The constant population grow, globalization and economic growth makes logistics a primary focus for business, especially big ones. Thomas Friedman said: “supply chaining” is fundamental as barriers to trade and interdependence are reduced across the globe.” That pretty much means that every day proper logistics are more fundamental to business to succeed and prosper. Fundamental changes across many areas of business, politics and the supply chain have “flattened” the world and led to an explosion of trade and global sourcing. The main issue about this new global challenges is that they add distance and time to the supply chain, those pretty much add cost, risk and complexity.
Many companies believe that they are not outsourcing properly compared to the competition, especially because of the lost savings. Many companies have troubles achieving their saving goals because of challenges divided in two areas mainly: * The potential savings were simply over-estimated: When calculating the expected cost of globally sourced products, companies frequently miscalculate or fail to consider a number of cost elements. * The company cannot yet execute a global supply chain well: In this situation, the company has in fact well-estimated a realistic total supply chain cost, but much of the savings slips away through problems in execution. Some of the specific areas where we frequently see challenges in global logistics execution include: Sub-optimal sourcing results, high inventories and lost sales, high costs for expedited freight, high levels of inbound lead-time variability between others.
Global logistics leaders are getting closer to the level of capabilities that lead to operational excellence, and which provide strong competitive advantage. The ten capabilities of global logistics leaders
1. Total Delivers Cost Management
Ability to analyse and predict the total supply chain costs from the source of...