Putting real links in internal supply chain logistics
The line was running well, so we just kept making it. How often have supply chain managers heard that? It seems like all concepts of the linkage that a chain implies is often lost between production and the distribution team that stands between the customer and the point of manufacture.
Purchasing and manufacturing seem to always be a dysfunctional link in the supply chain. Manufacturing mostly wants the status quo while purchasing seeks to change to get closer to the perfect supplier. Often, however, the decisions are not shared as independent departments see little logistics synergy. The result is often service disruptions and higher logistics costs.
Often the people negotiating with carrier are not the same people who, on a day-to-day basis, deal with tendering shipments on loading trucks. This generates higher logistics costs as, for example, the lowest priced carrier also provides equipment that cant haul as much weight as a modestly higher cost carrier with lightweight equipment.
DRP planners often create plans that the loaders in the warehouse cant execute. For example, trying to ship 30 pallets of product having a pallet layer pattern that over-hangs the pallet by 2 inches each direction. There is no way this fits on the truck! Result " logistics misery " cutting product and creating potential shortages.
The internal supply chain doesn't have to be dysfunctional. There are easy ways to improve communications and create a linked internal supply chain. Reward everybody in the supply chain using the same set of metrics. In this way, purchasing prospers when manufacturing succeeds in lowering total product cost. Coordinating planning and execution requires planning systems to link to execution systems " or better, use the same systems.
The systems that coordinate activities are relatively new on the market. By replacing existing load builders, an optimizing vehicle load builder can provide detailed execution instructions to the loader and ensure damage-free, optimized axle-weight, maximized, or cubed-out loads. Distribution master scheduling systems create a schedule for all activities while not over consuming constrained resources (people, dock, doors, inventory). This type of system integrates all the supply chain information from order management systems to WMS location data.
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