Supply Chain Blog

Improve Manufacturing Performance with Total Productive Maintenance

Posted by Dave Jordan on Thu, Aug 23, 2018

When I first came across Total Productive Maintenance (TPM) I was sceptical of yet another ”blue sky” approach to pursuing manufacturing excellence. Surely, this would soon be replaced by the next set of buzz-word initials dreamed up by sharp-suited consultants. But no; I saw the light and now I’m a firm believer in this technique that originated in Japan.

If you have a factory that is running below par in terms of efficiency, output, reliability or cost etc, then TPM could be the ideal tool to achieve a sustainable turnaround. Companies do not like under-performing factories and there is usually somewhere else they could make their products better, faster or cheaper. So, if your factory is under threat of closure you might consider following the TPM principles.

TPM is not rocket science but it requires just as much senior management buy-in and patience as an S&OP process demands. There are multiples levels of TPM success but even the basics will require a significant and sustainable change in behaviour. Kick off with the Kaizen 5S approach which is remarkably simple stuff.

Total Productive MaintenanceKaizen 5S is based on the translation of 5 Japanese words relating to systematic improvement and maintenance of a clean, efficient, well organised operation.

  1. Sort – Sort out what you really need – I mean really need! Throw out anything that has been hanging around for a few years “just in case”. Check out your spare parts store and see what items are held for equipment you no longer own!
  2. Straighten – Have you ever mislaid your car keys? This system creates a dedicated space for every tool or spare part located near to where it is needed and you can clearly see when it is missing!
  3. Scrub – Clean the machines and the production area thoroughly. Dust can affect quality, spills can be hazardous and well maintained equipment lasts longer.
  4. Standardise - If you use identical working practices for maintenance and cleaning your employees will become highly proficient. Standardisation provides you with a flexible workforce that can be deployed where needed and without a training period.
  5. Sustain – From the factory manager to the tea boy you must keep the faith and sustain every initiative. This is very difficult at first but you have to grit your teeth and keep going.

Of course, this is merely a snap-shot of what TPM entails but it shows you the basic elements you need to start the journey. As mentioned, the first tentative steps can be painful but if you stay the course the benefits are immense in efficiency and employee satisfaction. The principles apply equally to logistic centres, offices; essentially everywhere people work.

Oh, but don’t try this at home or a divorce is highly probable, believe me!

Image credit: corbindavenport.blogspot.co.uk

Tags: FMCG, Dave Jordan, Performance Improvement, Manufacturing Footprint, Supply Chain, S&OP, Cost Reduction

Supply Chain, Supply Chain: What’s That All About?

Posted by Dave Jordan on Wed, Aug 22, 2018

I started my career as an R&D type who helped bring new FMCG products to the market. Nobody really knew how a product made the transition from bench top and pilot plant testing to the supermarket shelves. Somebody must have been involved somewhere but this was hardly a cohesive team with job descriptions let alone aligned roles and responsibilities. Even then “somebody” was not part of the project team so with hindsight it was inevitable delays and mistakes would occur. “Somebody” was to blame every time!

Supply Chain Small resized 600Supply Chain departments started to spring up in FMCG and Pharma companies as formal organisations around ERP deployment. Recruits were taken from other departments; commercial, manufacturing, sales and even R&D! Very few had any real understanding of Supply Chain requirements and they certainly did not have any formal qualifications or training. Qualifications and training are now widely available through many organisations such as CIPM and the Supply Chain Council.

I am not sure who coined the term Supply Chain though, do you know? I have taken a few Supply Chain definitions from the internet and started with the individual word basics from an Oxford English Dictionary:

Supply noun

1. An amount of something that is available for use when needed.

2. the action of supplying something.

Chain noun

1. A row of metal rings fastened together.

2. a connected series of things e.g. a chain of events.

Seems reasonable but what about a more technical definition taken from the Council of Supply Chain Management Professionals (CSCMP)?

 “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology.”

Wikipedia chips in with “A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.

Who can resist asking the people at the aptly named Supplychaindefinitions.com?

“… the movement of materials as they flow from their source to the end customer. Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning, supply planning and Supply Chain management.  It is made up of the people, activities, information and resources involved in moving a product from its supplier to customer.

Although this Supply Chain definition sounds very simple, effective management of a Supply Chain can be a real challenge.”

Investopedia.com offers up this definition which I particularly like as it highlights Supply Chain as a “crucial process”.

“The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company. Quite often, many people confuse the term logistics with supply chain. In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers.”

Rightly, Supply Chain is now part of every serious company aiming to put a product in front of consumers whether this is FMCG, Pharma, Telecoms etc. However, is it seen as “crucial”? Even today I feel some companies still underestimate the value a “storming” Supply Chain team brings. In some companies Supply Chain does not have a discrete representative at the “top table” and if you delegate Supply Chain management to your Sales Director then you should reconsider that decision and/or pray. One way of ensuring sustainable sales uplift is NOT to report the Supply Chain community into another non-specific, non-skilled company director.
 

Tags: FMCG, Dave Jordan, Pharma, Supply Chain, Forecasting & Demand Planning

Digital Supply Chain: This is the way, its Analytics!

Posted by Dave Jordan on Thu, Aug 16, 2018

Rather a lot of blogging going on around the area of Digital Supply Chain and Analytics at present. Amongst all the serious stuff I thought it about time we took a well-earned break and enjoyed a bit of Supply Chain Comic Relief.

SUPPLY_CHAIN_ANALYTICS_COMIC_RELIEF

A very catchy tune and a very topical subject.

This the way, its Analytics (Is this the way to Amarillo)

When results are falling
And your boss is always calling
How I long to see why
Business success passes us by.
All our monthly measures continue to be flat
What I really need to know is where our supply chain’s at.

This is it, its analytics
See your chain and everything in it
See the power of analytics
It’s SupplyVue, it waits for you.
This is it, its analytics
Seems like we are wasting ages
Pouring over endless data
And SupplyVue, it waits for you.

Sha la la la la la la la
Sha la la la la la la la
Sha la la la la la la la
And SupplyVue it waits for you.

Supply Vue takes your data
Turns it into something much greater
Providing information
To back up the decisions your taking.

Look beyond the numbers
No more guessing again
Opportunities are all tested
Through future modellin’.

This is it, its analytics

Provides clarity on the business

Showing the way to success
Its SupplyVue, it waits for you.

This is it it’s analytics
I now see my chain and everything in it
The futures bright with this
And SupplyVue, it waits for you.

Sha la la la la la la la
Sha la la la la la la la
Sha la la la la la la la
And SupplyVue it waits for you.

Sha la la la la la la la

Sha la la la la la la la
Sha la la la la la la la
And SupplyVue it waits for you.

How long will you have that tune in your head? Enjoy.

Image courtesy of rakratchada torsap at freedigitalphotos.net

Tags: Supply Chain Analytics, Humour, Dave Jordan, Supply Chain

FMCG cost savings versus sales & marketing budgets!

Posted by Dave Jordan on Mon, Aug 13, 2018

There is your dilemma. You need to save cash towards an expensive year-end holiday but you really do not know the best place from where to take the money. Do you take it from your day to day current account which is already set up to pay the routine monthly bills and invoices? Do you take funds out of an investment account that has not yet actually matured?

In effect, the money in the current account is already committed and the expected appreciation in the investment account is still to be delivered which puts me on my soap box for today’s topic.

When times are tough and cost savings are required why do the senior bods always look to Supply Chain in the first instance? Unlike those colleagues with a fondness for endless agency lunches there is very little discretionary spend to be found in the vast majority of Supply Chain operations. OK, there may be some team building budget, business travel and a small entertainment allowance but where else can you save money?

There is not a lot you can do to have an impact in the short term. What could you do?

1. Negotiate better RM/PM prices? Yes, but this will not filter through to the bottom line very quickly.

2. Increase efficiency in your factories? Yes, but again not likely to hit the balance sheet any time soon.

3. Reduce head count along the Supply Chain? Certainly effective but think about notice periods and compensation obligations and not least the effect on efficiency and reliability.

FMCG Pharma cost savings supply chain resized 600You will have contracts in place for most services with 3 or 4PLPs for warehousing but as long as pallet space utlisation, storage efficiency and shrinkage etc is under control there really are few opportunities and certainly no “low hanging fruit”.

People often rant on about how sales and marketing people are the real stars of any FMCG or Pharma show and without them nothing happens. Think about it, if you do not have any product available to sell it does not matter if you have the best sales pitch or the most memorable TV advert, does it? In simple terms the SC gets the stuff there and S&M might, repeat might, sell it!

Supply Chain people and processes get the product into Traditional Trade and Key Account outlets and how they do it is relatively inflexible in terms of discretionary spend along the way. So when you are looking for savings why do you assume they must come from Supply Chain and not from the huge sales and marketing budgets? The promised client discounts have not yet delivered and the proposed new TV advert is a long way from having an in-market impact.

Certainly, you have to keep control of costs and a rolling annual target is a sensible plan for any business but 2-3% Supply Chain reduction every year is commonly small beer compared with multi-million S&M expenses. Diverting your valuable Supply Chain resources to scrimp and save these small percentages simply takes people off the day to day priority of getting your SKUs onto shelves.

Those Supply Chain “savings” may not actually be money in the bank.

Image courtesy of cooldesign at freedigitalphotos.net

Tags: FMCG, Dave Jordan, CEO, Pharma, Supply Chain, Traditional Trade, Cost Reduction

FMCG Supply Chains – The most important roles?

Posted by Dave Jordan on Thu, Aug 09, 2018

I am often asked which job in the extended Supply Chain is the most important. For FMCG producers this may be the demand planner while for retail partners the key role could be innovation planning. I do have a view on this so park the question for now and read on.

I was in Tunis recently in the final few days before the eid holidays celebrations commenced. At just about every traffic junction farmers were selling sheep and goats for the upcoming big family feast that is a very important part of the local culture. Possibly incongruous when surrounded by so much soon to be red meat, I was eating a delightful fish lunch when I studied a temporary pen containing about 100 sheep and goats.

I noted how straw and other feed was being offered to each of the animals almost on a personal basis. Normally, farmers would drop a bale of straw or hay and leave the flock to fight it out on who gets the largest share and who goes hungry. Not here; each animal was encouraged to eat, eat and eat again. Why would they be so generous?

Of course, with the sheep sold by weight it was a cheap way to increase income. A kilogram of hay and feed costs a lot less than a kg of lamb!

I didn’t think I had seen this trick before then I remembered I had and it was much closer to home. If you are ever lucky enough to visit the Danube Delta in Romania then on the road back towards Bucharest you will see men and women standing at the side of the road with outstretched arms. This is not a weird salute to the Village People but it seeks to tell you they have very large fish available for sale.

You have floated on the Danube and probably seen many fish so why not buy some fresh local samples to cook at home in Bucharest or wherever your destination may be? Good prices too but more often than not you will find your fish has been stuffed full with stones. When you buy thee fish by weight you are paying for stones at the price of quality fish.

Ok, so if you don’t live in Romania or visit countries celebrating eid you may not have seen this cunning slight. Hold on! Yes, you have. This same is happening in virtually every country and I guarantee you have been on the receiving end.

When I was younger I remember my mother buying fruit and vegetables from a little green van driven by a fellow Tranmere Rovers fan, Mr Talbot. Mr Talbot would weigh the requested fruit and veg in an old fashioned scale that had a detachable bowl. The contents of the bowl would then be poured into whatever bag was available. You wanted a kilo (well, 2.2 pounds at the time) of potatoes and that is exactly what you received in return for your hard earned cash.

FMCG RETAIL SUPPLY CHAIN IMPORTANCE resized 600Today of course, supermarkets provide rolls and rolls of bags for you in which to collect your fruit and vegetables and then weigh the contents............ and the bag. I know, it is a small bag but you are paying for the bag at the price of the items you have purchased.

I used my local medium sized supermarket for a one off survey. Their bags weigh a surprising 1.5g but even so if you are buying potatoes at 0.15 Euro cents a kilo you are not losing much to plastic. However, if your tastes include lemon grass at 15 Euros a kilo then it starts to get significant.

My local shop tells me they use 1400 bags on a typical day so if there is a run on expensive stuff like lemon grass – I know, highly unlikely – then they are selling 2.1kg of bags at a price of 15 Euros per kg. A quick search of the internet shows that the most expensive purchase would be something called hop shoots which retail at a staggering 1000 Euro per kilo. Now that would be on expensive poly bag! I wonder how many bags are "sold" across the globe each day? When possible you should weigh your larger purchases and THEN put them in the bag if you can.

So at least one part of the original question now has an answer. The most important role in a retail supermarket Supply Chain is the person who makes sure those hard to open bags are always available. Having no bags makes it difficult to buy any loose fruit and vegetables while having bags is a real money spinner!

Image courtesy of stockimages at freedigitalphotos.netfreedigitalphotos.net

Tags: FMCG, Dave Jordan, Supply Chain

Manage Supply Chain Expectations with Service Level Agreements (SLA)

Posted by Dave Jordan on Wed, Jul 11, 2018

If you do not specifically agree on what is expected between two parties before you start a relationship then anything and everything but success is likely.

You buy a new car and you get a contract that tells you what is covered by the guarantee and for how long in time or in distance travelled. From your side you will be expected to pay the same people to periodically maintain the equipment at peak condition.

Travelling by air? You buy a ticket to Bucuresti and you know when and where it will take off and hopefully land you and how much baggage you can take. There are rules in place for delayed take off and excess and lost baggage. You might not like these rules but that is what you have agreed to by investing in the ticket. (Before you say it, I know certain airlines stretch the boundaries here yet people still fly on them!)

Service Level Agreement resized 600While it may not be as popular as it used to be, marriage is still perhaps the most widely used Service Level Agreement (SLA) in the world. The names of the two parties are made very clear to a number of witnesses and depending on your brand of religion there follows a list of statements you have to agree to or the marriage ceremony does not continue. You even get a certificate which is in effect a contract or your SLA. Of course, this does not go down the detail of who does the washing up or who gets up at 3am to feed the baby but it does set out clear expectations.

Should the husband run off with the woman for the chip shop then a divorce is highly likely. Think of the arguments about who gets to keep Eric the hamster if there is a parting of ways. Alternatively, you could use one of those “pre-nuptial” agreements favoured by plastic Hollywood-types who think a long relationship is several months in their world so far away from reality.

In all cases, it reflects “you scratch my back and I scratch yours” or sometimes “you stab me in the back and I take you to court”.

Despite SLAs being a vital part of daily lives why do FMCG. Brewing, Pharmaceutical companies fail to have the same in place for their suppliers, IKA/TT customers and internal departments within the S&OP framework? Such an approach holds people accountable for the service they provide and at the same time making the penalties clear in the event of failure.

SLAs do not have to be a lengthy tome of text but should contain enough information for both parties to be 100% clear about what is expected from the relationship. Include some relevant and why not stretching KPIs and you have the basis of a relationship that may flourish rather than end up in the divorce courts.

No relationship in business or in private life is perfect but why not start out by writing down what level of service you expect to provide to each other?

 

Tags: FMCG, Route to Market, Logistics Service Provider, Dave Jordan, Supply Chain, CEE, Traditional Trade, Logistics Management, Performance Improvement

SC and Sales senior team squabbles: Always bad for business

Posted by Dave Jordan on Thu, Jul 05, 2018

Another sign of getting old I guess. When was the last time you watched a football match when no tattoos were on show and the haircuts did not look like something out of the Time Warp musical? As I write England is still involved yet we are all waiting for the inevitable elimination on penalties. At least it won’t be to Germany this time – what rotten bad luck boys!

sales-supply-chain-disagreementIn other news I see The Donald and Kim Jong-un have finally met face to face after a great deal of public bitchiness. That must have been the bad hair day to end all bad hair days; an orange bird’s nest and something that looks like a greasy black croissant. Funny, after so much apparent dislike that these 2 diverse characters actually seem to get on well with each other, in public at least. Even if you don’t like someone you may still have to do business with them and that can be difficult.

The bird’s nest-croissant situation reminded me of many FMCG and Pharmaceutical companies where the Sales and Supply Chain Directors do not co-operate very well. Commonly they fail to see that doing business is just that and difficult discussions and criticism is not personal. However, when relationships break down (or don’t even start) you find that precious time is spent trying to prove the other party wrong.

While the focus should be on beating your competition, you may find that 2 of your key operational directors are motivated in a very different direction. You can hear your competitors laughing as the in-fighting worsens and the conflict cascades down the business to those operating at lower levels. Decisions are being made in order to trick or trip the other department and ensure KPIs are missed and fingers can be pointed. What a complete waste of time, effort and experience!

Such behaviour has to be tackled head-on and it needs the Chairman or CEO to bang heads together and quickly. From a leadership perspective it is vital that the CEO does not appear to take sides or knee-jerk react to information received.

One of the frequent causes of Sales-SC conflict is a poor alignment of Key Performance Indicators. When setting KPIs for the senior team it is important to ensure that a few principles are observed:

  1. Some KPIs must be shared. If a bonus relies on performance of some common KPIs then you are more likely to put the personal stuff aside and do what is best for the business. Stop allocating silo based KPIs.
  2. KPIs should be equally stretching. Any imbalance will surely lead to a bitter and twisted relationship for all involved.
  3. Share out the recognition. Sales tend to be seen as the in-market heroes yet everyone else in the company is working to support that success. If the quarter has gone well, congratulate everybody.

If the Presidents of USA and North Korea can get along despite many, many differences in style and opinion then surely there is hope for your Sales and Supply Chain Directors.

Image courtesy of Ben Schonewille at freedigitalphotos.net.

 

Tags: CEO, Supply Chain, Sales, KPI, Dave Jordan

FMCG ERP and The Beatles.......? Spreadsheets cause damage.

Posted by Dave Jordan on Wed, Jul 04, 2018

Some time ago I wrote about the way spreadsheets were undermining expensively assembled ERP’s in FMCG, Brewing and Pharmaceutical companies. They still are, by the way.

Not too long ago a paper on Public Debt and Austerity published by 2 eminent Harvard Professors was found to contain errors in the Excel coding. Several significant countries were excluded from the data analysis and therefore the conclusions could not be accurate.

The glitch was spotted by a student who like everyone else, believed he and not the professors must be wrong. If you can make mistakes at this level then think what may be happening in your demand planning office. A decimal point in the wrong place or a misplaced cell could lead to market place challenges in stock availability or indeed, excess.Beatles_ERP_Spreadsheets

The bug in that Public Debt spreadsheet leads me to the Beatles – what a segue! Here is what Lennon & McCartney might have written about spreadsheets and ERPs.

Yesterday, an IT man took my Excel away
Now I have to plan a different way

How I wish it was yesterday

Certainly, I’m not as comfortable as I used to be
There's a new ERP in front of me.
How yesterday came shockingly

Why Excel had to go I don't know, IT wouldn’t say
Did I plan something wrong? How I long for the Excel way.

Yesterday, spreadsheet planning was the only way
Now I need to learn a different way
I need to believe in our ERP

Why Excel had to go I don't know, IT wouldn’t say
Did I plan something wrong? How I long for the Excel way.

Yesterday, poor planning was the only way
Error riddled spreadsheets everyday
Now I don’t believe in yesterday
Mm mm mm mm mm mm mm

You can catch up with the classic Beatles track by clicking here.

If you do not run an ERP that relegates spreadsheets to useful and reliable supporting tools then you are risking poor planning in your business.  If you are running an ERP you might check exactly where the data comes from, where critical calculations are really made and how secure is the information.

Image courtesy of artur84 at freedigitalphotos.net

 

Tags: Dave Jordan, CEO, Pharma, ERP/SAP, Supply Chain, Forecasting & Demand Planning, ERP

FMCG S&OP: Who is the stooge in your process?

Posted by Dave Jordan on Mon, Jul 02, 2018

Laurel and Hardy, Morecambe and Wise, Abbott and Costello, Little and Large, Hale and Pace, May and Johnson. These are examples of double acts where one party plays the straight/stooge and apparently serious man while the other plays the fool/jester. I admit I am not too sure who is who in the last example.

Having suffered 2 weeks of UK television recently it was difficult not to see the latest popular double act of Ant and Dec popping up at frequent intervals (mostly Dec in the medium term though!). My jury is out on these two as they appear to be part of a UK TV talent vacuum glibly presided over by a man who looks like a dark-haired Max Headroom – youngsters, Google it. I always thought Simon Cowell was that nice bloke who rescues badgers from drains in Surrey but there are 2 of them!

S&OP Success Through TeamworkAnyway, the point is that these performers work through their contrast in styles and the way each party plays off the other to score points and generate laughs. For some reason the first name in the act title is usually the funny or less serious partner who generates the gags and generally puts down the straight partner. This notation is also consistent with Sales & Operational Planning with OP being the collective remainder of your FMCG, Brewing or Pharma business.

Why do so few Sales people – at any level of seniority – get S&OP? In fact do any Sales people really get S&OP and recognise the process as one for common good in a company? If only there was a way of replacing sales bonuses with cross-discipline, volume/value bonuses. While the straight man of the team endeavours to supply on time in full against the forecast the joker waits until the last few days of the month to sell anything including his granny to make the required number and secure a bonus. And thus, the monthly cycle repeats again, and again, and again.

If you pump too much unwanted inventory (done pretend its sales) into the market sooner or later you will need to destock your distributors and/or International Key Accounts (IKA). Distributors have always been ripe for a bit of extra loading here and there to manipulate the sales figures but do not fool yourself this does not happen with IKA. It does and with the modern power of IKA accounts you might find yourself with a very unwelcome stock return and a difficult to refuse request for compensation and refund.

Frequently, when things go wrong in the market place the Sales people will chirp up with something like “that’s another nice mess you’ve gotten me into” as a prelude to their Teflon blame-storming. S&OP requires a team effort to succeed as a process which will lead to better performance in the market place. No planning or forecasting process is ever perfect but a little more diligence and team playing from the funny man would bring immediate and lasting results.

 

Tags: Dave Jordan, Humour, Supply Chain, CEE, S&OP, Forecasting & Demand Planning, Sales, FMCG

Supply Chain: A top 10 Supply Chain faux pas!

Posted by Dave Jordan on Thu, Jun 28, 2018

I have just had one of those mornings. I missed the alarm and the 10-minute snooze and from then on everything went downhill. Jumped in the shower for a brief cleanse but then I realised there was no soap, not even a sliver. So, soaking wet I get out, but can I find anything remotely soapy? There was no time to waste so the Charles and Di souvenir tablet had to be sacrificed.

Obviously, it was quite a few years old and completely lacking in perfume but if I could generate a foam that would do the trick. I actually found myself apologising to the princess as I showered! Finally clean, I quickly sprayed shaving foam under my arms, brusupply chain exec tipical problemsshed my teeth with some really vile tasting skin cream and I was set to face the world. Well, I would have been if I hadn’t managed to put my Polo shirt on inside out.

I know students turn their underwear inside out to get a few days extra wear but I’ve started to put shirts on inside out. I was in a Birmingham Vodafone shop with the heiress when she leaned closer and told me what I had done. I just took the shirt off and put it back on again proving that you’re never too old to embarrass your daughter!

Only shoes left before a rushed mobile breakfast before finally getting on my way. How knotted can a shoelace get. There are only 2 ends about 40cm apart, yet they get into knots a Rubik’s Cube genius could not release within 48 hours.

Does that sound rather like your Supply Chain?  The 2 ends may well be continents apart but some of the supply knots companies get themselves into are incredible. Here is a list of top 10 totally terrible Supply Chain knots we have seen in the last 12 months alone. As ever, no names, no pack drill!

  1. A snacks company tried to sort out their Supply Chain challenges using internal resources and ended up disbanding the SC structure.
  2. A well-known DIY retailer “found” over 1000 pallets of product that were on the books but had expired.
  3. A regional Brewer boasted of a cutting-edge S&OP implementation when in reality staff were just going through the motions as Sales colleagues had become disengaged.
  4. An African FMCG business had over-stocked the distributor network so much that they could stop manufacturing for 4 months without any impact on sell-out.
  5. A global agri-business outsourced their logistics operations to the cheapest tender quote and quickly paid for this with severe out of stocks.
  6. A new ERP will solve all of our problems said a Printing CEO. After paying a huge price for a vanilla deployment they are now shelling out again to actually have an ERP that fits their needs.
  7. An Eastern European tobacco company opened more warehouses than were actually required and as is the rule, they were quickly filled with unnecessary working capital.
  8. A direct supplier to the motor industry was carrying Eur 2.5M of spare parts for vehicles that are no longer in production.
  9. A Brewer invested heavily in their RTM network with proven success only to mimic a later competitive move and see sales collapse during the peak season.
  10. A garage forecourt operator allocated Supply Chain activities to the Sales Department and soon realised very different skills were required for success.

All relatively easily avoidable if only some expert advice had been sought. Some of these problems make my disastrous morning seem like a walk in the park.

Image courtesy of imagerymajestic at freedigtalphotos.net

Tags: Spare Parts, FMCG, Supply Chain, Logistics Service Provider, Inventory Management & Stock Control, Dave Jordan, Route to Market