Product fraud: not just in food supply chains
Your story "Consumer product fraud—how to stop it now" (Q2/2011) was a good, thought-provoking article.
Adulteration is not limited to just the food industry; it also affects chemicals and pharmaceuticals. I know a chemical company in Dubai that earned millions of dollars by selling fake chemicals. Once when I was discussing this with a few of their managers, they told me that [this practice] was not limited to their own company. They said there are pharmaceutical companies that manufacture fake generic drugs to earn millions of dollars.
I know that quite a lot of companies indulge in these kinds of nefarious activities to make millions of dollars in profits. They do not care for human health or for doing business ethically.
Radhakrishnan Pillay
Dubai, United Arab Emirates
Store SKU forecasts should guide manufacturers
I enjoyed the article "Are you a candidate for produceto- demand?" (Quarter 3/2011) and agree with James Cooke's comments on produce-to-demand being a better model than the traditional bulk "make-to-stock" model for some manufacturers. However, I would argue that forecasting by SKU (stock-keeping unit) at the store level, and having that information flow back through the supply chain (i.e., from the store to the distribution center to the manufacturer) would produce better results for both the manufacturer and the retailer, in contrast to the manufacturer creating its own forecast.
There is a book called Flowcasting the Retail Supply Chain, by André Martin, Mike Doherty, and Jeff Harrop, which goes into detail about this new method of forecasting. Some of your other readers may find this as interesting as I did.
Rob Dold
Account Executive, Fortna Inc.
Nashville, Tennessee, USA
Why it may be hard to get "a commanding view"
The article "A commanding view" (Quarter 3/2011) presents the reader with a number of concepts that make a great degree of logical sense. The science presented is not new but the adoption rate is slow. There could be several reasons for this, and I would think that many in the CSCMP community would benefit from understanding what contributes to the low adoption rate.
I can see four barriers to adoption:
Cost of implementation. It maybe the case that the necessary systems to reasonably enable a "commanding view" strategy are expensive to implement, and maybe the ongoing maintenance is expensive also.
Speed of implementation. Product lifecycles are getting shorter, with the bulk of sales occurring shortly after product launch. If the time taken to connect new supply partners and configure the system is lengthy, then this may limit the usefulness of adopting this strategy.
Complexity. It may be the case that there are insufficient numbers of people who are trained to implement and run these systems.
Reluctant partners. To enable this level of business intelligence, suppliers, carriers, and customers must be willing to share the necessary business intelligence data. I can see circumstances where suppliers lack sophistication and big customers simply say no to sharing point-of-sale data.
I would like to see an article that presents a real case, with before and after implementation performance numbers, and that talks about cost and speed of implementation together with the availability of information and people who are able to support this new environment.
Alan J. Bishop
Principal, Scoord
Franklin, Tennessee, USA
Confronted with the closed ports, most companies can either route their imports to standard East Coast destinations and wait for the strike to clear, or else re-route those containers to West Coast sites, incurring a three week delay for extra sailing time plus another week required to truck those goods back east, Ron said in an interview at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
However, Uber Freight says its latest platform updates offer a series of mitigation options, including alternative routings, pre-booked allocation and volume during peak season, and providing daily visibility reports on shipments impacted by routings via U.S. east and gulf coast ports. And Ron said the company can also leverage its pool of some 2.3 million truck drivers who have downloaded its smartphone app, targeting them with freight hauling opportunities in the affected regions by pricing those loads “appropriately” through its surge-pricing model.
“If this [strike] continues a month, we will see severe disruptions,” Ron said. “So we can offer them alternatives. We say, if one door is closed, we can open another door? But even with that, there are no magic solutions.”
Turning around a failing warehouse operation demands a similar methodology to how emergency room doctors triage troubled patients at the hospital, a speaker said today in a session at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
There are many reasons that a warehouse might start to miss its targets, such as a sudden volume increase or a new IT system implementation gone wrong, said Adri McCaskill, general manager for iPlan’s Warehouse Management business unit. But whatever the cause, the basic rescue strategy is the same: “Just like medicine, you do triage,” she said. “The most life-threatening problem we try to solve first. And only then, once we’ve stopped the bleeding, we can move on.”
In McCaskill’s comparison, just as a doctor might have to break some ribs through energetic CPR to get a patient’s heart beating again, a failing warehouse might need to recover by “breaking some ribs” in a business sense, such as making management changes or stock write-downs.
Once the business has made some stopgap solutions to “stop the bleeding,” it can proceed to a disciplined recovery, she said. And to reach their final goal, managers can use the classic tools of people, process, and technology to improve what she called the three most important key performance indicators (KPIs): on time in full (OTIF), inventory accuracy, and staff turnover.
CSCMP EDGE attendees gathered Tuesday afternoon for an update and outlook on the truckload (TL) market, which is on the upswing following the longest down cycle in recorded history. Kevin Adamik of RXO (formerly Coyote Logistics), offered an overview of truckload market cycles, highlighting major trends from the recent freight recession and providing an update on where the TL cycle is now.
EDGE 2024, sponsored by the Council of Supply Chain Management Professionals (CSCMP), is taking place this week in Nashville.
Citing data from the Coyote Curve index (which measures year-over-year changes in spot market rates) and other sources, Adamik outlined the dynamics of the TL market. He explained that the last cycle—which lasted from about 2019 to 2024—was longer than the typical three to four-year market cycle, marked by volatile conditions spurred by the Covid-19 pandemic. That cycle is behind us now, he said, adding that the market has reached equilibrium and is headed toward an inflationary environment.
Adamik also told attendees that he expects the new TL cycle to be marked by far less volatility, with a return to more typical conditions. And he offered a slate of supply and demand trends to note as the industry moves into the new cycle.
Supply trends include:
Carrier operating authorities are declining;
Employment in the trucking industry is declining;
Private fleets have expanded, but the expansion has stopped;
Truckload orders are falling.
Demand trends include:
Consumer spending is stable, but is still more service-centric and less goods-intensive;
After a steep decline, imports are on the rise;
Freight volumes have been sluggish but are showing signs of life.
CSCMP EDGE runs through Wednesday, October 2, at Nashville’s Gaylord Opryland Hotel & Resort.
The relationship between shippers and third-party logistics services providers (3PLs) is at the core of successful supply chain management—so getting that relationship right is vital. A panel of industry experts from both sides of the aisle weighed in on what it takes to create strong 3PL/shipper partnerships on day two of the CSCMP EDGE conference, being held this week in Nashville.
Trust, empathy, and transparency ranked high on the list of key elements required for success in all aspects of the partnership, but there are some specifics for each step of the journey. The panel recommended a handful of actions that should take place early on, including:
Establish relationships.
For 3PLs, understand and get to the heart of the shipper’s data.
Also for 3PLs: Understand the shipper’s reason for outsourcing to a 3PL, along with the shipper’s ultimate goals.
Understand company cultures and be sure they align.
Nurture long-term relationships with good communication.
For shippers, be transparent so that the 3PL fully understands your business.
And there are also some “non-negotiables” when it comes to managing the relationship:
3PLs must demonstrate their commitment to engaging with the shipper’s personnel.
3PLs must also demonstrate their commitment to process discipline, continuous improvement, and innovation.
Shippers should ensure that they understand the 3PL’s demonstrated implementation capabilities—ask to visit established clients.
Trust—which takes longer to establish than both sides may expect.
EDGE 2024 is sponsored by the Council of Supply Chain Management Professionals (CSCMP) and runs through Wednesday, October 2, at the Gaylord Opryland Resort & Convention Center in Nashville.
While the Council of Supply Chain Management Professionals' 2024 EDGE Conference & Exhibition is coming to a close on Wednesday, October 2, in Nashville, Tennessee, mark your calendars for next year's premier supply chain event.
The 2025 conference will take place in National Harbor, Maryland. To register for next year's event—and take advantage of an early-bird discount of $600**—visit https://www.cscmpedge.org/website/62261/edge-2025/.
**EDGE EARLY BIRD Terms & Conditions: Promotion is for the EDGE 2025 conference in National Harbor, Maryland. Offer valid for Premier and Basic Members only. Offer excludes Student, Young Professional, Educator, and Corporate registration types. Offer limited to one per customer. Offer is not retroactive and may not be combined with other offers. Offer is nontransferable and may not be resold. Valid through October 31, 2024.