About SCM and other abbreviations
I’ve been thinking. In SCM we do our best to keep FCA high to ensure a good CSL, but sometimes the 3PL screws up the delivery. Everything is fine in the EDI with the WMS, but then something goes wrong in the TMS. And then even the best ERP like SAP APO or other APS tools don’t help.
Don’t get me wrong, 3PLs like UPS or DPD are usually good at adhering to the SLAs and dealing with FTLs of ADR while complying with FAA regulations, especially DHL. “Of course”, you might say, “because they are ISO-certified”. But sometimes, the ETA in the ASN of a DDP delivery is unreliable. In the next RFQ maybe it would be better to ask for CPT or even go for a 4PL.
If the MPS defined that parts of production need to be outsourced to a 3PM, then EXW is not a good idea. That’s the kind of thing which should be mentioned in the CRM.
Sorry, I was drifting. Back to SCM. I discovered once in an ABC that most products even in a CDC are better off as MTO. Of course, the MPS can dictate a high MOQ in that case. For NPIs in the MTS range it’s obvious that the ATP stock is key, especially when selling B2B (just think of the demands of OEMs like BMW). Often, they want JIT deliveries for their RPI, ideally enforced by VMI as a buffer. Luckily not a topic for B2C where the concern is more about the BBD of FGI at the POS.
But let’s not forget to focus on internal processes. High WIP often comes from low OEE. Sometimes, the BOM is not properly maintained. And as long as TQM is not pushed by the BPO (who ideally has a PMI certificate), WMS issues might harm ROI and cause endless discussion at S&OP meetings. The issues might even harm people, but that’s a story for the SHE manager.
So what I really want to say is: instead of having to write CYA e-mails all the time, why not learn how to set up a QMS? The quality department can find out if a COA or COO are incorrect and the people there take corrective actions to get the number of cases down to PPM. Let’s take an example from them and perform regular RCAs to analyze which SKUs are frequently OOS and what can be done about it. It will certainly improve the KPIs.
And yes, of course this can also be done when you’re WFH using a VPN.
Did I forget anything?
PS: In case you’re wondering if you can be considered a supply chain expert… if you understood what I was writing about, then let me assure you: YOU ARE!
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About the author
I am a Career Coach who supports supply chain professionals to get ready for their first leadership role.
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