logistics - Blog - Global Risk Community2024-03-29T10:34:05Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/logisticsImprove Logistics With Six Sigma - 6Sigma.ushttps://globalriskcommunity.com/profiles/blogs/improve-logistics-with-six-sigma-6sigma-us2021-06-24T07:21:30.000Z2021-06-24T07:21:30.000ZRobson Tolsonhttps://globalriskcommunity.com/members/RobsonTolson<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/9134842464?profile=RESIZE_400x&width=400"></div><div><p>Six Sigma has proven to be an effective methodology for reducing variation in the manufacturing process. It enables businesses to streamline their operations by reducing or eliminating defects in manufacturing processes. As a result, business output improves, resulting in cost savings, increased customer satisfaction, and a higher bottom line. And, because of its emphasis on continuous improvement, organizations are better positioned to continue improving in the foreseeable future and reap additional benefits.</p><p>Fortunately, Six Sigma can be applied to any process (not just manufacturing). Six Sigma can be used to identify mistakes or defects in an organization's logistical processes and eliminate them to reduce the amount of variability. Here's how Six Sigma can be used to improve logistics.</p><p>Eliminating Mistakes</p><p>A high rate of error in logistical processes can significantly reduce their efficiency. The Poka-Yoke is a useful tool used by Six Sigma to eliminate errors. This is a Japanese term that means "mistake-proofing," and it refers to a device or mechanism that forces a person to do something one way or the other (the right way).</p><p>A famous example is starting an automatic car. When the car is in drive, it does not start since you can’t turn the key. This is because starting it in the drive will cause the car to jerk forward. This usually happens in a manual car when you attempt to start the car when it is in gear since it has no Poka-Yoke for that. Only when you put the automatic car in park or neutral will it start. </p><p>Another way Six Sigma helps eliminate errors is through <a href="https://www.6sigma.us/six-sigma-articles/successfully-approach-5s-in-lean-six-sigma/">5s process</a>. It allows organizations to create a highly organized work environment to minimize the chance of mistakes happening. The 5s stand for:</p><ul><li>Sort</li><li>Set in order</li><li>Shine</li><li>Standardize</li><li>Sustain</li></ul><p><strong>Reduction in Cycle Time for Order Fulfilment</strong></p><p><strong>……………</strong></p><p><strong>Increasing Order Fulfilment Efficiency</strong></p><p><strong>……………</strong></p><p><strong>Read full Article: </strong><a href="https://www.6sigma.us/logistics-and-transportation/how-to-improve-logistics-with-six-sigma/">https://www.6sigma.us/logistics-and-transportation/how-to-improve-logistics-with-six-sigma/</a></p><p><strong>Conclusion</strong></p><p>Six Sigma is a process that can be used to improve any process, even if it is logistical in nature. By doing things like eliminating mistakes and reducing the time it takes to get products into the customer’s hands, an organization can transform its logistics system. All this will translate to more revenue and growth.</p></div>How to Perform Warehouse Costing Using Cleansheet Analysis?https://globalriskcommunity.com/profiles/blogs/how-to-perform-warehouse-costing-using-cleansheet-analysis2021-02-23T08:49:57.000Z2021-02-23T08:49:57.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8588246254,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8588246254,RESIZE_400x{{/staticFileLink}}" alt="8588246254?profile=RESIZE_400x" width="350" /></a>Warehousing costs at most firms are extraordinarily higher than they ought to be. Across the world, organizations spend around €300 billion annually on Warehouse Management. With the boom in online retail stores and the increasing complexity of <a href="https://flevy.com/browse/stream/supply-chain">Supply Chain Management</a>, this spending is going to surge further.</p><p>The leadership at these organizations understands that they should spend less on Warehousing operations, but is not aware of the real costs associated with it. Most leaders are unable to tell how much is their human resources cost per facility.</p><p>Lack of appreciation of true Warehousing operations costs is one of the main reasons for failure of most <a href="https://flevy.com/browse/stream/transformation">Business </a><a href="https://flevy.com/browse/stream/transformation">Transformation</a> programs. Without this knowledge, the leadership is unable to comprehend where the improvement areas lie and how much <a href="https://flevy.com/browse/stream/value-creation">value creation</a> can be achieved from those.</p><p>Ascertaining these costs warrants a clear approach, which many organizations lack. Most firms inquire about their operational costs from 3<sup>rd</sup> party Logistics (3PL) providers—by soliciting requests for quotations (RFQs). However, this does not give an idea of what these principal activities really cost. The most common approaches to Warehouse costing include:</p><ul><li><strong>Benchmarking</strong></li><li><a href="https://flevy.com/browse/flevypro/warehouse-costing-cleansheet-analysis-5509"><strong>Cleansheet Analysis</strong></a></li></ul><h3><strong>Benchmarking</strong></h3><p>The Benchmarking method uses a top-down approach to analyze costs based on industry benchmarks. However, accessibility of benchmarks at lower levels is hard to access, since benchmarks available for comparison are predominantly at high levels—e.g., Total Warehouse Cost as a proportion of Cost of Goods Sold. Industry Benchmarking fails to take into consideration distinct product or service offerings.</p><h3><strong>Cleansheet Analysis</strong></h3><p>Cleansheet (or a Bottom-up Analysis) is a more comprehensive method to estimate Warehousing costs. It is a numerical approach to ascertain precise costs of critical components of Warehousing operations, including facility spread out, workforce, and equipment. This method facilitates in understanding where the cost exceeds and how it can be eliminated.</p><p>The focus of the Cleansheet Analysis is on determining the lowest possible cost of each major element, and comparing it with the actual cost being paid. Identifying the lowest costs of major elements allows the organization to determine the most problematic areas and confront major cost inconsistencies.</p><p>The Cleansheet Analysis comprises of 3 main steps:</p><ol><li><strong>Ascertain Critical Parameters</strong></li><li><strong>Perform Bottom-up Calculations</strong></li><li><strong>Determine Ideal Throughput Metrics</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/warehouse-costing-cleansheet-analysis-5509"><img src="https://flevy.com/blog/wp-content/uploads/2021/02/Cleansheet-Analysis.png" alt="" width="595" height="450" /></a></p><p>Let’s dig a bit deeper into the initial step.</p><h3><strong>Ascertain Critical Parameters</strong></h3><p>The first step of the Cleansheet Analysis entails scoping the Warehousing facility’s configuration, work, team, volumes, and orders. Specifically, this includes evaluating:</p><ul><li>The workforce, accountability distribution, workloads.</li><li>The actual warehouse activity levels.</li><li>The volumes.</li><li>The volume drivers—number of SKUs, order patterns, order lines.</li></ul><p>Interested in learning more about the steps to using a <a href="https://flevy.com/browse/flevypro/warehouse-costing-cleansheet-analysis-5509">Cleansheet Analysis</a>? You can download <a href="https://flevy.com/browse/flevypro/warehouse-costing-cleansheet-analysis-5509">an editable PowerPoint presentation on <strong>Warehouse Costing: Cleansheet Analysis</strong> here</a><span style="text-decoration:underline;"> </span>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3>Do You Find Value in This Framework?</h3><p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</p><blockquote><p>“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</p></blockquote><p>– Bill Branson, Founder at Strategic Business Architects</p><blockquote><p>“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</p></blockquote><p>– David Coloma, Consulting Area Manager at Cynertia Consulting</p><blockquote><p>“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”</p></blockquote><p>– Michael Duff, Managing Director at Change Strategy (UK)</p></div>How to Use the Porter's Value Chain in Identifying Cost Savings and Differentiation Opportunities?https://globalriskcommunity.com/profiles/blogs/how-to-use-the-porter-s-value-chain-in-identifying-cost-savings2020-02-26T13:59:01.000Z2020-02-26T13:59:01.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028311877,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028311877,original{{/staticFileLink}}" alt="8028311877?profile=original" width="300" /></a>The Value Chain concept, first described by Dr. Michael Porter in 1985, is a series of actions that a firm—in a specific industry—accomplishes to produce a valuable product or service for the market. The value chain notion visualizes the process view of an organization, perceiving a manufacturing or service organization as a system comprised of subsystems of inputs, <a href="https://flevy.com/browse/stream/transformation">transformation</a> processes, and outputs.</p><p>Another way to define the Value Chain principle is, “transforming business inputs into outputs, thereby creating a value much better than the original cost of producing those outputs.” These inputs, processes, and outputs entail acquiring and utilizing resources—finances, workforce, materials, equipment, buildings, and land.</p><p>An industry Value Chain includes the suppliers that provide the inputs, creation of products by a firm, distribution value chains, till the products reach the customers. The way Value Chain activities are planned and executed determines the costs and profits.</p><p>Value chains consist of set of activities that products must undergo to add value to them. These activities can be classified into 2 groups:</p><ul><li><strong>Primary Activities</strong></li><li><strong>Secondary Activities</strong></li></ul><p>Primary activities in <a href="https://flevy.com/browse/flevypro/strategy-classics-porters-value-chain-4058">Porter's Value Chain</a> are associated with the production, sale, upkeep, and support of a product or service offering, including:</p><ul><li>Inbound Logistics</li><li>Operations</li><li>Outbound Logistics</li><li>Marketing and Sales</li><li>Service</li></ul><p><strong> </strong>The secondary activities and processes in Porter’s Value Chain support the primary activities. For instance:</p><ul><li>Procurement</li><li>Human resource management</li><li>Technological development</li><li>Infrastructure</li></ul><h3><strong>Value Chain Analysis Benefits</strong></h3><p>The analysis of a Value Chain offers a number of benefits, including:</p><ul><li>Identification of bottlenecks and making rapid improvements</li><li>Opportunities to fine-tune based on transforming marketplace and competition</li><li>Bringing out the real needs of an organization</li><li>Cost reduction</li><li>Competitive differentiation</li><li>Increased profitability and business success</li><li>Increased efficiency</li><li>Decreased waste</li><li>Delivery of high-quality products at lower costs</li><li>Retailers can monitor each action throughout the entire process from product creation to storage and distribution to customers.</li></ul><h3><strong>Value Chain Analysis (VCA) Approach</strong></h3><p>Businesses seeking competitive advantage often turn to Value Chain models to identify opportunities for cost savings and differentiation in the production cycle. The <a href="https://flevy.com/browse/flevypro/strategy-classics-porters-value-chain-4058">Value Chain Analysis (VCA)</a> process encompasses the following 3 steps:</p><ul><li><strong>Activity Analysis</strong></li><li><strong>Value Analysis</strong></li><li><strong>Evaluation and Planning</strong></li></ul><p><a href="https://flevy.com/browse/flevypro/strategy-classics-porters-value-chain-4058"><img class="aligncenter size-full wp-image-6405" src="http://flevy.com/blog/wp-content/uploads/2020/02/Porters-Value-Chain.png" alt="" width="1200" height="1200" /></a></p><h3><strong>Activity Analysis</strong></h3><p>The first step in Value Chain Analysis necessitates identification of activities that are essential to undertake in order to deliver product or service offerings. Key activities in this stage include:</p><ul><li>Listing the critical processes necessary to serve the customers—e.g., marketing, sales, order taking, distribution, and support—visually on a flowchart for better understanding.<ul><li>This should be done by involving the entire team to gather a rich response and to have their support on the decisions made afterwards.</li></ul></li><li>Listing the other important non-client facing processes—e.g., hiring individuals with skills critical for the organization, motivating and developing them, or choosing and utilizing technology to gain competitive advantage.</li><li>This stage also entails gathering customers’ input on the organization’s product or service offerings and ways to continuously improve.</li></ul><h3><strong>Value Analysis</strong></h3><p>The second phase of the Value Chain Analysis necessitates identifying tasks required under each primary activity that create maximum value. This phase is characterized by:</p><ul><li>Ascertaining the key actions for each specific activity identified during the first phase.</li><li>Thinking through the "value factors"— elements admired by the customers about the way each activity is executed.<ul><li>For example, for the order taking process, customers value quick response to their call, courteous behavior, correct order entry, prompt response to queries, and quick resolution of their issues.</li></ul></li><li>Citing the value factors next to each activity on the flowchart.</li><li>Jotting down the key actions to be done or changes to be made to under each Value Factor.</li></ul><p>Interested in learning more about the other phases of the Value Chain Analysis Approach? You can download <a href="https://flevy.com/browse/flevypro/strategy-classics-porters-value-chain-4058"><u>an editable PowerPoint on <strong>Strategy Classics: Porter’s Value Chain</strong> here</u></a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Consumer Vehicle Telematics: A Paradigm Shift in Transport & Logisticshttps://globalriskcommunity.com/profiles/blogs/consumer-vehicle-telematics-a-paradigm-shift-in-transport-amp2019-04-15T06:13:46.000Z2019-04-15T06:13:46.000ZKBV Researchhttps://globalriskcommunity.com/members/KBVResearch<div><p><strong>All about Consumer Vehicle Telematics</strong></p><p><a href="https://www.kbvresearch.com/consumer-vehicle-telematics-market/">Consumer vehicle telematics</a> is the technology and services meant for easy transmission of communication within passenger cars in real time. These services include in-car consumer services, GPS navigation, traffic, local search (e.g. gas stations, restaurants) and concierge services. The growth in the telematics marketplace is driven by the growing number of vehicle safety and security regulatory requirements. Telematics is a new automobile communication technology industry that combines wireless audio and visual data that offer safety, information, productivity, and entertainment services to drivers and passengers in a specific location.</p><p><a href="{{#staticFileLink}}8028287487,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028287487,original{{/staticFileLink}}" class="align-center" alt="8028287487?profile=original" /></a></p><p><strong>Why deploy Consumer Vehicle Telematics?</strong></p><p>Increased use of mobile communications has provided insurers with the means to build a mutually beneficial relationship with policyholders. This has been more evident in the automotive insurance sector, which has witnessed advances in the communication or telematics segment of machine-to-machine (M2 M), generating data that helps to assess risks and rewards for policyholders living up to safe driving practices. Telematics and associated analysis tools are expected to contribute to streamlining and automating claim processes by triggering and alerting real-time. This would help greatly in reducing expenses for the insurers and is capable of driving the consumer telematics demand significantly. Automobile manufacturers provide connected vehicle services to consumers, which mainly include GPS, emergency notifications, roadside assistance, etc.</p><p><strong>What is the Original Equipment Manufacturers (OEM) Deployment Mode?</strong></p><p>An OEM is a manufacturer that produces products sold under its own name by other companies. It is not surprising that telematics solutions are becoming popular between the ability to track overall equipment usage and to monitor engine data for more proactive maintenance. Telematics solutions arm contractors and OEMs with strong insights to improve daily operations and manage fleets more efficiently. To augment user adoption and satisfaction rates, even more, OEM can influence new third-party solutions that wholly comprehend user data – catapulting the years of development that takes OEM to set-up an in-house telematics solution performing the same function.</p><p><strong>Consumer Vehicle Telematics and Infotainment</strong></p><p>Telematics and infotainment seem to be in an automobile collision path. The terms themselves are confusing. The combination of telecommunications and IT, mainly wireless communication, refers to telematics. The information and entertainment combination is understood as infotainment. Vehicle infotainment systems are a combination of software and hardware to provide information and entertainment features, such as GPS navigation, video player, streaming music, SMS, hands-free, USB and Bluetooth connectivity, internet in cars and Wi-Fi.</p><p><strong>Industries and Consumer Vehicle Telematics</strong></p><ul><li><strong>Cars (Personal & Rental)</strong></li></ul><p>Car rental companies and cab service providers use telematics software and devices as this help them collect all the data streaming via the asset from the distance, such as, for fuel consumption, machine health, diagnostic information, fault codes, idle time, etc. Telematics provided unprecedented volumes of driver performance data to fleet managers, allowing for detection and handling of unwanted behaviors–including heavy braking, hard cornering, and aggressive accelerations. All of these factors are monitored by in-cab telematics systems, which directly send data to fleet managers for evaluation.</p><ul><li><strong>Government Agencies</strong></li></ul><p>Telematics provides the automotive sector with functionality and risk assessment data that enables driving to be safe. Governments have an important role to play in making telematics a mandatory requirement for car industries, because they can avoid the number of road accidents, road jams, over-velocities, etc. by means of telecommunications.</p><p>Government organizations may use telematics data for a variety of applications such as accident statistical collection, regulatory information, retrieval of safety data and improved road construction. Mandates from the government and similar measures already provide the needs for telematics systems. Hand-free mobile telephone mandates are rapidly increasing due to driver difficulties. Low-end telematics with a voice user interface and radio system integration will probably be the preferable solution. The government also supplies the collection of electronic tolls, road, and active safety information.</p><p><strong>Consumer Vehicle Telematics - In a Nutshell</strong></p><p>The captured data can prevent engine failures and take preventive maintenance. For the planning of future maintenance the collected data is used. The technology of self-driving will change the transportation system. Most people have been driving or relying on third-party services to move around and ship their purchases. In the next five years, a company that must remain competitive needs to upgrade to major telematics innovations. The development of driverless vehicles for the transit of purchased products is one of the innovations. The <a href="https://www.kbvresearch.com/consumer-vehicle-telematics-market/">Consumer Vehicle Telematics Market</a> is projected to grow at a CAGR of 30.4% during the prediction period.</p><p>As proof of trade transactions, companies use the photo reporting tool. Manual stamping of the location data is no longer necessary to demonstrate the completion of the transaction. Advanced technology tools take photos that they subsequently send to the reporting system in order to prove a job completion. Telematics devices are equipped with a predictive servicing feature that can diagnose any vehicle malfunction and warn drivers to take immediate measures. For a certain period, diagnostic tools can monitor the engine of the vehicle and its state.</p><p><strong>Click Here For Free Insights:</strong> <a href="https://www.kbvresearch.com/news/consumer-vehicle-telematics-market/">https://www.kbvresearch.com/news/consumer-vehicle-telematics-market/</a></p><p><strong>Visit here for Annual Subscription Plan:</strong> <a href="https://www.kbvresearch.com/subscription-model/">https://www.kbvresearch.com/subscription-model/</a></p></div>