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Do you know how to win?

Posted 01-08-2010 at 10:53 AM by Albert Fong (Al's Supply Chain Corner)

Do you know how to win? Think about it…is your response to this question specific and coherent or broad and vague? Chances are it’s the latter for one simple fact: many of us confuse where to play with how to win. ARC Advisory Group recently wrote about this in a post titled “Are 3PL CEOS bad at strategy?” While that sounds a bit tongue and cheek, it also seems to reinforce why the supply chain seems to be in a state of catch up all the time, and I’m not just talking about 3PLs. The fact that supply chain visibility still seems more of a luxury rather than a mandatory requirement proves this point.

As the post pointed out, CEOs tend to be pretty good about spouting off about sectors they want to play in (SMB, abroad, specific verticals), but not so good when it comes to what to do to get there and dominate. The bigger issue comes down to how strategic you are, and whether you have the right people, tools, and most importantly culture to get there. Why is culture...
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Cough medicine and what ails the supply chain

Posted 01-05-2010 at 01:52 PM by Albert Fong (Al's Supply Chain Corner)

As winter blankets most of the nation in cold weather and frost conditions, it’s probably a good time to talk about cough medicine or medicine in general. According to one study just released today, something as basic as the wrong spoon size can create either make cough medicine ineffective or downright dangerous. Most people either pour too little or too much creating potential problems that can either prolong the symptoms of a cold or even worse.

You’re thinking to yourself “What does this have to do with a supply chain blog?” Actually, the wrong spoon is a nice analogy for the problems that impact most of today’s supply chains. Most businesses have either no warehouse management system in place while others simply suffer from feature overkill. In both cases, you’re paying for it and hurts more than you know.

To make the “wrong spoon” even more relevant, just look at life sciences and online pharmacies. I’m sure many of us have relied on the...
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A year of futility, a decade of resilience

Posted 12-29-2009 at 12:09 PM by Albert Fong (Al's Supply Chain Corner)

As we prepare for 2010 and the beginning of a new decade, it’s usually customary and almost cliché in many ways to look back and reminisce. But, in this case, I doubt many have that desire. To say that the past decade was tough is an understatement. From attacks on U.S. soil to debauchery in the financial markets, many will want to forget this decade, but really, it’s one that we should remember.

There’s a saying about history and learning from our mistakes, but the reality is that we as a society won’t. We never have because if we did, wars would be a thing of the past, ponzi schemes a notion found only in history books, and recession a term solely used by economists. No, we’re doomed to make the same and even more elaborate ones. What we should do is look back on the past decade to see what got us through it all because it’s what will help us move forward.

On a daily basis, I work with people in the logistics industry who have struggled especially...
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Are you ready for 2010?

Posted 12-22-2009 at 11:22 AM by Albert Fong (Al's Supply Chain Corner)

The overall theme of this year’s DC Velocity Outlook survey is that 2010 will be a mixed bag of optimism tempered with a strong dose of concern. The survey where the majority of respondents worked with manufacturers and distributors found most (56 percent) are upbeat about the momentum of the economy, although only a small number (15 percent) believe it will come roaring back.

In terms of company growth, 54 percent see strong to weak growth, while 39 percent expect flat sales. Cost cutting is still the name of the game where the majority of are or intend to cut distribution costs. The leading cost-cutting actions include shipment consolidation, rate renegotiations with carriers, reduced express shipments, and redesign of the supply chain.

When it comes to spending, only 30 percent plan to spend more on logistics products and services, while 44 percent will keep their budgets at current levels. Respondents were specifically asked what they would purchase...
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A Good Supply Chain and Bad Santa

Posted 12-18-2009 at 11:28 AM by Albert Fong (Al's Supply Chain Corner)

As we head into the final shopping weekend before Christmas, I thought it would be helpful to write on a topic that wasn’t heavy duty, supply chain related. And, Diane Mapes’ article about gifts that you probably shouldn’t get for loved ones provides just the right opportunity. Depending on your state of desperation, self-help gifts are likely available regardless of inventory issues, although I would think long and hard before going down this path.

During the past week I’ve been warning people, mostly shopping procrastinators, about the lack of inventory at stores this holiday season. Whether you’re a procrastinator or simply a calculating shopper, the majority of retailers aren’t carrying much stock this year. So blowout sale or not, they may not have the product you’re looking for. Emotionally speaking, self-help gifts would be ideal and practical because they demonstrate thoughtfulness. But, perception wise, they can often wind up being thoughtless instead....
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