology and have started installing sensors to collect data on the inventory flow. This helps you build an extensive database containing information based on the weight and dimensions of the packages. With sensors installed in your warehouse, you can identify bottlenecks that obstruct the flow and can be easily resolved at the earliest with the big data-fueled systems.

5) Improved distribution and logistics

Order fulfillment and traceability are essential for business productivity and customer satisfaction. Logistics have traditionally been cost-focused and effectively look for ways that provide them competitive advantages. Data science solutions enable logistic providers to leverage data analytics to improve their operations. For instance, they use fuel consumption analytics to improve driving efficiency. With GPS technology, they can track real-time routing of deliveries and reduce long waiting times by allocating nearby warehouses.

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The changing role of the CFO in a post-Covid-19 world

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The changing role of the CFO in a post-Covid-19 world

The changing role of the CFO in a post-Covid-19 world

Pre-Covid-19, CFOs primarily focused on reporting historical financial performance. But today, with rising logistics costs, supply chain bottlenecks, escalating input costs, and the uncertainty of sales, developing a forward-looking perspective is a must, write Chee Wee Teo, Huan Gao and Adam Mokhtee from Alvarez & Marsal.

In the months and years ahead, the CFO role must significantly evolve to keep up with the ever-changing Covid-19 environment. To be successful in the role, CFOs need to apply predictive thinking, adopt a greater strategic view, and increase their focus on forward risk assessment and contingency planning.

Develop a forward-looking perspective

Traditionally, finance teams spent 80% of their time on reporting results and 20% of their time on forecasting. In a Covid and post-Covid world, that ratio needs to shift toward a forward-looking approach that will better prepare companies to respond to unexpected events.

With this new approach, the CFO’s conversations with the CEO and the board will center on what could happen in the future. For the CFO who is accustomed to relying on historical data, this may be an uncomfortable transition, but it’s vital for the changing role of the effective CFO.

Digitize the finance function

Although digitizing processes has always been necessary for efficiency, the digitization offorecasting has become especially crucial. Leveraging digitization for predictive analytics can help anticipate challenges ahead and allow companies to stress test their business plans.

In some companies, the CFO manages the finance team while the Chief Digital Officer leads the data analytics effort. We strongly encourage the finance function to collaborate with data analytics so that the CFO can develop a predictive, forward-looking view of where the business can go.

The following should be digitization focus areas:

Customer focus:

Build a profile of key customers, their cadence in ordering products, consumption pattern and liquidity situation.

Production and inventory management:

Establish a robust production system (that captures the right production costs) all the way through to an effective sales fulfillment (that delivers the right product to customers at the right time witminimal production waste and inventory leftover). These interdependent processes are typically filled with manual touchpoints and subject to human judgement. This can be significantly augmented with digital tools to drive optimization.

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Transforming cold chain performance and management in lower-income countries

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Transforming cold chain performance and management in lower-income countries

Transforming cold chain performance and management in lower-income countries

In many countries, one of the common factors limiting full and equitable access to effective immunization is the existence of gaps in cold chain and logistics (CCL) systems. This article focuses on the critical contribution that better management of CCL performance can make in addressing these barriers, as well as some essential practices needed to achieve and sustain these gains. These include (i) an emphasis on continuous improvement in CCL performance indicators, (ii) strong coordination and accountability across multiple stakeholders, and (iii) making the most of limited financial resources.

This article is informed by the Clinton Health Access Initiative’s (CHAI’s) experience working with National Immunization Programs (NIPs) and immunization partners to improve the effectiveness and efficiency of CCL systems (including CCE deployment and maintenance, temperature monitoring and control, stock management and distribution) across ten Gavi-supported “focus” countries.

1. Introduction

Vaccines can dramatically reduce morbidity and mortality from many serious diseases [1], and have a high return on investment [2].1 Unfortunately, gaps in vaccine cold chain and logistics (CCL) systems are one of the common factors limiting full and equitable access to the benefits of immunization. This is because such gaps undermine the availability and potency of vaccines at the point of administration, prevent the introduction of new life-saving vaccines, and waste precious human and financial resources [3].

2. Section I: Targeting CCL performance

The vaccines CCL system is considered to be performing well when (i) the full schedule of antigens is consistently available to serve the target population, (ii) in potent condition, (iii) at an affordable cost, and (iv) with a CCL network of sufficient capacity and reach to meet current and upcoming NIP goals (e.g., new vaccine introductions) [5].

3. Section II: Three key management practices to maximize CCL performance

Once programs appropriately target CCL performance, three management practices are critical to achieve effective and sustained improvements in these KPIs.

  • 3.1. From “firefighting” to continuous improvement
  • 3.2. Better coordination and accountability
  • 3.3. Making the most of limited resources

4. Conclusion

Investing in improved CCL management is crucial to sustainably improve CCL performance and provide the maximum benefit to immunization programs. As detailed above, success will require CCL management to focus on continuously improving CCL performance, have strong coordination and accountability, and make the most of the limited resources available.

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10 Potential Risks in Cold Chain Management

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10 Potential Risks in Cold Chain Management

10 Potential Risks in Cold Chain Management

Socio-political unrest, labor shortages, wars, geological events, to pandemic concerns; these are just a few of the things that could affect changes in shipping patterns and/or logistics strategies.

Seemingly unrelated events halfway around the world can impact a shipment out for delivery, and there’s nothing your production or logistics teams can do about it. That’s the inherent volatility of a supply chain. It’s worse still for temperature-controlled logistics.

Therefore, the best you can do is mitigate the risk.

Shippers are urged to expect the worst and give it their best when handling high-value shipments, ensuring there’s enough care and contingency in place to mitigate unexpected risks.

The problem is, supply chain risk management is a costly affair, and that’s especially true for a cold chain. Nonetheless, it’s a necessary cost to avoid unnecessary loss, especially when you weigh the strategic importance of cold chains to improve, nay, save lives.

10 Things That Could Interrupt or Disrupt Your Cold Chain

Shipping high-value consignments over long distances within their prescribed temperature range — consistently and without excursion — is a collaborative effort.

  1. Pressure to Meet Cost Efficiencies in Cold Chain Management
  2. Lack of Uniform Infrastructure Globally Affecting Cold Chains
  3. Impact of Increased Regulations on Cold Chain Management
  4. Environmental Impact on Your Cold Chain
  5. Supplier Risk in Your Cold Chain
  6. Distribution/Delivery Risk in Cold Chain
  7. The Human Element in Cold Chain Risk Management
  8. Security Risk in Your Cold Chain
  9. Retailer Risk in Your Cold Chain
  10. Customer/Demand Risks to Your Cold Chain Logistics

How to Reduce Risks in Cold Chain Management

It’s no secret that cold chain assurance will cost you, but how can you run a lean cold chain while still mitigating the risks?

The key to dealing with unforeseen challenges is to prepare, plan ahead, and have enough contingencies, as well as a robust risk management strategy in place, supported by stringent processes and technologies.

How can you achieve that when the window to act and prevent losses can be a matter of hours or scant minutes?

You need a real-time cold chain monitoring system which can monitor your temperature-controlled shipments in-transit as well as in a warehouse.

Temperature data loggers only provide you with post-shipment audit trails, but with the number of weak links in your cold chain, you would need more actionable real-time data.

Read more at 10 Potential Risks in Cold Chain Management

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What’s the Next Phase of Supply Chain Evolution?

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What’s the Next Phase of Supply Chain Evolution?

What’s the Next Phase of Supply Chain Evolution?

The reworking of supply chains has a simple purpose of fitting the new world economy’s needs and demands. And freight data sharing platforms had already started before the mess of 2020 began. Additionally, the shift towards digital media and reinvented processes of global supply chains continues still today. Supply chain evolution is highly focused on market sub-segments, especially on those within the middle class. According to Supply Chain Management Review, “this matters a lot in a world where the population of middle-class consumers will reach 5.5 billion or over 60% of world population by 2030—a phenomenal growth from 1 billion middle-class people comprising 20% of world population in 1985. Middle-class consumption will soon comprise one-third of global GDP. Five-and-a-half times as many middle-class consumers means far too many consumers to be efficiently served by a global factory.” These figures hint at why supply chain evolution is essential. It ensures shippers can meet consumers’ needs and demands to keep up with the global market shift.

The Driving Forces of Digital Transformation

The move towards digital processes and platforms is essential for supply chain evolution, and behind the movement are four driving forces that necessitate such a transformation. They include the following:

  1. Competition. Competition drives innovation and keeps businesses on their toes, especially within the supply chain network.
  2. E-commerce. There has long been a steady push towards virtual processes for supply chains, and recent world events make it all the more necessary to embrace e-commerce.
  3. Visibility. Another critical part of supply chain evolution and growth in the modern age relies heavily on improving the network’s visibility.
  4. Speed of delivery. For most supply chains and transportation management teams, accurate and timely delivery is the ultimate way to keep customers satisfied.

The Digital Twin Is Getting Smarter and Adaptive

There is a digital side for every aspect of life, which is often unseen and largely ignored. It is the digital twin, the virtual symbiote, that exists for just about everything in existence. The digital twin is a large part of the supply chain evolution process. Think about it. Shopping and purchases have a face-to-face component as well as a virtual component. Deliveries and shipments can be managed with a physical paper trail or with a digital and automated platform. The digital twin can no longer be ignored and will no longer be relegated to the corner as it is becoming more and more essential for the success of supply chain evolution.

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Inventory Management: We Can Do Better

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Inventory Management: We Can Do Better

Inventory Management: We Can Do Better

Each day through the COVID-19 pandemic, I tune into Anthony Cuomo’s (governor of New York) daily briefings. It is my break in the day. As a multi-tasker, when Governor Cuomo broadcasts, I use the time to work out on my rowing machine.

His opening line is, “Let’s start with facts. While we all have opinions, let’s start by reviewing the facts.” When he says this, I smile and row harder. I wish that all discussions could start with the facts.

Reflection

In my day-to-day work in supply chain management, I find more encounter more opinions than facts. …most discussions are fueled by over-zealous and self-serving marketing programs. Strong opinions and egos (mostly male) abound… For over two decades, I obediently tapped my foot to technology leaders’ glibly spouting opinions. I seek facts, but I find that they are few and far between.

The lack of fact-based discovery makes me itch…

A Story

Last week on my Network of Networks call, a proud technology salesperson, let’s call him Jim, announced, “I am speaking at Logimed next week on the impact of Just-in-Time (JIT) on the COVID-19 response. Downsizing inventories over the past decade crippled the response.” As I heard Jim speak, I twisted in my seat unsure what to say.

I struggle when I hear opinions that don’t align with facts. So, let’s start with the data. (Yes, am that geeky kind-of-gal that likes to ground discussions in data.) In Table 1, I share research collected for the Supply Chains to Admire analysis on the average days of inventory by industry across the period of 2004 to 2019 by increments to match economic shifts. The period of 2007-2008 was the downturn of the recession while the period of 2009-2013 marked the recovery. (The source of this data is a syndicated data provider of public reporting termed “Y-Charts.”)

So when we start with the facts, it is clear that every industry peer group increased the days of inventory. In addition, each peer group is markedly different. So, why have we not reduced inventory?

Now I will share my opinion.

  1. Complexity. Supply chain leaders in the beverage and household products industries struggled to manage complexity.
  2. Supply Chain Leadership. With average operating margins of 20-22%, medical device and pharmaceutical companies are supply chain laggards.
  3. Supply Management. Industries like automotive pushed cost and waste backward in the supply chain.
  4. Network Design. Only 9% of companies actively design the supply chain with a focus on buffer design.
  5. Factory Scheduling. With the evolution of the advanced planning market and the growth of the market share of ERP expansionist companies, solution capabilities in factory scheduling weakened.
  6. Executive Understanding. Many executives do not understand the form and function of inventory and the need for inventory buffers.
  7. Balance in S&OP. While 82% of companies have an S&OP process, less than 50% of company processes are balanced and only 1/3 of companies actively run “what-if” scenarios.

Read more at Inventory Management: We Can Do Better

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April manufacturing output feels impact of COVID-19

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While March began to show how the coronavirus, or COVID-19, began to truly impact the economy, things came into even starker perspective in April, based on data in the Institute for Supply Management’s (ISM) Manufacturing Report on Business, which was released today.

The report’s key metric—the PMI—at 41.5 (a reading of 50 or higher indicates growth)—declined 7.6% from March’s 41.5, falling for the second straight month, which was preceded by two months of growth. The April reading was 7.5% below the 12-month average of 49.0 and is also the lowest reading over the last 12 months and the lowest reading going back to April 2009’s 39.9. What’s more, ISM reported that April marked the first month that the overall economy contracted after a stretch of 131 consecutive months of economic expansion.

ISM reported that two of the 18 manufacturing sectors it tracks saw growth in April, including Paper Products; and Food, Beverage & Tobacco Products. And the 15 industries reporting contraction in April, in order, are: Printing & Related Support Activities; Furniture & Related Products; Transportation Equipment; Textile Mills; Fabricated Metal Products; Nonmetallic Mineral Products; Machinery; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Wood Products; Miscellaneous Manufacturing; Computer & Electronic Products; Primary Metals; and Chemical Products.

Each of the report’s key metrics saw declines in April.

New orders, which are commonly referred to as the engine that drives manufacturing, saw a steep 15.1% decline, to 27.1 after a 7.6% decline, to 42.2, in March. This marks the third straight month of declines and is the lowest reading for new orders since December 2008’s 25.9. ISM said that two industries—Food, Beverage & Tobacco products and Paper Products—saw growth in April, with the remaining 16 all seeing declines.

Production—at 27.1—was down 20.2%, contracting for the second straight month and is the lowest figure since numeric ISM Report On Business index records were first issued in January 1948, with the 20.2% decrease from March representing the largest one month decline going back to January 1984, when it was down 20.7%. ISM said that two manufacturing sectors—Paper Products and Food, Beverage & Tobacco products—grew in April.

Employment—at 27.5—was down 16.3% compared to March, falling for the ninth consecutive month, and is its lowest reading since June 1949’s 27.2 reading, and represents the largest one-month percentage-point decrease going back to January 1948, when ISM began keeping numeric records. ISM said that each of the top six manufacturing sectors saw employment contraction driven by the furloughs and layoffs, due to a lack of new orders, with social distancing mandates also factoring into the number.

April inventories—at 49.7—headed up 2.8%, while contracting at a slower rate for the 11th consecutive month. The report explained that inventory contraction slowed as was expected, due to supply chain disruptions and the lack of labor to convert material, with 10 manufacturing sectors reporting higher inventory readings in April.

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The USC Marshall Center for Global Supply Chain Management stages “Covid-19: What’s Next?”

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The USC Marshall Center for Global Supply Chain Management stages “Covid-19: What’s Next?” live webinar on Wednesday, April 8, with the intention of bringing a new perspective to the crisis.

Webinar series part 2 features Jonathan Rosenthal, CEO of Saybrook Management, along with Chris Cookson, EY’s leader of U.S. West Supply Chain Operations.

The first session of “Connecting the World Through Networking Education and Advanced Research (NEAR) convened on March 4th, one of the most compelling presentations was made by Noel Hacegaba, deputy executive director of administration & operations at the Port of Long Beach.

He noted at the time that blank sailings in the transpacific with 20 percent of scheduled carrier calls curtailed, was having a negative impact across the supply chain.

“This led to concern that with a higher concentration of ship calls coming as a consequence, would lead to a mini-peak season every time,” he said.

Hacegaba, added that Long Beach was anticipating “a boomerang effect” – a surge of cargo that would create new challenges for the port’s supply chain partners.

That has yet to be realized, however, as the port continued to feel the economic effects of COVID-19 in March with more canceled sailings and a decline in cargo containers shipped through the nation’s second-busiest seaport.

Terminal operators and dockworkers moved 517,663 twenty-foot equivalent units (TEUs) last month, a 6.4% decline compared to March 2019. Imports were down 5% to 234,570 TEUs, while exports increased 10.7% to 145,442 TEUs. Empty containers shipped overseas dropped 21% to 137,652 TEUs.

Overseas health concerns over the coronavirus caused 19 canceled sailings to the Port of Long Beach during the opening quarter of 2020, which contributed to a 6.9% decline in cargo shipments compared to the first three months of 2019.

“The coronavirus is delivering a shock to the supply chain that continues to ripple across the national economy,” said Mario Cordero, Executive Director of the Port of Long Beach. “We’re definitely seeing a reduction in the flow of cargo at San Pedro Bay, but the ports remain open and operating, and we are maintaining business continuity.”

The frequency and intensity of cleaning efforts have been increased on the docks, at port offices and other common areas, in order to maintain the health and safety of dockworkers, truckers, terminal operators and others.

Read more at The USC Marshall Center for Global Supply Chain Management stages “Covid-19: What’s Next?”

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What Are the Benefits of Supplier Quality Audits?

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What Are the Benefits of Supplier Quality Audits?

What Are the Benefits of Supplier Quality Audits?

While you want to trust and count on your suppliers, do you really know for sure that they have the proper procedures in place, that the procedures are being actively applied, and that their employees follow their established procedures?

Supplier quality audits are the process of verifying that each of your suppliers is adhering to both industry standards as set by the law and independent organizations, as well as your own company and brand standards.

Audits are widely recognized as a pertinent part of doing business.

While there are many reasons for this practice, here are the six biggest benefits of performing supplier quality audits.

1. A Reduction of Risk

A significant amount of risk accompanies extended supply chains, outsourcing, and globalization. The risks include:

  1. Quality
  2. Safety
  3. Business Continuity
  4. Reputation
  5. Cost Volatility
  6. Supply Disruption
  7. Non-Compliance Fines
  8. Safety Incidents
  9. And More

2. Better Contractor Management and Business Relationships with Suppliers

Your business can gain ground when costs are reduced, contractor management is streamlined, brand reputation is protected, and long-term profitability is achieved. This is easier done when the following tasks are taken care of efficiently:

  1. Supplier Prequalification
  2. Supplier Audits
  3. Worker Management
  4. Insurance Monitoring
  5. Analytics

3. Expert Guidance on Safety and Sustainability Performance

While you already have strategies in place to manage the health, safety, and behaviors within your own organization, how do you know your suppliers, contractors, and vendors are similarly motivated?

Supplier quality audits actively foster an aligned culture of health and safety through:

  1. Contractor Prequalification
  2. Document Management
  3. Auditing
  4. Employee-Level Qualification and Training
  5. Insurance Verification
  6. Business Intelligence

4. Closer Alignment with Your Compliance Standards

Your business is under pressure to maintain compliance with:

  1. Country-specific regulations
  2. Industry standards and regulations
  3. Corporate policies and standards

5. Better Procurement Decisions

Procurement teams are under a lot of pressure to find, qualify, monitor, and manage suppliers, all while lowering the cost of doing so. With supplier quality auditing, procurement managers can make better and more cost-effective procurement decisions by:

  1. Mitigating risk through communication, evaluation, selection, and monitoring services.
  2. Gaining unprecedented visibility into safety statistics, risk profiles, and historical data.
  3. Reducing lead time and improving efficiency with ongoing guidance and support throughout the procurement process.
  4. Maximizing data quality on the entire supply chain.

6. Sustainable Business Practices

Today, an organization committed to improving the environment through sustainable growth is required to meet both regulatory requirements and societal expectations. Managing the long-term value of your company and its brand is party dependent on properly managing the environmental, social, financial, and economic impacts throughout its supply chain. All of this can be done more easily with thorough supplier quality audits.

Read more at What Are the Benefits of Supplier Quality Audits?

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