THE SUPPLY CHAIN BLOG
Ensuring a Successful Supply Chain Network Optimization Study
We previously wrote about some of the reasons and incentives for why a company would want to execute a supply chain network optimization study. Now, we would like to discuss some of the key contributing factors to consider when completing the supply chain network optimization study that will ensure both realistic and usable results.
What are the Benefits When Completing a Supply Chain Network Study?
It does not matter if a company is business-to-consumer (B2C), business-to-business (B2B) or direct-to-consumer (DTC), if the company distributes goods, then the supply chain will play a vital role. That being said, it is important for companies to be active when reviewing their supply chain network to ensure that it is set up optimally to support the business. We find that supply chain costs usually account for over 6-10% of sales, which can add up to a lot of money for large companies. Likewise, it is just as important for smaller companies to prioritize their supply chain strategy, as they may quickly and consistently outgrow or shift their current supply chain networks.
Circular Supply Chains - A Step Towards Sustainability
Building upon last week, we are taking a deeper dive into the sustainability movement of circular (a.k.a closed-loop) supply chain practices. The world is moving on from the 'cradle-to-grave' supply chain practice of product manufactured, distributed, used and thrown out. Circular supply chains can be described as the combination of standard logistics and reverse logistics in order to create a circular logistical lifecycle. Products in the reverse logistics flow can be redistributed, repaired for continued use, remanufactured in case of defects, or recycled into parts and materials that have been carefully selected for this purpose.
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.
Blockchain in Logistics: How it Started and How It's Going
Blockchain’s origin is rooted in the release of the whitepaper written under the name Satoshi Nakamoto explaining the foundation of what we know as today, Bitcoin. Bitcoin offered an avenue to worry-free digital transactions due to transparency and decentralization of the data. This ensured that information could not be altered and prompted the crypto-currency boom. The core-principles of blockchain and success of Bitcoin started a wave of curiosity into other possible applications, thus the development of the technology began to arise. One of these applications was supply chain.
Supply Chain Network Optimization – How to Do it Right
The time is right to re-align your Supply Chain Strategy, for many reasons including:
Logistics and fulfillment are the new storefronts and sales tools
The explosion of direct-to-consumer business forces all companies to have an omnichannel strategy.
The sourcing landscape is rapidly changing with more near-sourcing and risk minimizing.
Sustainability awareness is increasingly unavoidable - and transportation is a big piece.