Principles of SCM

Partnering With Suppliers in SCM

By |2015|

Determined to pay as low a price as possible for materials, manufacturers have not traditionally cultivated warm relationships with suppliers. In the words of one general manager: “The best approach to supply is to have as many players as possible fighting for their piece of the pie—that’s when you get the best pricing.” […]

Importance of Sales and Operations Planning In SCM

By |2015|

Forecasting has historically been an isolated activity, with multiple departments’ independently creating forecasts for the same products—all using their own assumptions, measures, and level of detail. Many consult the marketplace only informally, and few involve their major suppliers in the process. The functional orientation of many companies has just made things worse, allowing sales forecasts to envision growing demand while manufacturing second-guesses how much product the market actually wants. […]

Customizing The Logistics Network in SCM

By |2015|

Companies have traditionally taken a monolithic approach to logistics network design in organizing their inventory, warehouse, and transportation activities to meet a single standard. For some, the logistics network has been designed to meet the average service requirements of all customers; for others, to satisfy the toughest requirements of a single customer segment. […]

Benefits of Segmenting Customers in SCM

By |2015|

Segmentation has traditionally grouped customers by industry, product, or trade channel and then taken a one-size fits-all approach to serving them, averaging costs and profitability within and across segments. The typical result, as one manager admits: “We don’t fully understand the relative value customers place on our service offerings.” […]