Supply Chain Business Intelligence

This map explains a little about the complexity and all the moving parts associated with a Global Supply Chain. The business intelligence solutions required to help understand this better needs to be matched in sophistication to the complexity that undoubtedly exists.

Our best-in-class, web-based system makes every aspect of transportation management efficient and seamless. Our data entry portal makes short work out of otherwise tedious administrative tasks by pre-configuring the workflow process to match your specific needs. In real time, we’re able to evaluate special equipment requirements, assess safety and environment ratings, insurance coverage, and certifications. We simultaneously optimize inbound and outbound shipments, to ensure we’re helping you make the right decisions and minimize costs at every turn.

Business Value Logistics incorporates industry tools and technology to integrate logistic systems to businesses around the globe. With tools to globally track both inbound and outbound shipments across all modes, we’re able to optimize current routing systems. This technology allows companies to make changes to the central in-house online hub that will be seen throughout the logistics system. And through our mobile apps, employees can monitor the supply chain right on their smartphone or tablet. This eliminates the need to update logistic changes on multiple systems and greatly decreases the risk of confusion from information not syncing.

Give us three months of data, and we will provide you with shipping solutions to save you money. An optimization study will help to ensure that shipping patterns, sizes and configurations are working together to minimize effort, shipping times and costs. We will review current methods and modes, analyze results, and provide recommendations to increase efficiency, reduce cost, and ensure the timely delivery of goods.

Contact Us For More Information

Business Value Logistics . 1517 Hunt Club Blvd . Gallatin, TN 37066

615.928.2300  or email info@bvlintl.com

 

Filed under: Uncategorized

Supply chain execs expect ‘near-shoring’ trend

This report from Southeast Supply Chain News shows some positive direction for JOBS in the US.  Driven largely by increased transportation cost 52% of the executives responding believe “near-shoring” will increase.  The article is excerpted below.

By Chuck Crumbo
Southeast Supply Chain News
ccrumbo@scbiznews.com
Published July 12, 2011

KNOXVILLE, Tenn. — Slightly more than half of business executives participating in a survey of global supply chain trends expect firms that have outsourced manufacturing to begin moving back toward the United States in the next two years.

The survey by World Trade 100 and the University of Tennessee found 52% of 240 executives from various companies think “near-shoring” will increase for industry in general.

J. Paul Dittmann, executive director of the UT Global Supply Chain Institute

But the study also showed 11% of the executives thought outsourcing or off-shoring would decline for their companies over the next two years.

“This no doubt reflects the debate going on in firms regarding the future of outsourcing,” wrote J. Paul Dittmann, executive director of the UT Global Supply Chain Institute, in the July edition of World Trade magazine. “For those who expect near-shoring to increase, higher transportation cost was by far the most common reason cited (61%).

“In addition, the length of a global supply chain resulting in late deliveries also was cited as a significant reason to consider in-sourcing.”

Dittmann said that the survey — the first of its kind by the institute and trade organization should find out if firms were reducing their reliance on global off-shoring and do more near-shoring.

Nearly three-out-of-five respondents cited the low labor costs as the primary reason to continue off-shoring, Dittmann said, and when companies consider increasing their production capacity, 33% explored off-shoring.

This revelation, though, contradicts the growing concerns about the risk in off-shoring or outsourcing, Dittmann said in the article. Just slightly more than half of the executives (52%) said that they analyze and quantify risk in making decisions about outsourcing work. That means, Dittmann said, 48% do not analyze risk.
Most companies consider unit freight costs when making decisions about outsouring, but only 48% weigh inventory costs.

“Inventory of course almost always increases significantly when production is outsourced,” Dittmann said. “And, for most firms, inventory represents a major cash flow challenge as well as a major expense.”

Other survey highlights:

• 53% of executives think about potential disruptions in their supply chain when making a decision about outsourcing.
• 52% of respondents said they are “very or extremely concerned” about quality of outsourcing.
• 43% said their greatest fear is that the economics of the outsourcing decision will change.
• 59% use domestic talent to managing global relationships.
• 49% rely on hiring people who already have that expertise.

Dittmann said the survey’s results answered some questions and raised others, “but hopefully provide much food for thought for firms managing a global supply chain.”

Filed under: Business Intelligence, Business Process Improvement, Supply Chain, Transportation Management, Uncategorized, Business Intelligence, Logistics, Supply Chain

Business Intelligence Predicting Fluctuations in Transportation Cost

Historical traffic mapping is used to show trends in truck load traffic.  This map is a historical snapshot of transportation requirements into and out of defined zones.  The result is an informed forecast of transportation cost.  You might say “But I have contract rates in place to cover these cost”; however in most cases rates do not guarantee truck capacity.  The next step in your logistics process is to “Expedite your shipment” because there is no equipment available in your market at the time you may need it.  You have just UN intentionally entered the “Zone of Volatility”. The result is that your forecasted cost now enters an exception mode, and your transportation cost changes from your control by contract to being controlled by the market capacity.

 The impact of this type of business intelligence data is being felt in many areas of supply chain decisioning including vendor selection, distribution and manufacturing locations. Global Supply Chain Management in business planning is taking on a strategic role. Use of BI systems including TMS systems and involvement of transportation and logistics in strategic planning impact profitability in long range planning.

One possible result is the use of a new emerging business concept of asset sharing. The goal of every business is to optimize the utilization of every asset.  Lisa Gansky calls it “The Mesh” in her book by the same name. If you look into companies that are “Non-Asset Based” or Asset Sharing business models you will quickly find high profitability and sustainable profitability in the best in class of this group.  Landstar Systems ( lstr )  and C H Robinson ( chrw ) would be examples of this group.  Adaptation of the non-asset based model or asset sharing seem to be the nimble business models that the current business environment is calling for.

Filed under: Business Intelligence, Business Process Improvement, Supply Chain, Transportation Management, Asset Sharing, Business Intelligence, Non-Asset, Supply Chain

The Zone of Volitility in Supply Chain

The Zone of volatility.  The high cost highly unpredictable zone where things did not go exactly as planned.  This pattern is common in multiple legs of many supply chains.  It could start with a vendor inventory problem, or a sudden surge in sales creating a vacuum in the supply chain.  The best defence for managing in this high cost zone is end to end Business Intelligence.  When you have instant visibility from supplier to customer delivery you have the best chance to drive out these gaps in your supply chain. 

There is an entire industry evolving to connect vendors to manufacturing to customers.  For it to become successful and truly benefit all, including the consumer, we must open the doors to process visibility.  Here is where the difficulty lies…It takes collaboration and open exchange of information to accomplish this true efficient supply chain.  Through this open collaboration we can provide customers independent logistics and transportation support through Internet-based technologies, helping to reduce transportation costs and improve overall supply chain efficiency through real-time shipment optimization and carrier visibility.

Best-In-Class Shipment Lifecycle Capability

Through “outside the plant walls” collaboration the processes and potential profitability of every stakeholder are enhanced.  The process starts with Procurement Collaboration and Optimization, however before that step can be effectively we must make the leap of true partnering with your vendors.  The processes and learned lessons are difficult to move efficiently from supplier to supplier.  The resounding learning here is that supplier selection may be more about efficiency and processes than initial price.

Filed under: Business Intelligence, Business Process Improvement, Supply Chain, Transportation Management, Uncategorized, Business Intelligence, Logistics, Supply Chain