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Implications for Control of Distribution Costs & Supply Chain Efficiency as Australia Moves to FOB – ‘Free on Board’ Trading Terms
The continuing drive by Australian industry to reduce costs and enhance service capability is forcing a change to the existing paradigms employed by users and providers of freight services. Companies attempting to remain competitive in the global economy are no longer willing to tolerate the inefficiencies present in many components of Australian supply chains.
One of the initiatives by the major retailers is a move towards managing inbound freight instead of having the supplier organise and pay. This paper looks at the implications of the trend towards FOB trading terms on the key stakeholders of the supply chain – the buyers of products, the sellers of products, and the logistics providers who move the products. Download FOB White Paper
Extending the supply chain horizon: ‘Developing a collaborative IT strategy’
From the emergence of the Internet, to Y2K and the dotcom era, most organisations have whizzed through the last decade without checking their rear view mirrors. Many companies have committed millions of dollars to supply chain management (SCM) tools, including implementation, consultancy and systems integrations to install the software. Now with the onset of collaboration, senior management is faced with the challenge of not only ‘getting their IT houses in order’, but also opening up their businesses to their trading partners to reap further costs savings and efficiency improvements. Download IT Collaboration
Logistics Outsourcing – A Leopard Can Change Its Spots
For many senior executives, it used to be the case that a discussion on logistics was a discussion about a delivery route or a warehouse at the back of their site. These days however, logistics is a complex and continuously evolving element of an organisation’s busines strategy, requiring the dedication of an increasing share of its focus, time and resources. The increased complexity and sophistication of contemporary supply chains have required a significant investment in both human and financial capital to keep pace with technological change and innovation. Download Outsourcing
Slow moving inventory – All dressed up and nowhere to go
With economic slowdown a global reality, companies are stepping up their efforts to find operating efficiencies and reduce capital requirements. The name of the game is no longer grow at any cost. Now, the cost of generating sales return on assets (ROA) and return on investment (ROI) carry significant weight. As part of an overall effort to become more efficient and compete in a tough economic environment, we suggest organisations need to review their approach to inventory management. We believe that concentrating in this area will produce significant, short term results. Download Inventory
Collaboration – Start Sleeping With The Enemy
A lot has been written recently about the new opportunities for collaboration between supply chain partners. A brief study reveals that much of what has been published is “new wave” concept or simply repackaging of existing practices like contract manufacturing, strategic procurement or logistics outsourcing. We believe that collaboration represents a more fundamental shift in the evolution of supply chain relationships and that we are still in early days with respect to how collaboration will change supply chain models and what benefits will actually be realised. Download Collaboration
Procurement – Process before Portals
The wide range of e-procurement products currently being promoted makes it easy to think that the path to major savings is little more than a few mouse clicks away. Is it really that simple? Has the creation of electronic marketplaces and the development of Internet based tools such as reverse auctions swept aside the fundamentals that have underpinned good procurement practice in the past? Download Procurement
Shared Delivery – The Route to Lower Costs and Improved Customer Service
Shared Delivery allows companies to make a quantum leap in the way they serve customers. Both through physical changes and the use of detailed, real-time information, Shared Delivery allows organisations to dramatically reduce distribution costs (by upto 30%) whilst actually improving service parameters. These benefits, combined with increased market penetration, makes Shared Delivery one of the most exciting concepts to move towards implementation in the last 20 years. Download Shared Delivery – Part 1 and Download Shared Delivery – Part 2