Friday, 31 October 2014

It's Halloween

It is Halloween ! Royale International wishes you the best TGIF party with your vampires & witches friends and a good harvest on the Trick or Treat fun with families & kids!

SCM in the Oil and Gas Industry – Part Five

Outsourcing is an alternative to vertical integration. Outsourcing is when some of the aspects of the product/service bundle which are taken outside the firm and contracted to a third party. The benefits include:
  • Allowing the business to focus on their core skills and strengths
  • Increasing the capacity of the business without increased overheads
  • Increasing the agility of the business within the market
  • Increasing corporate growth
  • Improving the performance of the supply chain
Business may be able to expand and develop without making large capital investments from outsourcing to increase flexibility especially during times of economic downturns. It’s also an option that can be extremely beneficial as outsourcing increases flexibility especially during times of economic downturns.

Supply Chain Coordination Strategies
The oil and gas firms have to combine and integrate decisions within the supply chain made up of customers and suppliers. The company needs to have relationship management as customers and suppliers are crucial to the chain. Creating long term relationships with suppliers is essential. Strategies such as sole sourcing, when a company commits to buy one product or service from one vendor is useful. The vendor is able to share their expertise and knowledge and this can then be leveraged against improved product processes. Costs can often be negotiated to be more beneficial using this strategy. The downside to this is the risk of liability issues.

Relationship management involves two way traffic. The suppliers can benefit from relationship marketing techniques and the suppliers need to work to show off their capabilities to ensure they gain the trust of their customers.

Thursday, 30 October 2014

SCM in the Oil and Gas Industry – Part Four

Vertical integration can lead to far more efficient systems resulting in a stronger supply chain. By managing the supply chain in a cohesive manner, companies can obtain business globalisation, faster customer service, increased customer satisfaction and improved flow of information. The oil and gas businesses that are thriving include those who are forward thinking. They are moving away from supplying just oil or just gas and branching out into different areas such as reservoir development or resource management. The strategy being used has to involve the development of the parameters that are determining the function of the links within the chain and the relationships they have with the suppliers and customers.

Exploration and production functions are often managed as independent areas even though they are interrelated. Vertical integration works to join one of the firms within the supply chain with another one. One business will sell its output or buy an input from the other. It’s effective in the oil and gas industry as the supply chain consists of outputs being the inputs to other firms as it moves up the supply chain.

Benefits of the vertical integration include:
  • Greater levels of control of the quality of the product
  • Greater coordination of the operations along the value chain
  • New technological opportunities
  • Increased profit margins
  • Increased levels of intelligence
The level of vertical integration can be measured by the firm by looking at the benefits and weighing them up against the costs.  If a company decides not to use vertical integration they can look into investing energy and resources into the development of generating long term relationships with their suppliers and customers.

Wednesday, 29 October 2014

SCM in the Oil and Gas Industry – Part Three

The supply chain management in the oil and gas industry involves the configuration, coordination and continued improvement.  Here are some questions that you should address during the configuration process:
  • What products need to be produced
  • What portions should be produced in house and which ones need to be purchased
  • Where should the facilities be located
  • What technologies are available to be adapted
  • How should communications be handled between the suppliers and the customers
  • What level of service do suppliers and the customers expect
The issues surrounding coordination include:
  • How to ensure that the supplier is effective in costs, quality and time
  • Ensuring targets are appropriate for the lead times, capacity and inventory
  • How to monitor the demand and supply
  • How to communicate the results of marketing and performance with suppliers and customers
The supply chain should be continuously monitored and evaluated in order to cope with changes when they arise.

Tuesday, 28 October 2014

SCM in the Oil and Gas Industry – Part Two

The supply chain in the oil and gas industry often takes the form of:
  • Exploration
  • Production
  • Refining
  • Marketing
  • Consumer
These materials flow through these links and lie a series of other operations within each link. For example exploration link of the supply chain operations includes geological operations and production includes drilling and engineering. Refining involves complex operations that feed input into marketing and marketing will include operations such as the retail sales of refined products ending in the consumers.

In the gas and oil industry there are various shipments that vary greatly from one another, from chemicals to steel and even drilling rigs. These products could be moved frequently in huge quantities and sent out to a global market, both onshore and offshore. Operations are repetitive in the exploration and production links and a drilling contractor may need to rely on multiple different services in order to complete the drill of each well.

All of the important operations need to be planned in advance. The ultimate goal of these operations is to ensure that costs are kept to a minimum while achieving excellent customer service is achieved. In the supply chain in the oil and gas industry value is added through the exploration operations, such as seismic analysis. The output of exploration is to serve the production operations who become the customers. Refining is the customer of the production operations and the customer in the refining operations marketing. The ultimate customer of the supply chain is the consumer of the refined products.

There is a weakness found in the supply chain. As company may be focused on their own best interests and work to increase their own profit, opportunities will be missed. Working together to satisfy customer must be the goal of each link for the most effective supply chain management.

Common products that are shipped on a daily basis in the gas and oil industry include the shipments of tubes and other tubular goods. The tubes are ordered via an oil field, manufactured, transported, stored and then prepared before being installed into the well. This is a complex part of the chain to manage as delays can result in downtime and increase operating costs.

Monday, 27 October 2014

SCM in the Oil and Gas Industry – Part One

Supply chain management involves the organisation, coordination and continued improvements of a series of operations. The main goal is to achieve the best level of customer service at the lowest possible cost. It’s a challenge. Customers are important to all organisations and that is why they are the focus. The company will create a supply chain that links the upstream suppliers with the downstream distributors so all customers are served via the chain.

Thanks to technology and improvements made in improving information systems there are more opportunities to coordinate effectively across the most complex supply chains, such as the oil and gas industry.  By integrating the operations management with other functions the whole operations of the business will become involved in the decisions made by the supply chain management, strengthening it.

Common techniques found in the supply chain focus on managing things separately, from the high tech operations to the low tech and the costly operations and labour. Separating these operations is therefore common to produce standard products and services in bigger quantities and have them separated from those that  produce more customised products or services in smaller quantities. Operations need to be working together to have a good mix of customers and products.

Although resources in the oil and gas industries are becoming scarce, the lack of resources is not the cause of the constraints on supply. Reserves, new technologies and the potential of new discoveries are still viable options.

Friday, 24 October 2014

Tips for Supply Chain Segmentation Part Two

Today we are continuing our look at the final five tips for supply chain segmentation.

Implement Total Cost Sourcing Analysis
Modern supply chains are dynamic. There are great fluctuations in cost structures such as the cost of labour and fuel. As a result strategies that were once profitable can quickly turn unprofitable. Therefore supply chain managers need to analyse the cost sourcing strategies on a regular basis.

Implement Differentiated Allocation and Order Promises
Segmented strategies and customer services need to have strong policies in place relating to the allocation and order promising. Create a different approach for each of the customer/product profiles to decide on the best fulfillment point.

Monthly and Weekly Trade Offs in Sales and Operation Planning
S&OP is a process that takes place over each month and has weekly updates. It’s a tactical process that is vital in making a successful segmentation strategy.  The Sales and Operation planning are aligned with the profit and customer service plans and used in the segmentation strategies. It covers what-if scenarios, can identify policy anomalies and provides an opportunity to discuss what’s working and what isn’t, each month.

Implement the Business Optimisation Centre for Knowledge
Knowledge can be gained by using optimisation centres where the segmentation policies are monitored. By using the information gathered businesses can learn to make improvements over time. These centres are also given the task of allocation of workflows relating to the policies. Customer service is maintained and profit strategies can be set up to provide the best outcome for each of the customer/product segmentations.

Automated Policy Management
There is a need to automate the policy management and this responsibility also falls within the Business Optimisation Centre mentioned above.  They also work on the policies relating to fulfillment, transportation, inventory, sourcing, promising and manufacturing.

Thursday, 23 October 2014

Tips for Supply Chain Segmentation Part One

Segmentation is being used so that companies are able to tailor their supply chains and boost their profitability. The segmentations have their own supply chain’s strategy that is targeted towards the customer profile for the segmentation. There are ten practices that can be used to ensure success of the segmented supply chain. We’ll be looking at these tips over the next two days.

Regular Demand and Cost to Serve Analysis
To have a successful segmented supply chain there has to be data driven analysis of the demand and the profits coming from the products and the customers. With this data the service agreements and the policies of the supply chain can be tailored. The aim is to understand the customer and product combinations, and to work out which ones are successful and which ones aren’t as successful.

Implement the Differentiated Demand Policies throughout Core Functions
Demand signals come from the orders, forecasts and the stock. They also come from different channels such as retail and web, as well as different sources. All of the demand signals must be captured across all these different areas and across the entire supply chain. From there the transportation and distribution planning can be designed to align with the segmentation strategies.

Implementation of Differentiated Inventory Policies

Understand the value propositions for the different customer and product intersections to create supply chain segmentation  and determine what inventory levels to carry, where from and in what quantities. This is a move away from the once size fits all inventory policies of the past.

Implementation of the Segmented Customer Replenishment Systems 
Recognise the need to implement the different replenishment programs that relate to the different customers. Base the replenishment systems on the customer, the channels used to support the customer and design systems to benefit them and boost profits.

Introduce Differentiated Supplier Replenishment Programs
These have the same idea as the customer replenishment systems. The programs are based on the suppliers and segmented based on the different types of suppliers.  There may be a need to use a combination of different factories, both owned and outsourced.

Wednesday, 22 October 2014

Multichannel Supply Chain Management

Consumers are increasing their spending and confidence thanks to the improving economy. The increase in spending means retailers are now looking at making investments in tools that will serve the multichannel shoppers.  There are four areas of interest among retailers right now. These are:
  • Supply chain strategies
  • Multichannel fulfillment
  • Strategic sourcing
  • Information technology use
  • Challenges faced by supply chain managers
Fulfillment strategies need to be in place. These could include:

Integrated fulfillment where the retailers use the facilities in place across the various channels but that are segmented during the shipping process

Dedicated fulfillment when the fulfillment centres are categorised by the different sales channels. Each of the centres is then tailored around that channel and the different order profiles used.

Hybrid Fulfillment is when different fulfillment centres are used in combinations that suit the business and their customers.

Shopper’s habits have changed. They are now buying more online and using mobile phones to make their purchases. As a result retailers need to be able to serve their demands and offer a wide amount of choice regarding pick-up and shipping options. By focusing on improving the supply chain retailers will be able to provide an excellent service and experience for all of their customers, regardless of the channel they choose to use.

Tuesday, 21 October 2014

Principles of Supply Chain Management Part Two

Today we are taking a look at the final three of seven principles of supply chain management. If you missed part one you can catch up by reading yesterday’s post.

Strategic sourcing
It’s necessary to have an excellent relationship with suppliers to help reduce the costs of materials and services. By working together with the suppliers and working with the other partners in the chain it’s possible to reduce the costs and increase profits.  Businesses need to have a good grasp on costs including travel, supplies and materials in order to make use of this progressive strategy.

Technology and the supply chain
Managers need to recognise that supply chains operate more efficiently using modern technology such as IT systems. The system needs to be developed so it can cope with day to day transactions across the entire supply chain which will then be used to align the supply and demand based on daily schedules. It must also be able to benefit plans and decision making and strategic analysis.

Adopt performance measures across the channels
Instead of using inward measurements supply chain managers must adopt to taking measurements from the supply chain as a whole. All links in the supply chain should measure the service and their financial metrics. 

Monday, 20 October 2014

Principles of Supply Chain Management Part One

There are seven principles of supply chain management. The main focus of these principles is to balance the demands of the customers with the profitable growth of the business.  An effective supply chain is necessary to achieve this goal. We’re going to take a brief look at each one over the next two days.

Segment Customers Based on Service Needs
Recognising that one size doesn’t fit all is essential as it’s impossible to understand the value customers place on services and products. Segment the customers by their needs and create a wide portfolio of products or services that are each tailored to a specific segment.

Customise logistics networks
To achieve the best results logistics needs to be designed to meet the segment specific needs of the company rather than a single standard.  Create multi-level logistic networks to serve each individual segment. For example, using a distribution centre for one segment and a cross docking quick response centre for any fast moving products.

Market signals and response
Listen to the audience and create a forecast based upon these signals and create a plan based upon these signals.  The supply chain includes multiple links and the forecasts should be created by collaborating with each of these links, using the signals as a whole.

Differentiate the product to the customer
Move away from the tradition of using production goals that are based on the demand and building up stockpiled inventory to cover any errors made in forecasting. More modern strategies involve meeting the needs of the individual customers. Package goods at distribution centres and build products with standard parts for shorter lead times.

Friday, 17 October 2014

The Hub and Spoke Model

The hub and spoke model helps to improve the efficiency of transportation by simplifying the network of routes that are being used. Named after a bicycle wheel, the hub & spoke model has a central hub with a chain of connecting spokes. Each of the spokes is connected to the hub and all of the traffic is routed through the hub with limited direct routes being taken between destinations. By going through the hub, the system is made more efficient.

All of the packages are sorted out at the hub rather than spread out at multiple locations. This reduces the risk of errors being made in the sorting process. Once sorted the freight company is able to organise the best routes for each of the packages to take, considering their destination and lead times.

There are disadvantages found in the hub and spoke system. These include problems at the hub causing delays, such as power cuts or bad weather. The capacity of the hub can also be limiting.

Thursday, 16 October 2014

How to Keep Your Supply Chain Safe?

The FBI has estimated that around $30billion worth of shipments are lost each year. Supply chains have to take security of their cargo seriously as monetary losses are not the only risk to worry about. Goods’ landing in the wrong hands is also a serious threat.

There are many different techniques that are used to secure a supply chain, which include the use of technology, training employees and the use of basic practices are essential. These techniques combined with strict laws and regulations at borders and customs help to reduce the risk of losses and theft.

Here are some of the methods that are being employed to keep supply chains safe:
  • The use of GPS systems and tracking – if shipments go off course the alarms will sound.
  • Truck overrides – if there is suspicious activity indicated by the tracking or after an alert from the driver the truck can be overridden so it stops moving.
  • Increased communication throughout the entire supply chain. Companies working together, sharing data in real time will help to spot issues giving time to react to reduce the losses.
  • Tagging shipments and using coding and scanning.
  • Training employees on how to use technology and to make checks to ensure the drivers are official such as logging the name, equipment numbers and being satisfied that the driver’s identification is legit.

Wednesday, 15 October 2014

What to Considering When Shipping Perishables

When shipping perishables it is essential to consider the following:
  • The shelf life of the produce. How quickly will it begin to perish? What will be the most suitable shipping option to ensure the produce remains in good condition to satisfy the end customers?
  • The regulations of the different countries you’re shipping to. Do you need to acquire special permissions and licenses to ship your goods into the country? What are the regulations surrounding the shipments of perishable goods in each country you’re exporting to?
  • Are your perishables traceable? Countries such as the United States require trace and tracking to ensure food is safe and to reduce the spread of food borne illnesses.
  • Will you be using logistic providers with established customs relationships and have experience dealing with customs. The last thing you want is your perishable produce to be sat idle while it’s cleared.
  • What packaging is best for the produce? Does it need to be temperature controlled? What packing strategies and packing materials are best for the product?
  • What is the best method of shipping that will ensure the produce will arrive in good time?
Don’t use estimations; use the expertise of logistics providers to ensure you have answered all the questions above with workable and traceable strategies.

Tuesday, 14 October 2014

Royale International at Moontrekker 2014

The evening of Friday October 10th saw the arrival of Royale International’s very own Ironmen (Locke, Morson and Murton) at Mui Wo on Lantau island to take place in one of Asia’s toughest endurance races, The Moontrekker. 

This 43km night race over the mountains of Lantau is known to devour participants and break the resolve of even the most hardened trail runners. Why we participated is a question we are still asking ourselves. 

After 3 months of fairly dedicated training we set off at 20:45. The course began with an 18km section around the Chi Ma Wan peninsula followed by a climb up Sunset Peak before reaching Ngong Ping village and then climbing the brutal Lantau Peak, before finishing on the beach at Pui O. 

I’m happy to report that all three of us made it to the finish line in varying degrees of pain/despair and had a celebratory beer at sunrise. 

The race supports the charity Room to Read so any donations are of course welcome. 

Shipping Perishable on Sea Freight or Air Freight?

When shipping perishable goods, time is the most important factor to consider. Goods should arrive at their destination while they still have plenty of shelf life left on them in order for retailers to sell them for the highest price possible. All perishable goods must be shipped to the market as quickly as possible which is why air freight is most often used for these products.

Air cargo is an excellent choice for products that have very short shelf lives. However, the perishable goods that last longer are still commonly sent via sea freight. The use of sea freight is improving as technology advances and more suitable controlled atmosphere containers and techniques are being used to keep products fresh and in good condition. 

While this is seen as an advance in shipping perishables, the sea freight system isn’t trouble free. In a bid to reduce fuel consumption many liners now travel more slowly than before and as a result the perishable markets are switching back to air freight.

It’s important to consider the shelf life of the product when choosing the shipping option. What once took a week by the sea is now taking closer to a fortnight, which might not be a good choice for your produce or your end customers. Due to the time constraints more producers are now choosing air cargo as their preferred method of shipping.

Monday, 13 October 2014

How Small Corporations Avoid Shipping Mistakes

There are five common logistics and shipping mistakes that small business owners frequently make.
  1. Failing to budget correctly
  2. Not working efficiently
  3. Failing to research exporting
  4. Using inaccurate metrics
  5. Using the wrong services
These five mistakes can be avoided as follows:
  • When thinking about shipping costs small businesses uses guess work and estimations. They will avoid budget mistakes if they research the entire cost beforehand.  Find out the exact prices and work them into the budget.
  • Working efficiently doesn’t have to be difficult. Use automation as the automated shipping systems save time and money.
  • International sales can push a small business to new heights but it’s an area that needs to be fully researched. Taxes, licenses, customs and excise, these are areas you need to know about before considering exporting.
  • Uses old metrics is a common mistake, last year’s measurements should not be used for this year. Take into account the current metrics such as the cost of fuel and increased wages for drivers.
  • Many businesses will choose a shipping service based on the price alone, often opting for the cheapest. Don’t make the same mistake; look for the most suitable shipping option based on time, convenience and service for the end consumer.

Friday, 10 October 2014

How Retailers Deal with Returns Logistically

There are many strategies that can be used when it comes to retailers reverse logistics. These include:

  • Outsourcing to 3PL and logistic specialists. Many retailers will not have the in-house capabilities to provide adequate returns services and therefore outsourcing is common and popular. The providers have the technology and processes in place to ensure the returns run smoothly.
  • Avoiding disposal of returns is a holistic perspective that is a new concept in retail. Manufacturers and retailers are collaborating to ideally reuse and redeploy products to reduce losses.
  • Preventing returns can be achieved through the analysis of data to discover what the root causes for the returns are. The problems can then be engineered out of the products to reduce the risk of returns occurring.
Value adding services and data collection are being used by logistics service providers to see if products being produced have a larger than expected return level. The data also allows the logistics providers to find suitable return channels that will work well for the company. This data can also be used in conjunction with data collected through the supply chain and point of sale to locate root causes and issues such as forecasting, damage, rotation, customer satisfaction and then work with manufacturers to solve the problems.

Thursday, 9 October 2014

The Importance of Returns in Retail

There are multiple types of returns found within retail. The return could be anything from an item of clothing that doesn’t fit to an electrical product that is not functioning. With different types of returned goods the retailers need to use processes that will recover the maximum value of the products.

The busiest times of the year are after Christmas, around the first three months of the New Year. Retailers now have to focus on reverse logistics operations to reduce the costs. During this time period around 40 to 60% of returns for the year are made. The average cost of these reverse logistics equal approximately 8% of total sales and this includes the value of the products.

Retailers face many problems when it comes to returns, such as fraud, missing parts, damaged packaging, expired goods and product malfunctions. Then there are the product recalls, over stock and end-of-season goods. The amount of goods that need moving can be vast and it takes time, money, space and adequate training to ensure the returns are dealt with efficiently.

Consumers now expect an excellent returns process. Companies that are able to provide fast and seamless returns are gaining the advantage in the marketplace and in the trust of their customers.

Wednesday, 8 October 2014

Soft Drinks Industry Logistics Process – Part Three

An effective logistics process will increase effectiveness and benefit both the business and the consumers.
  • Develop the demand driven value chain to improve customer satisfaction using technology to link the organisation along with the entire length of the supply chain.
  • Data mining to create predictions of demand.
  • Creating stable system architecture including: suppliers, retailers, scheduling, marketing, database and warehousing.
At the core of the logistics process it is essential to build a supply chain collaboration system. Along the system there are modules that have interfaces that can be used by each of the entities within the chain. The modules used can include:
  • Manufacturing organisation – the raw materials, products, factories etc.
  • Distributor agent to communicate with the warehouse and the supply chain system
  • Supplier
  • Retailers
  • Scheduling
  • Marketing

Tuesday, 7 October 2014

Soft Drinks Industry Logistics Process – Part Two

We looked at some of the logistics problems that are faced within the soft drinks industry yesterday so over the next couple of days, we’ll look at ways modern logistics methods and approaches are used to overcome those issues.
  • Working together – all information and knowledge is shared throughout the entire supply chain. Each process aims to be adding value for the entire group.
  • Linking the inbound and outbound logistics processes to help manufacturing. Forecasts are used to aid accurate procurement activities based on actual demand.
  • Using GIS maps so all links in the supply chain are able to view the map dynamically.
  • Increase the amount of time-sensitive strategies used throughout the business, from manufacturing to commerce.
  • Using a quick response logistic process for faster transportation, reducing lead times throughout all operations and delivering to the market as quickly as possible.
  • Continuous replenishment programs uses data collected from point of sale and the sales forecasts that are shared.
  • Outsourcing to 3PL helps companies to compete especially when their own logistics function is not capable.
  • Cross docking to reduce the amount of handling between receiving and shipping.
  • The use of real time tools using cutting edge technology.
Tomorrow we’ll take a look at how to create an effective logistics process.

Monday, 6 October 2014

Soft Drinks Industry Logistics Process – Part One

The soft drinks industry uses both inbound and outbound logistics in their highly competitive market. Inbound logistics concerns the movement of materials from suppliers and vendors to the production plants or into storage. Outbound logistics is the movement of materials and the storage of the products once they leave the production line to the end user.

There are several problems that the soft drinks logistics have to overcome. These issues are surrounding conventional distribution methods, such as:
  •  Lack of cooperation between all the different links within the supply chain
  • Overproduction
  • Increased inventory levels
  • Increased overheads
  • Lack of shared information
  • Heavy competition
  • Shipping delays
  • Complying with loading schedules
  • Out of date schedules
Over the next couple of days we’ll be looking at how the logistics process within the modern soft drinks industry works to overcome these problems.

Friday, 3 October 2014

What should be Outsourced?

It’s important to think about which of the logistic services should be kept in-house and which would be better off outsourced.  The simplest option is choosing a provider of a single P or speciality service. This type of outsourcing, which includes warehousing for example, has been used for a very long time and contracting speciality services is very common.  A bigger leap is to outsource coordination services as this becomes more of a partnership. The providers must work with the organisation to ensure everything is coordinated even beyond logistics. However, forwarding services are still commonly outsourced.

When outsourcing the coordination and flow management the responsibility of dealing directly with the shopper’s manufacturing or even the marketing is down to the logistics provider. They are able to manage inbound logistics as well as how the information flows from the manufacturers to the retailers so promotion cycles and in store displays can be arranged.

When using only basic PPP services there is a limited risk. This risk increases when outsourcing the coordination services. However, when offered well-run coordination the rewards for the company outweigh the risk as the company benefits from well managed functions.

Thursday, 2 October 2014

What is the Classification of a Logistics Provider?

In a growing industry such as logistics more and more companies are now entering the arena offering their logistic services. All of these providers, both traditional and modern can be classified into one of the following four different types:

  1. Single Value providers The single value providers include warehousemen, forwarders, customs brokers and carriers all of whom offer single dimensions of PPP logistics value.
  2. Multiple Value Providers The multiple value providers provide multiple PPP logistics services along with information management and flow management services.
  3. Coordination Providers Coordination providers are able to provide sets of coordination and flow management services and these cuts down several functions between the company and between companies.
  4. Strategic Transformation Providers The strategic transformation providers provide the customers with tools that allow them to redefine the flow systems in the business.

Wednesday, 1 October 2014

What are the Five ‘P’s’ of Logistics? Part Two

Yesterday we looked at the first three P’s in logistics:
  • Place
  • Period and Pace
  • Pattern
Today’s focus is on the final two of the five, process coordination and Pliancy.  These are coordination logistics that are used along with the operational logistics we discussed yesterday.

Process Coordination
The process coordination is also known as the partnerships’ management. The supply chain consists of many different partnerships including many different operational activities such as manufacturing. Information has to flow between all of the different partnerships all the way through the supply chain, both inbound and outbound.  The management of the cash, information and materials flow is essential so that the activities can be correctly coordinated.

Pliancy adds to the agility of the company and it is this pliant flow that makes the leaders in logistics successful.  By ensuring there is a pliant flow it’s possible to:

  • Bring value to customers by focusing on the entire network of interrelated flows. Demand is met; goods are transported quickly along with cash, ideas and information that can change very quickly based on customer demands.
  • Ensuring the changing requirements of customers is met by focusing on the dynamics of the supply chain.
  • Making all departments of the company work together to organise resources and coordinate people.
Now we have had a brief look into the five P’s of logistics, that are used together to ensure the best possible outcome for businesses and customers alike.