Student Articles Crossword Puzzle Do You Know?? Industry Facts
Volume 07, Issue 02, April 2018.
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“Almost all quality improvement comes via simplification of design, manufacturing, layout, processes, and procedures.” - Tom Peters
Customers Shaping Future Logistics Trends With the rise of e-commerce, the value of logistics has grown. Demand is increasing faster and new technologies are disrupting the market. In response to the growing customer needs the logistics industry is responding to: 1. Consumers will demand faster turnaround times on Last Mile Deliveries and companies will localize warehouses in areas with higher order rates. Hence, manufacturers, distributors, and logistics professionals, need to re-evaluate their logistics strategy for last mile leading to win-win for both logistics professionals and consumers. 2. Lines defining peak holiday shopping seasons are likely to blur with traditional shopping. There is a continued surge in sales with online retailers and brick-and-mortar stores with several weeks of sales for Black Friday, small business Saturday, giving Tuesday, etc. As a result, logistics entities will face added pressure to move more product, adherence to record-breaking deals of the holiday shopping season and provide superior customer service. 3. Brick-and-Mortar stores will stay relevant, as consumers are actively engaged in the shopping experience online, even while in the store looking at the same product on the shelf. This omni-channel supply chain will require shippers to rethink their strategies. 4. SNEW waves will require reevaluation of logistics strategy. It is a combination of factors that impact logistic operations, including social media, news, event and weather data that will impact the re-evaluation of logistics strategy.
5. As demand for 3PLs grow, supply chain and logistics professionals will to improve shipper 3PL relationship to stay competitive. 6. Openness to New Technologies will increase opportunity to push operations forward, increase productivity and leverage new technologies in 2018. Source: Cesaris White Paper, Feb 2018
~Waris Akhtar (16 JGBS)
Industry Facts World Resource Institute’s landmark Greenhouse Gas Protocol has published a corporate guide to help underpin greenhouse gas (GHG) accounting and reporting efforts. Its five principles include: Relevance; Transparency; Completeness; Consistency; and Accuracy.
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Reduce Supply Chain Risks When Going Global Global supply chains are more prevalent these days by many emerging and established companies to massively reduce their supply chain costs by supplier coordination, procurement consolidation, etc. but it also possesses serious threats to the supply chain if the risks of going global is ignored. Generally, the most critical area is to which can affect the whole supply chain when going global is international trade compliance. Hence, below are some steps to mitigate supply chain risks when going global are as follows: 1. It is essential to understand the risks of going global and to understand and follow all the rules and trade compliances associated with it. Study by University of Tennessee 2017
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shows that 90% of supply chain executives didn’t take this seriously. Developing and implementing a robust compliance policy helps in creating a reliable supply chain by avoiding penalties, controlling costs, etc. An Export and Import Management Compliance Program helps in risk mitigation from regulatory compliances by providing best insurance against them. Monitoring regulatory requirements and changes, recordkeeping, training and auditing helps in accessing the trade compliance risks. Developing a proper system for tracking of import and export of goods and ensuring all regulatory compliances are met by proper documentation and verification. Generally, companies lack the personnel and expertise to track trade compliance and manage supply chains. With the help of supply chain solution provider, its gets easier to enter companies in the global marketplace quickly and setup its operations substantially with no risk leading to long term success in global markets.
Source: Inbound Logistics, Dec 2017
~ Sachin Chitla (17 JGBS)
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How it all Began
In this issue
OCTANE-The Octaphi Newsletter
How it all Began…………. In 1995, founder Mr. Tulsi Tanti was managing a 20-employee textile company. Due to the erratic availability of power locally and its rising costs, the highest expenditure after the raw materials was electricity. Electricity cost also offset any profits made by the company. After providing electricity for his own company, Tanti moved into wind energy production to secure textile company’s needs and founded Suzlon Energy.
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4. CAPACITY 8. JIDOKA.
~ Sagar Rathi (17JGBS)
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3. SLACK 7. KANBAN
Source: Supply Chain Brain, Jan 2018
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2. WARRANTY 6. VARIETY
Nowadays, customers are provided with flexible and different delivery options to satisfy their expectations and with increase in fuel prices, there arises a need for identifying better ways to make the transportation operations leaner. This can be done primarily by efficient use of vehicles, fuel and drivers resulting in less transportation costs. Various ways to optimize route planning to keep transportation costs in control are: 1. Using software related to scheduling and routing which considers all real-world constraints which the operations face daily, facilitating route planning. 2. Productivity can be improved by linking the routing software to live vehicle tracking which facilitates comparing planned routes against actual routes. It helps in detecting delays in the transportation and identification of unplanned activities and slack. 3. Modelling different scenarios with changes in vehicle sizes, delivery hours, frequencies and locations, to obtain the best fit in terms of costs incurred. 4. In order to ensure the transportation costs should be minimum, it is necessary fine tune the operations considering the levels of congestion, new customers and delivery windows. 5. Judicious decision making in delivery of goods in terms of their weight results in significant savings in fuel consumption. 6. Integrating drivers KRA with empty miles and driving speed leads to economical transportation. 7. Better time management and avoiding empty miles can be achieved by consolidation of collections and delivery in the same vehicle. 8. Maximizing truck efficiency by ensuring that the trucks are fully occupied with goods with up-todate volumetric data. 9. Improving driver efficiency and effective vehicle utilization can be done by analysing the data gathered from vehicle tracking devices.
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Clues: Across: 1. A person or company offering something for sale, especially a trader in the street. 2. Likely variability in the cost of purchased products or services that may result in higher prices. 3. A customer orders that cannot be filled when promised or demanded but is filled later. 4. Movement of product from one station to next after cycle time. Down: 5. Time elapsed between the receipt of a customer order and filling it. 6. Relocating an activity to contract manufacturer in another country. 7. The predetermined minimum level that an inventory position must reach before a fixed quantity of the SKU is ordered. 8. A type of ship designed to permit cargo to be driven on at origin and off at destination, used esp. for movement of automobiles.
~ Sanjana N (17 JGBS)
Student’s Feedback Corner I am a regular reader of Octane Newsletter. The point which attracts me the most is the intuitive and updated articles which are beneficial to keep up the professionals on the track. I guess increasing its frequency is the only query I have. ~ Sneha Kaushal (17 IIFT) Octane an insightful source enlightening the world of supply chain industry and all the new things happening in this industry. I truly recommend all management professionals to read this newsletter. ~ Apoorv Dixit (16 NIMMS) ~
Editorial Board: Saroj Koul, Vasudha Kamra Jindal Global Business School, Delhi NCR Contact us: octaphi@jgu.edu.in
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Answers – Vol. 7, Issue 1:
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Across: 1. BOTTLENECK Down: 5. BACKOFFICE
Optimizing Route Planning to Cut Costs
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