ProcurementAlert.com » Supply chain reaction: What’s ahead in 2009

Supply chain reaction: What’s ahead in 2009

February 4, 2009 by Charlie Walker
Posted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends, Supply chain efficiency

Supply chain operations took it on the chain in 2008, between transportation costs, shifting customer needs and unsteady suppliers.

But it’s not all bad news for 2009: By shining a light on these problems, they catapult to the front burner for many companies.

If there was one theme to tackling these problems, it would better cooperation between the players involved.

A recent study showed that only 11% of companies said their supply chain planning and operations were highly integrated with the rest of company functions.

But the same study also points out that 92% of the same companies are planning to implement better planning and execution of supply chain strategies over the next three years.

Three strategies are cited in bringing that about:

  • better supply chain visibility
  • linking existing supply chain software systems with internal and external customers, and
  • improving collaboration with suppliers and customers.

The other area of focus in improving supply chain operations is transportation.

There are three main aspects to transportation that supply chain operators hope that implementing will lead to better integration with all customers — inside and outside of the company.

  • Squeezing more pallets, cartons or product onto every truck leaving the docks. This can be achieved with optimization technology or good old elbow grease and common sense.
  • Dock door scheduling systems, which puts the function in the hands of the people who have most at stake. Better scheduling of supplier deliveries is a win-win.
  • Trying new transportation strategies, like switching from truck freight to intermodal transportation. Another strategy: setting up a consolidation center for shipping when distance is involved, rather than have all shipment originate from home base.
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