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Table of Contents 2 Chapter 1: The Contractor Supply Chain 5 Chapter 2: Supply Chain to Value Chain 8 Chapter 3: Reliability and Performance: Critical Components of Value 13 Chapter 4: Measured Cost by Activity 17 Chapter 5. Outsourcing vs insourcing in the human resource supply chain: acomparisonof. Wong-MingJi Eastern Michigan University, Ypsilanti, Michigan, USA, and. 1 CONTENTS Executive summary 1. Dimensions of Supply Chain Improvement 3. The European Chemical Industry and Supply Chain 4. Supply Chain Challenges 5. Supply Chain Improvements 6. Role of the EU and National. With your CSCMP membership, you have access to the most up to date research on topics from various supply chain disciplines. With the supply chain industry suffering from a lack of available talent for management positions, U.S. Terrestrial and aquatic biomass feedstocks. Biomass is a renewable resource that acquiries carbon by carbon dioxide fixation during their growing cycles. In comparison to fossil fuels such as natural gas and coal, which. TPA Supply Chain Conference 2. Program. Concurrent Breakout Sessions: The Supply Chain Visibility Opportunity: Opening the Door to Process Improvements, Customer Satisfaction, and a Safer Supply Chain. Driven by impending government regulations and the consumer’s need for more accurate and complete product information, food industry stakeholders are committing to improved traceability using supply chain visibility. By creating a consistent and interoperable data- sharing environment, supply chain visibility enables all trading partners to be able to uniquely identify products and share key data elements at critical tracking events throughout a product’s life cycle. It is one of the most important opportunities for the entire retail grocery industry to contribute to a safer food supply chain, enhance operational efficiencies and adapt to today’s heightened emphasis on fast, trustworthy information. During this session three leading industry expert will discuss how supply chain visibility has become a priority for trading partners in both CPG and fresh foods to solve challenges such as On- Shelf Availability and lead to enhanced customer loyalty, a lift in sales, and supply chain efficiencies. Speakers. Ryan Richard, Senior Director Industry Development Retail Grocery, GS1 US Ron Trauthwein, Group Director Customer Solutions, The Coca- Cola Company. Debbie Bower, Director of E- Commerce, Dot Foods, Inc. Download presentation here. Leveraging Metrics, Process & Technologies to Improve On Shelf Availability – An Insight to Action Report. At the 2. 01. 5 Conference, the TPA white paper highlighted potential revenue loss of 8 to 1. Shelf Out of Stocks in an industry already challenged with rising costs to the consumer. The TPA On Shelf Availability Team is back with Retailer- Supplier case studies to advance industry learning and solutions. This session will share the findings from joint Retailer- Supplier pilot efforts to analyze, validate and optimize OSA by leveraging various metrics and technologies to better understand the location, quantity and accuracy of promoted/non- promoted products at the SKU- Store- Shelf level, determining root causes of OSA failures and prioritized plans to improve. Speakers. Lois Fruhwirth, Associate Director, Grocery Retail Supply, The Procter and Gamble Company. Brian Sikkema, Divisional Vice President, Merchandise Planning/Inventory Management, Meijer, Inc. Dave Soth, Retail Supply Leader, The Procter and Gamble Company. Improve the competitiveness of your business with ITC’s Supply Chain Management programme. Over the past ten years, ITC’s Supply Chain Management (SCM) team has helped train over 20,000 business. 1 WHITE PAPER: Key Trends, Skills, and Knowledge Required for the Supply Chain Manager of the Future Robert B. Handfield Director, Supply Chain Redesign Triangulation of Findings from Focus Groups and Survey Results Based on. The evolution and future of logistics and supply chain management. Case Western Reserve University. Integral planning: planning of the entire supply chain. It can focus on internal supply chain issues (i.e. Chris Kelly, Senior Director, Operations Planning and Engineering, Giant Eagle, Inc. Reverse Logistics – Uncovering the Value in the New Age of Omni- Channel Commerce. Changes in buying patterns are dramatically increasing the volume of products and assets flowing through our reverse logistics pipeline. Unsaleables 1. 01. In this session, two veterans of the Reverse Logistics segment of the food, beverage and drug supply chains will provide an overview of how this part of the business got to where it is today and what some companies are doing to minimize unsaleables waste. Data Into Dollars: Migrating To A Contemporary Supply Chain. Sponsored by: Supply Chain is the highway and demand forecasting modeling controls manages the traffic. However, many supply chains find their speed and flow impeded by unseen weakness in forecasts, trade promotions, variability, and incomplete POS data. This game- changing topic may be the secret to reduce costs and chaos. In this session we’ll review real- world demand modeling case studies and show how it’s not complicated to extract more value from the data you already have in your hands. Speaker. Pat Smith, Managing Director of Tools. Group North America. Download presentation here. Strengthening health care. Companies are expanding their product portfolios to meet rapidly changing markets and lengthening product life cycles. Emerging economies want more affordable products. Quality and compliance issues are rising because products are more complex and regulatory scrutiny is stricter. And the number of drug recalls is increasing. Yet the supply chain remains fragmented and incomplete, with weaknesses that put patients at risk, cost billions in value, and lessen the health- care sector’s ability to take on the challenges it faces. We believe that by learning from the experience of industries such as fast- moving consumer goods (FMCG), the health- care sector could cut production lead times and obsolescence, while manufacturers, distributors, hospitals, and pharmacies could carry significantly smaller inventories (Exhibit 1). Improving the health- care supply chain also could give millions of people around the world access to safer and more affordable health care, reduce costs, and provide new revenue sources for manufacturers. Exhibit 1. Operational metrics suggest huge opportunities. In our experience, limited improvement efforts yield poor results, while comprehensive, integrated efforts are complex. But the payoff can be significant. Supply chains now account for nearly 2. The annual spending is so vast—about $2. In fact, if the sector adopted straightforward advances well established in other industries, we estimate that total costs (from the supply chain and external areas, such as patient care) could fall by $1. The improvement from better- performing supply chains would range from about 6 percent for retailers to 2. Exhibit 2). Exhibit 2. Opportunities from the transformation of supply chains can be found across the whole value chain. Since 2. 00. 5, drug shortages have nearly tripled in the United States and added more than half a billion dollars in costs for hospitals worldwide. Supply issues also create opportunities for counterfeiters and gray- market vendors, threatening patient safety and cutting into the revenues of legitimate companies. Supply- chain security breaches are increasing by an average of more than 3. China, India, and Brazil but also in the developed world. About 1 in 1. 0,0. Better supply- chain processes are central to increasing patient safety. We estimate that adopting a common global data standard and upgrading supply- chain processes could slash counterfeiting in half, returning $1. Building a new health- care supply chain. A typical Asian laptop manufacturer can accept an order on a Monday and deliver a pallet of freshly assembled customized computers to a European customer little more than a week later. In contrast, a typical pharmaceutical manufacturer has a lead time of about 7. How can medical- device and pharmaceutical manufacturers close the gap? Of the five comprehensive transformations we have identified, three can be accomplished internally. Two others—alignment and collaboration—are potentially the most powerful but require a company to work together with its customers, suppliers, and even competitors. Here’s what must be done. Internal factors. Many pharmaceutical and medical- device companies come close to running one- size- fits- all supply chains. In practice, however, there can be significant differences in profitability, value per unit of weight, demand, the importance of a drug or device to patients, a customer’s cost to serve, and service expectations. Forcing products with such varied characteristics through a single set of supply- chain processes creates multiple inefficiencies, such as high inventories for some products while others are in short supply, the use of expensive air freight when slower surface modes would do, or a need to reschedule production campaigns hastily to meet urgent delivery requirements. Leading companies tackle these problems by intelligently segmenting their supply chains according to the characteristics of products and the requirements of customers. They then develop forecasting, production, and distribution strategies for each category. This means more than just being fast when there’s an emergency; it means building an operating model that can better respond to demand shifts and customer wishes—at the same or even reduced cost. As we mentioned, the replenishment lead time from pharmaceutical plants to distribution centers is 7. But leading companies in sectors such as fast- moving consumer goods take a fraction of that time, often without additional investments. Companies must better align the production cycle with the patterns of patient demand and increase the low frequency of their manufacturing processes. The average stock- keeping unit (SKU) is packaged every two to three months; only about 1. Many health- care companies need to make deliveries from third parties and in- house plants more reliable and to upgrade their sales- and operations- planning capabilities to the standards of the fast- moving- consumer- goods industry. The necessary improvements include a more disciplined cross- functional process, a better understanding of demand- and- supply scenarios and of underlying assumptions, more effective communication, and transparency on potential supply issues and bottlenecks. Health- care companies need to increase the transparency of their costs, including manufacturing, transport, warehousing, inventory holding, staff, and obsolescence—moves that could cut operational costs and optimize route- to- market approaches and product portfolios. Improvements are also needed in structural drivers or capabilities: responsiveness, manufacturing frequency, reliability of supply, and stability are mostly not systematically measured or managed across the network. Consumer- goods companies are clearly more advanced: they watch metrics such as the manufacturing- frequency index to measure the share of SKUs that are produced with high frequency. Finally, companies must standardize metrics across countries and plants. Commercially available benchmarking tools and approaches provide rough guidance for high- level opportunities in services, costs, and inventories, but not fully comparable results or tangible recommendations on how to capture value. External factors. While internal optimization can deliver better service at lower cost, companies have even more to gain from optimizing externally. To do so, they must align processes and improve collaboration. Manufacturers of fast- moving consumer goods use point- of- sale information from retail customers to build production plans. The grocery industry, for example, has created billions of dollars in value by adopting standard barcodes. To build a cost- effective supply chain, the health- care sector could align around a single set of global standards that support data interchange, processes, and capabilities. Doing so may increase efficiency and patient safety by making it harder for counterfeiters to operate, by reducing medication errors, and by improving recall processes. While the use of common standards is part of the challenge, supply- chain partners must find ways to collaborate more effectively to reap the full benefit. Barriers to improvement are often cultural rather than technical—transactional relationships must be transformed into something more ambitious. In our experience observing successful collaboration projects, six essential steps can make the difference between a productive collaboration and a frustrating one: companies must collaborate in areas where they have a solid footing; agree on sophisticated benefit- sharing models; select partners for the potential value of the collaboration, as well as their capabilities and willingness to act as a team; dedicate resources to the collaboration and involve senior leadership in it; jointly manage performance and measure impact; and start out with a long- term perspective. More than 7. 0 percent specified improved collaboration. By embracing the challenge of supply- chain leadership, pharmaceutical and medical- device companies can provide safer, more affordable access to products that enhance or even save the lives of people across the world. You can find further information on the topic of standardization by downloading the related report Strength in unity: The promise of global standards in health care (PDF–3. MB). About the author(s)Thomas Ebel is a principal in Mc.
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