Both global and domestic supply chain networks will need to become more resilient and reliable in order to better manage more volatile demand as well as pressures on margins, according to recent analysis by two consulting firms.
Retail has an $800bn problem, according to research firm IHL Group. That is the collective cost of inventory distortion in out-of-stocks and overstocks among retailers today, and it could increase same-store sales by 9.2 percent if completely fixed.
U.S. distributors and freight haulers have held down diesel consumption even as their business recovers from recession by making thousands of small changes to their operations. Improved driver training, restrictions on idling and careful route planning to reduce deadheads are all reducing consumption of expensive diesel while helping companies promote their green credentials.
South African companies, particularly bigger enterprises, are making significant progress in optimizing their supply chains; however, opportunities for further enhancement do exist even for the most advanced practitioners.
UHC announced that its member academic medical centers achieved record supply chain savings and value of $400m in 2012. The saving amount represents five percent of UHC members' record aggregated spend of $8.1bn and includes cash returns as well as operational savings.
TNT Express has set out plans to make recurring savings of 220m EURO by 2015 with a series of measures, including consolidating services, optimizing its infrastructure and reducing indirect costs. The restructuring is expected to cost 150m EURO by the end of 2015.
Navevo, developers of satellite navigation for heavy-goods vehicle (HGV) drivers, has announced the launch of its Line of Route technology, a navigation system specifically designed for fleet operators that can significantly cut down on wasted journeys and lost man hours, saving thousands of pounds every year.
Global logistics giant Kuehne + Nagel have announced the restructuring of their European operations in the first step of a "comprehensive programme for increases in efficiency". In an online statement released on their website, KN explained it will optimize its regional structure beginning July 2013, beginning by merging the current organisational units of central Europe, northwest Europe and southwest Europe into one central region.