Often, the company’s growth is held back by misaligned processes in supply chain. SCM is the “blood system” of the company, the task of which is the process of managing flows: goods, services, information at all stages from placing an order for the raw materials to its supply by the final Customer. The business efficiency and financial health of the company depend on the coordinated operation of the supply chain.
Loss of sales due to lack of goods in stock? Accumulating goods with low turnover, illiquid inventory? Do you feel a lack of working capital? There is a lack of funds and you have to ask for a postponement of payment to suppliers of goods and services? Tortured by the chronic overdue of receivables? Is the percentage of logistics costs growing faster than sales? Demand forecast errors? “It’s not your season” again?
We are entering an era of interaction and cooperation economy. Here, the boundaries of roles and functions are blurred, where the Business that interacts more effectively with internal and external customers gains a competitive advantage.
A common mistake of a logistician is to focus exclusively on product flows and the lack of proper communication and interaction with related functions.
The only model — “doing your job well” provides a very mediocre result and blocks business growth. Ineffective communication and the lack of synergy lead to colossal losses.
In my experience, losses from disruptions in information flows in the example of a medium-sized business in the FMCG sector turned out to be equal to the budget of transport costs — a large amount, don’t you agree? But these are pure losses. And if you calculate the underachieved profit from the lack of synergy, believe me, you can compensate for half of the budget of the entire logistics.
Developing leadership in employees and managers and building information flows in the supply chain management system are equally important tasks for a leader.
You are familiar with such issues:
– illiquid inventory and excess inventory of some goods and shortage of others;
– how to optimize logistics costs;
– how to build a working motivation system and KPI’s;
– secondary role in the business management team.
What you will get:
– comprehensive understanding of the role and tasks of logistics;
– direct levers of influence on the financial result of the company;
– building a system of KPIs and motivation;
– simple, clear methods of demand forecasting and procurement planning;
– calculation tables and formulas for analysis of assortment and formation of commodity stocks;
– one of the key roles in decision-making in business.
You are familiar with such issues:
– lack of goods for successful promos;
– untimely delivery to customers;
– warehouse management and the cost of POS materials and equipment;
– introduction of new products on the market.
What you will get:
– maximizing the effectiveness of marketing actions;
– management of placement and cost of POS materials and equipment;
– effective introduction of new products and product category management.
You are familiar with such issues:
– uneven supply of products;
– «sweeping» of goods from the shelves and loss of sales;
– problematic relations with logisticians.
What you will get:
– availability of building optimal stock in retail outlets and distribution warehouses;
– system management of the supplier-distributor-retail logistics chain;
– partnership relations with logisticians in the company.
You are familiar with such issues:
– gaps in Cash Flow;
– profit reduction;
– frozen money in commodity stocks;
– high accounts receivable of distributors;
– lack of funds to pay suppliers of goods, raw materials and services.
What you will get:
– comprehensive understanding of processes in logistics;
– how logistics influence the financial result;
– how to establish efficient logistics work;
– increase turnover of commodity stocks;
– reducing the level of receivables of distributors;
– methods of planning the logistics budget, planned cost and the expendable part of Cash Flow.
Reasons:
– the planning and budgeting system is not correct;
– excess stocks;
– lack of inventory management system (order calculation).
Decision:
– annual planning and budgeting;
– operative planning;
– systematic sale of goods stocks with low turnover;
– construction of a stock management system (insurance stock, operational stock);
– automatic ordering system from distributors.
Reasons:
– incorrect demand forecast model (forecasting errors);
– lack of inventory and procurement management system.
Decision:
– selection of a forecasting model based on seasonality, trends, product life cycles;
– construction of a stock management system with calculation of insurance, operational and maximum stock in the system;
– adjust the distribution logistics system.
– determine the sources of costs;
– determine the reasons for the increase in costs.
Main cost centers:
– costs for the purchase of raw materials, materials, services, transportation, customs duties, VAT, payment to the broker. These costs are included in the cost of production;
– costs for storage, processing, distribution, permit documentation and other services related to the logistics budget.
– the KPI system is a control panel for the logistics manager that reflects the real state of affairs;
– first of all, logistics KPIs must correspond to the company’s strategy;
– the main KPIs in logistics are stock turnover, service level, budget and planned cost indicators.