THE SUPPLY CHAIN BLOG
5 Supply Chain Trends for 2021
This past year has created many new challenges for everyone, causing consumers and companies to adapt. We expect some of the supply chain changes to be temporary but that many of them will have a lasting impact on the supply chain industry going forward. Below, we discuss some of the trends that we expect to see in 2021.
Supply Chain in COVID-19: The Option of Nearshoring
Our CEO, Håkan Andersson, was recently featured on a podcast with industry expert, Bob Hess, about the potential for #nearshoring as a result of the pandemic. Listen here: https://nkf.re/3dhqU0
Why an Oversized Inventory Doesn’t Solve Service Level Issues
We are right now working with a great company, who supplies the retail and construction industry. They are totally devoted to quality and would go to any length to ensure that the product is delivered in perfect condition at the right time. With an annual growth of 30 – 40 % it is not surprising that all processes and support systems aren’t fully developed and rules of thumb are used instead. To make sure that an order always can be delivered on time the rule for inventory is 6 months sales in stock. Looking at statistics we saw that the service level was 95%, which is right on the average level in the US industry. Looking at the reasons behind the counter-intuitive “non-100%” service level provided some lessons.
Logistics as an Investment Guide
Can companies’ activities in logistics be a good indicator of investment opportunities? Many investors are looking for companies that that grow very fast while being profitable. Fast track firms selling physical products likely outgrow their existing distribution network and need to expand to satisfy the demand for their products.
Black Friday’s Results and Its Logistics Impact
Another year of holiday shopping madness is nearly in the books, and the Thanksgiving and Black Friday results are out. What happened and what does it mean for your business? Well, not much changed and holiday shopping appears to be following the same trend as it has been. From both personal experience at the Matt at Millenia in Florida and from reports across the country, in-person shopping is decreasing and online shopping is increasing significantly.
3 Ways to Increase Sustainability and Profit through Smart Logistics
Nearly all of the150 largest companies in the world have a Chief Sustainability Officer at VP level or higher. Corporate Social Responsibility (CSR) is a major talking point in many annual reports and conferences. This is all good and proper, but many of us have a feeling that it is simply window dressing we are witnessing, and not a lot of concrete action.
Logistics as The New Storefront
Logistics is the new storefront, meaning you can make money for your customers through logistics. You want to be the one who is talking to the customer, because that makes the difference. You want to be in charge of the inventory management because the availability is the key in the new world here of Logistics as the Game Changer!
Growth in E-commerce Distribution Centers
Global online B2C retail sales are increasing. This trend is spurring the need to locate e-commerce DCs closer to customers. Local depots for urban delivery are now needed more than ever. To be successful with e-commerce you need new logistics models which can provide rapid order fulfillment and returns processing.