I was recently asked by a large food manufacturer to help them develop a formal logistics organization. At the kickoff meeting the participants spent the... Read more.
On the left (in green) is the ratio of the standard deviation of the mean to the average of the mean. The higher that percentage,... Read more.
The third set of RightChain™ decisions work in the area of supply. Supply is the process of producing or acquiring inventory sufficient to meet the... Read more.
Just as suppliers need visibility into our inventory levels to execute vendor managed inventory programs, we need visibility into our supply partner’s inventory, production schedule,... Read more.
Just like there is an optimal production schedule for a factory that minimizes the total production and inventory carrying cost given labor and material availability;... Read more.
We also help make the sourcing and inventory connection with sourcing optimizations that take into consideration the full set of parameters and buying terms that... Read more.
The objective in supply base rationalization and consolidation is to minimize the number of suppliers while satisfying all the quality and cost objectives of the... Read more.
The first sourcing decision for each item is whether to make it or buy it. The decision should take into account long-term business strategy, our own... Read more.
An important follow-up to the creation of supplier certification criteria is the design of rewards and penalties for extraordinary performance or non-conformance to established criteria. Typical... Read more.
Based on performance to established targets and inbound logistics volumes, suppliers should be classified into three or four segments. One large retailer classifies suppliers as red... Read more.
Four helpful indicators of supply quality are: perfect purchase order percentage (PPOP), supplier fill rate (SFR), supplier satisfaction index (SSI), and matching rate of receipts and... Read more.
Purchase Order Cost The cost per purchase order is a critical element in supply planning, effecting the size of order quantities and related inventories. The... Read more.