You're balancing cost-effectiveness and logistics quality. How do you make the right trade-offs?

Dise?ar un modelo logístico de abastecimento en función del precio del producto y su impacto en el tránsito tomando en cuenta el capital de trabajo inmovilizado.

Trade off are always a short term strategy and dangerous especially dealing with critical products and customers Logistics operations should be cost effective without compromise on any aspects of delivery

Consider Long-Term Impact: When balancing cost-effectiveness and logistics quality, look beyond immediate savings. Evaluate the long-term impact of cost-cutting measures, such as potential increases in maintenance costs or reduced customer satisfaction. Invest in quality where it contributes to durability and reliability, reducing the need for frequent repairs or replacements. Strategic investment in key areas can lead to sustained cost efficiency and stronger customer loyalty over time.

It depends on the weight of the logistics cost compared to the total cost of the product and the level of service that the customer expects. There is no point in hiring expensive logistics if fast or personalized delivery is not necessary (similar to regular mail or airmail). We will only know when the customer is willing to pay extra for it. If not, we are burning money. Many companies give away quality of service that is not necessary and that customers do not demand when they buy low-cost products in China.

- Understanding requirements through the analysis of customer demands, service levels, and delivery timelines taking into consideration the engagement of stakeholders to gather insights on their needs and expectations - Market research through analysing market trends and competitor offerings to determine where the organization's logistics can excel while staying cost effective

It is very important to know the real cost of the entire logistics chain, direct costs and indirect costs of service. Not all companies really know this. A flow analysis of the global process from the reception of raw materials to the delivery of the final product to the customer can reveal unnecessary movements that add cost to the process. The cost of the warehouse and shipping personnel who load the trucks is a fixed cost that is often wasted by covering 24 hours of shipping when the trucks arrive in an uncontrolled manner. Reducing the schedule and establishing time slots with appointment reservations for the trucks saves costs and reduces queues.

- Identifying costs through Breaking down costs into fixed and variable components, including transportation, warehousing, handling, and administrative expenses. - Cost benefit analysis, through evaluating potential logistics solutions based on their total cost Vs the value they provide, taking into consideration whether faster shipping justifies higher costs - Benchmarking, through Compare the costs with industry standards to identify areas for improvement without compromising quality

- Establishing KPIs, through defining (KPIs) for logistics, such as on-time delivery rates, order accuracy, and customer satisfaction - Regular monitoring, through using data analytics to track performance against these metrics continuously, allowing for timely interventions - Customer feedback, through Incorporating customer feedback mechanisms to gauge perceived quality and adjust logistics processes accordingly

- Identifying Risks, through risk assessment to identify potential issues in the supply chain, such as disruptions, delays, and quality lapses. - Mitigation strategies, through developing contingency plans and alternative sourcing strategies to minimize impact from identified risks. - Insurance and compliance, through ensuring adequate insurance coverage for logistics operations and comply with regulations to avoid legal and financial penalties

By working with trusted logistics providers, you can find ways to work together to reduce costs and improve the level of service. For example, in my case, we incorporated a flow of loading and unloading of raw materials (inbound) and finished product (outbound) for trucks. Working in "round-trip" mode, we managed to maximize the use of the truck, which is always loaded (good for the carrier) and consequently the reduction of logistics costs (good for the manufacturer).

- Supplier evaluation, through assessing suppliers not just on price but on their ability to meet quality standards and reliability. - Partnerships, through fostering long term relationships with suppliers that prioritize quality and efficiency, potentially leading to better pricing. - Diversification, Through diversifying supplier base to mitigate risks and enhance flexibility in logistics without solely focusing on cost.

Según mi experiencia en diferentes posiciones de la cadena de valor en el sector TI actual, el abastecimiento estratégico va más allá de negociar precios. Es esencial seleccionar proveedores especializados en instalación, configuración y puesta en marcha, asegurando tiempos óptimos y calidad en la implementación. Cumplir con los plazos es crucial, ya que la cadena de valor en TI no siempre es equitativa, y ahorrar en costos iniciales puede resultar en demoras o calidad inferior, comprometiendo el proyecto. Es vital considerar contratos a largo plazo y opciones financieras equitativas que ofrezcan flexibilidad y capacidad de respuesta, garantizando implementaciones eficientes y alineadas con los objetivos estratégicos de la empresa.

Some take aways based on my experience implementing CI culture in big companies: 1. Find a leader with intrinsic motivation to driver and implement the program 2. Start small. Don’t overthink. 3. Set target to all levels. All employees should have a clear target in their spam of control. 4. Performance control should trigger actions to close the gap. 5. Define standards to sustain the improvements.