What do you do if your supply chain operations are not running efficiently?

The first step is the ensure the current baseline performance is measured as it's difficult to outline an improvement target and track towards it if a good means of measuring current performance is unavailable. Important areas to measure across your supply chain operations include, On-time and full (OTIF) performance, DC inbound and outbound UPMH performance and performance to industry standards. Transportation lead times versus carrier quoted lead times. Transport and Warehouse handling Cost per unit, case, pallet metrics. Once baseline metrics are in place, root-causing areas of concern will reveal opportunities for improvement that can now be tracked towards targets.

Supply chains have always been vulnerable to disruption. Although rightly called the ‘plumbing of global commerce,’ supply chains have typically received little attention. Unprecedented events such as the COVID-19 pandemic and the ongoing conflict in Ukraine have again put the spotlight on the vulnerabilities of global supply chains.

The initial step in supply chain troubleshooting is assessing operations to identify bottlenecks and inefficiencies across procurement, production, distribution, and delivery stages. Pinpointing problematic areas enables targeted improvements to ensure a smooth flow of goods and information from suppliers to customers.

First of all if the SCMops are not running efficiently-ask yourself a hard question-Are we focused always on challenges basis recency or thinking long term resilience? More often then not, the answer will be a a bias towards recency. For example, for expedited dispatches due to month end volume, we will use premium freight to logistics partners, the cycle repeats again every month (recency bias), but we will either defer or won't take a substantiative action to understand the pattern and look at streamlining demand forecasts and the robust S&OP coupled with contract structure modelling to suit our skewness. This simple change of attitude towards SCM challenges can help us become progressively efficient.

When supply chain operations face inefficiencies, it's crucial to assess the issues thoroughly. This involves identifying problem areas, conducting root cause analysis, gathering insights from stakeholders, analyzing data, prioritizing issues, developing solutions, implementing changes, and monitoring progress. By systematically assessing the issues, organizations can effectively identify and address inefficiencies, ultimately improving supply chain performance and business outcomes.

Explore tools like ERP (Enterprise Resource Planning), SCM (Supply Chain Management), and WMS (Warehouse Management Systems). These platforms help automate processes, enhance visibility, and optimise resource allocation. IoT Sensors and Smart Algorithms: Implementing Internet of Things (IoT) sensors allows real-time monitoring of inventory, shipments, and equipment. Smart algorithms can analyse data patterns, predict demand fluctuations, and recommend optimal routes for transportation. By incorporating these technological advancements, you can further enhance supply chain efficiency and stay competitive in the market.

Analyzing data is crucial for addressing inefficiencies in supply chain operations. It involves collecting, processing, and organizing relevant data, utilizing statistical methods and analytics tools to identify patterns and trends, pinpointing root causes of inefficiencies, evaluating performance metrics, predicting future demand, and making data-driven decisions to optimize processes and drive continuous improvement. Effective data analysis enables organizations to gain valuable insights, improve efficiency, and enhance overall supply chain performance.

It involves scrutinizing data on inventory, orders, and transportation to identify inefficiencies or bottlenecks. Through insightful analysis, logistics can pinpoint areas needing improvement and devise targeted strategies to optimize workflows. This data-driven approach enhances decision-making, streamlines processes, and fosters continuous improvement, ensuring smoother operations and timely deliveries.

Leveraging data analytics has been a cornerstone of my approach to refining logistics operations. Drawing from the rich dataset at Omniva, we utilized advanced analytics to dissect our operational performance. This involved a deep dive into key performance indicators, juxtaposed against customer satisfaction metrics and delivery efficiency. The outcome often highlighted specific areas needing recalibration — from routing inefficiencies to parcel locker allocations. This methodical analysis, underpinned by technology, allowed us to identify corrective measures with precision, a strategy informed by our belief in the transformative power of automation and consolidation.

Analyzing data is essential for gaining insights into supply chain inefficiencies. By examining performance metrics and logistics data, businesses can identify root causes and make informed decisions on where to focus improvement efforts. This data-driven approach enables targeted adjustments to strategies and processes, leading to enhanced efficiency and cost-effectiveness within the supply chain.

Creating a culture of collaboration within your team can significantly improve supply chain efficiency. Encourage cross-functional teamwork where different departments work together towards common goals. By breaking down silos and promoting communication across departments, you can streamline processes and identify areas for improvement more effectively. Additionally, consider organising regular meetings or brainstorming sessions to gather insights from various team members and foster a collaborative environment where everyone feels valued and motivated to contribute.

Engaging the team is vital when addressing inefficiencies in supply chain operations. This involves fostering open communication, encouraging collaboration, empowering team members, providing training and development, recognizing contributions, establishing feedback mechanisms, and offering support and guidance throughout the improvement process. By involving the team in identifying and resolving inefficiencies, organizations can leverage their collective expertise and motivation to drive meaningful improvements in supply chain performance.

To address inefficiencies in supply chain operations, start by comprehensively understanding the lead times of each process Engage stakeholders to gain insights into where inefficiencies lie and what improvements are needed. Establish Key Performance Indicators (KPIs) to set measurable targets for improvement. Implement projects aimed at streamlining processes and integrating systems with suppliers. Identify the root causes of inefficiencies and foster a culture of continuous improvement. Encourage employees to contribute ideas for enhancing efficiency and maintaining transparent communication. Provide regular training to enhance the skills and knowledge of your teams. Utilize data from each department to identify areas for improvement.

Employees are like the core of any process and supply chain is something that involves a good handful of team members and honing the right skills so understanding the team's view is very important and this can be obtained through regular engagement activates like small discussions on daily basis , TBT in warehouses. It is important to understand that it is a two way process were we give the importance to share the ideas and work on the same with team engagement.

By engaging with the team, logistics can leverage collective expertise and insights to devise effective solutions. This collaborative approach boosts morale, fosters ownership, and cultivates a culture of accountability, facilitating smoother operations and overcoming challenges effectively, ensuring sustained success in supply chain management.

Embracing technology is essential for staying competitive and driving efficiency gains. Implementing advanced software solutions like ERP or TMS can revolutionize our operations by automating processes, improving visibility, and enabling data-driven decision-making. For instance, integrating an ERP system can streamline inventory management and order processing, reducing errors and enhancing overall efficiency. Embracing technology empowers us to adapt to evolving market demands and optimize our supply chain for maximum performance.

Implementing technology is essential for addressing inefficiencies in supply chain operations. This involves assessing needs, selecting appropriate solutions, integrating systems, providing training, fostering continuous improvement, utilizing data insights, implementing collaboration platforms, and leveraging automation. By effectively implementing technology, organizations can streamline processes, improve visibility, and enhance operational efficiency within the supply chain.

Take into action the technology enables automation, data analysis, and real-time tracking, improving efficiency and visibility. By leveraging technology, logistics can streamline processes, optimize routes, and anticipate disruptions. This proactive approach enhances decision-making, reduces errors, and fosters innovation, ensuring smoother operations and timely deliveries.

The implementation of technology, specifically AI and robotics, has been transformative in my logistics career. At Omniva, we pioneered the use of parcel lockers, a testament to our commitment to innovation. This technology not only streamlined last-mile delivery but also significantly enhanced customer satisfaction. Additionally, our foray into AI for dynamic rerouting and capacity planning exemplifies how technological advancements can address specific operational inefficiencies. These initiatives were not merely about adopting new technologies but about strategically deploying them to meet our consolidation and automation objectives.

The logistics landscape is evolving, and with it, the a need for consolidation, particularly in last-mile delivery. The differentiation between home and out-of-home deliveries, such as parcel lockers, offers a glimpse into the future of logistics efficiency. In my tenure, parcel lockers stood out for their ability to streamline operations. Looking forward, leveraging such networks can significantly reduce costs and environmental impact. Consider how consolidation strategies can fit into your operation, remembering that efficiency gains not only bolster your bottom line but also enhance customer satisfaction.

Key Performance Indicators (KPI) are at the center of supply chain operations. To make them more effective, they need to be automated and connected to a strong knowledge management software. By providing a visual dashboard that is updated in real-time with live feed, your logistics staff will be more engaged and motivated to match and exceed expectations.

Striving for process perfection is vital in resolving underperforming supply chain operations. It involves identifying inefficiencies and implementing improvements to optimize workflows. By refining processes, logistics can enhance accuracy, reduce delays, and minimize costs. This meticulous approach fosters consistency, reliability, and customer satisfaction, ensuring smoother operations and mitigating risks.

Process optimization in logistics, from my viewpoint, necessitates a blend of technology and strategic foresight. Drawing on my experience, implementing a parcel locker network was a strategic move towards optimizing last-mile delivery. This initiative, rooted in our insights into automation and consolidation megatrends, not only improved efficiency but also elevated the customer experience. Furthermore, optimizing delivery routes using AI-driven dynamic rerouting tools exemplified how technology could be harnessed to refine operational processes, ensuring that our strategy remained in lockstep with evolving market demands.

Reflecting on my journey, the introduction of parcel lockers was not just an operational decision; it was a commitment to customer choice and convenience. As the sector grows, driven by automation and consolidation, never lose sight of the end-user. The future lies in offering diverse delivery options—each with its own pricing model to provide value to different customer segments. This approach will not only secure a competitive advantage but also foster a loyal customer base. In essence, innovation should not only aim at operational efficiency but also at enriching the customer experience.

The logistics landscape is ever-evolving, and staying ahead requires a proactive stance on innovation and strategic alignment. In my journey, the key to navigating rising costs and market complexities was a steadfast focus on our core thesis: the critical roles of automation and consolidation in shaping the future of logistics. This perspective informed our every decision, from technology adoption to process reengineering. Moreover, embracing a customer-centric approach, where service offerings are continuously aligned with market expectations, has been instrumental. In essence, the future of logistics hinges on our ability to anticipate changes and adapt swiftly, leveraging technology as both a catalyst and enabler.