Analyst Insight: The rise of omnichannel fulfillment and e-commerce is having a dramatic impact on distribution network design. As omnichannel fulfillment becomes the new normal for consumers, distribution and logistics professionals are increasingly reassessing their fulfillment networks, the attributes of their distribution facilities and the expectations placed on their partners. This reassessment is leading to more innovative fulfillment options, but uncertainty remains on the profitability of additional customer service solutions. – Barry Blake, Vice President, Research, SCM World
Analyst Insight: Car ownership in developing economies is on the rise. By 2020, annual world vehicle production could reach 85 to 90 million units. That will mean another 75 to 100 plants, each producing around 300,000 cars a year, will be needed, essentially in or close to the world's fastest-developing countries. Automakers have to create new global production strategies to serve these multiple diverse markets. – Pierfrancesco Manenti, Vice President, Research, SCM World
Companies are finally beginning to take advantage of labor-management systems in their distribution centers. Lou Cerny, vice president of Sedlak Consultants, describes the rate of adoption, and advises on why, when and how to implement LMS in your own operation.
With the Jan. 1 U.S. Drug Supply Chain Security Act (DSCSA) lot-level traceability deadline now behind us, many pharmaceutical companies are turning their attention to full drug serialization. DSCSA requires that manufacturers mark packages with a product identifier, serial number, lot number, and expiration date by 2017. In that period, highly regulated packaging and distribution processes must be changed; physical equipment must be procured and operationalized; enterprise-wide IT must be implemented; and end-to-end serialization testing with supply chain partners must take place well in advance of the deadline to allow time for any necessary adjustments. Given these multi-faceted complexities, three years is an aggressive implementation time frame.
Sears Holding Company needed to improve service to online shoppers, to stay competitive with both traditional and e-commerce rivals. Chief supply chain officer Bill Hutchinson and vice president Jeff Starecheski tell how it was done. A finalist in the SupplyChainBrain/CSCMP Supply Chain Innovation Award for 2014.
Andrea Atwell, vice president of L'Oreal, is passionate about the value that a successful demand planning team can bring to an organization. She talks about recruitment, retention and the impact demand planners have on an organization.
Inventory optimization: Old in concept, but new in application. Chris Russell, vice president of Logility, discusses trends in the use of the practice, especially from a multi-echelon perspective.
Transporting retail hazardous waste classified by the Environmental Protection Agency is not the standard in the world of trucking and transportation. There are multiple layers of complex logistics and risks involved in transporting this type of waste, making it a special niche within hazardous materials hauling.
Analyst Insight: The sales and operations planning process has fairly deep roots in most companies. Research by SCM World shows that many have been able to extend the process across most internal functions. However, few companies have extended the process externally to trading partners. The incentive structure of buyers and sellers tends to set these groups at cross-purposes. Flexibility pricing can shift the incentives in a direction that forces companies to negotiate the value of flexibility. - Barry Blake, Vice President, Research, SCM World
Analyst Insight: For both B2C and B2B, cloud technology is nothing new, but for supply chains the adoption has assumed a more guarded pace. That is to be expected: supply chain professionals are accustomed to operating in a world built on legacy applications and bolt-on point solutions. The promise of the cloud had been elusive, but supply chain systems are beginning to take advantage of the business model changes afforded by cloud solutions. - Guy F. Courtin, Vice President, Research, SCM World
