Supply chain makes the backbone of a company’s operations, taking the product from the design stage to parts procurement, manufacturing and delivering to the hands of end users. Today’s supply chain has become increasingly more global and complex which presents greater challenges and risks. Any sort of disruption in between, due to lack of planning, system failure or natural disaster can wreck havoc on the company as a whole. We have had many instances where companies ignored supply chain problems or failed to anticipate the risks and faced huge losses. A well-known example of supply chain risk management is the fire that destroyed an electronics component plant in New Mexico in 2000. This plant supplied both Nokia and Eriksson. Nokia reacted promptly, securing components from the market. Eriksson, on the other hand, took more than a week’s time to even communicate the message to senior level and make a rescue plan. Hence it was left with supply shortages which translated into direct lost sales estimated at $390M. The different reactions from similar players to a single event in time show the benefits of monitoring and managing risks in supply chains and weighing the outcomes.

Other recent example is Boeing which has again and again delayed the launch of its new Dreamliner because of supply chain problems. Boeing was supposed to deliver the first batch of 787 in May 2008 but the plane had been hampered by lengthy delays caused by production problems. One of the major reasons for the delay in launching the 787 dreamliner was due to the faulty parts from suppliers. The lacks of envisioning such risks and mitigating them by coordinating with suppliers or broadening supplier base have affected one of the most publicized launches of Boeing. As a result, Boeing has lost credibility, and billions of dollars in expected additional costs and penalties.

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Writing standard work instructions (SWIs) takes time and patience but they are worth the pain in the end.  SWIs help to ensure standardized procedures for optimal productivity.  This helps with consistency in production—which is what we want!  SWIs are also great for training new employees.  What better thing to leave the new worker with than detailed step-by-step instructions on how to do a job?  The objective of an SWI is to be able to explain the procedure to anyone not familiar with the system.

When writing SWIs make sure to include as much detail as possible.  This includes but is not limited to:  job title, purpose, scope, and job related definitions.  In the procedure section include the action and who’s responsibility it is to perform.  In this section step-by-step pictures are also extremely useful.

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When forecasting, do not get stuck on having the exact answer to future demand.  Focus on getting as close to actual demand as possible.  Having a consistent forecast (to actual demand) is most important.

Use Chapmans’s Rules:

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Internships provide basic work experience to a student before graduation and starting full time work.  Most of the time this experience is invaluable for a student up and coming in the particular area of study.  Internships help in job interviews and gaining full time employment, whether it is with the same company that was interned with or a new one.

For example my current internship is showing me exactly how the factory works—from order taking through production and final product shipment.  This gives me valuable insight on how the entire company operates and can then help me attain full time employment with the company.

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Supply chain management should not be a standalone effort but a part of an overall business strategy, to get most beneficial results. Making any improvements in supply chain operations generally also require investment in related functions such as technology. However, in rough economy, companies cut back on investment dollars available and executives struggle to prioritize the functional areas within their supply chain that most need the investment.

To guide the investment decision, executives should prioritize and evaluate opportunities that lead to improvements in one or more of the business performance measures. That may be reduced operating costs by reducing inventory; increasing scale of operations by sensing and increasing demand of the products and matching supply to that demand or increasing flexibility by bringing modular product design or adding a new product line in a plant. A good example of such investment could be a consumer goods company that upgrades its demand planning system to ensure that it can meet the retailer’s requirements while reducing excess inventory and increase their shelf presence by developing mutual profitability.

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The career fair can be a daunting thing.  There are dozens of companies there to impress and even more representatives to talk to.  The following is a short list of tips for trying to succeed at the career fair:

• Dress – business suits are a must.  A good rule of thumb is to always be one level better dressed than the company representatives.  This means business suits when the reps are wearing business casual khakis and polo shirts.  Business suits give a good first impression and display the student as a serious applicant.
• Do not talk to company reps with friends tagging along.  This will allow the applicant to be the main and only focus of attention for the company.
• Speak clearly, have a firm handshake, and stand up straight.
• Have the resume ready to be handed over.  Don’t spend time searching through papers for the resume.  The company representatives find this unorganized and a waste of time.
• Do not bring other company give-a-ways to the next booth.  Once finished talking with one company that had free merchandise find a place to leave it before talking with the next company.
• Do not wait for the company representative to talk to first.  Be forward and exude confidence – walk up, introduce yourself, and shake hands.
• Be prepared by researching the companies.  Try and know a few facts and what they do!

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Quality control promotes cycle time reduction, variability reduction, and better management.  Methods used to measure quality control include statistical process control (SPC), pareto charts, ishakawa diagrams (cause-and-effect, fishbone), check sheets, scatter plots, taguchi quality philosophy, and the 5 S’s.  Some of these methods require extensive measurements and a lot of information to give an accurate description of the situation and some of these methods require only a brainstorming session.  Below a few of these are detailed.

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In today’s global economy, products flow in many directions under multiple modes and the lines between trading partners are blurring. The challenges are in meeting different objectives as to maximize capacity, minimize costs, and provide service and on-time deliveries to meet customer and shareholder demands.

Understanding a set of KPIs that should be analyzed in order to minimize error and maximize performance is critical to put control in the process and improve efficiency. Using the KPIs that enables more efficient transportation and greater profitability may require significant changes in the way an organization performs every phase of the transportation process. For a co-ordinated and smooth functioning, it must work efficiently with network partners to take advantage of last-minute opportunities and react in real time by having real-world visibility of transportation events.

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Traditional demand shaping techniques of price discounts may increase sales volume and take business away from competitors but effectively they can also lead to decreased profitability. There are other techniques that can help manage demand as new product developments, extended warranty services, trade marketing, advertising and coupons/trials. These techniques have the potential to change demand and put it in line with the business strategy. Take new product development for example. Introducing a new product is often a source of sustained competitive advantage and for many companies it has worked turnaround. Apple’s ipod and iphone have created a trend where it always bring new products and sway the market to its side. We are yet to assess the impact ipad would make which is by the way held high in analyst’s forecasts. I am sure this technique has a huge impact and other industries outside the electronics/high tech products can also implement this as intelligently to manage the competition and succeed.

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Ahhhhhhhhh!!! If you’ve ever had to deal with this aspect of transportation, I’m sure that you’ve had a similar reaction to this topic. Whether you are a grizzled veteran or just getting your feet wet in transportation I’m sure you’ll find a few choice nuggets of value here as we explore the convoluted world of Freight Claims.

Let’s start at the beginning for those novices who are reading along. “What is a Freight Claim?” Every supply chain requires the use of transportation at some point and most of us have multiple transportation needs within a single supply chain. Typically, the goods get from point A to point B without a problem.  Sometimes the goods get lost, damaged or completely destroyed in the care of the transportation company.

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