2020-07-20
In today’s world, under the influence of global economic integration, logistics outsourcing, and online transactions, competition between enterprises has evolved into competition between supply chains, focusing on the development of suppliers from customers to suppliers. The companies in the global supply chain become the ones with the best operational efficiency.
The logistics management committee defines the supply chain as: the exchange of materials and information in the entire logistics process from the acquisition of raw materials to the delivery of finished products to end users; all suppliers, service providers and customers are connected in the supply chain . Based on this definition, the best supply chains in ten different industries are identified.
Defense industry
Northrop Grumman (Northrop Grumman)
Northrop Grumman’s largest customer is the US Department of Defense. In recent years, it has become a large defense company due to the development of Newport News, Litton Industries and TRW. In early 2003, the company signed a $9.6 million contract with the US Transportation Command of the Department of Defense to develop a set of tools that can reduce costs and improve the management of the defense transportation system during peacetime and war. The company worked with the military to improve the optimization of its method choices, better manage its limited assets, and obtain transportation needs from multiple sources. Its supply chain has always maintained the use of the latest technology and optimized management to ensure efficiency and customer satisfaction. In addition, the company also pays great attention to employee education and establishes affiliated universities to ensure the sustainable development of human resources.
Technology providers: i2 technology company, Manugistics Group Inc., SAP, SupplyPro, Yantra Corp.
Logistics providers: Bax Global, Con-Way, Eagle Global Logistics, FedEx, Landstar, Pilot Air Freight, Ryder System Inc., Yellow Corp..
Automotive industry
Ford Motor Company
Ford Motor Company mainly relies on its strong logistics and information flow in supply chain management. The three major automakers have concentrated their supply chain information and functions in a single global material manufacturing system, which gives Ford Motor Company suppliers a direct way to obtain real-time inventory and transportation information. Joseph Hinrichs, Executive Director of Material Planning and Logistics Department explained: “We let customers and suppliers enter our system, which ensures that their decisions are made based on real-time and accurate information.” Currently, the car is delivered to the agent. The time has been reduced by several days, the average time required to obtain raw materials and the number of personnel required to contact suppliers have been reduced. At the same time, the number of automobile assembly facilities and supply bases have been greatly reduced.
"Ford uses new technology to provide more accurate and timely information to manage our domestic and foreign business processes to achieve the '6 ∑'level of ability, and to provide customers with better information," Hinrichs said, "We want our information The flow can be extended to our series of suppliers and other service providers, thereby enhancing the efficiency of the entire supply chain.” For example, the “6 ∑” measures are mainly focused on reducing the recycling and transportation of surplus parts, and better To manage its smooth transportation. In total, these measures have saved Ford more than $1 million. Ford also pays attention to the distribution process of its repair parts. Compared with operating 8 huge distribution centers that store various parts, Ford plans to divide its parts inventory into 19 high-speed distribution centers that store high-use parts, and 3 large-volume storage centers that store raw materials such as metal sheets. A distribution center, and a small-capacity, small-volume distribution center that stores parts shipped in small packages.
Technology providers: EXE Technologies Inc., i2 Technologies Inc., Manugistics Gruop Inc., Oracle Corp., PeopleSoft, SAP, SSA Global, Vastera Inc.
Logistics providers: FedEx Supply Chain Services, Penske, Schneider Logistics, TNT Logistics, UPS.
Chemical Industry
British DuPont (E.I. du Pont de Nemours & Co.)
For the chemical industry giant DuPont, globalization is a strategic guarantee for the company to purchase the best resources from all regions of the world at the lowest total cost. John Campi, the company’s vice president of global procurement and chief procurement officer, explained, “The goal is to expand our A global supply base to provide global coverage and balance.” In order to achieve this goal, DuPont’s global procurement and logistics department includes three operation groups-expert center, regional supplier management and business unit/procurement site . The three operation groups work together to achieve the goal of providing complete and efficient procurement operations.
DuPont’s Global Logistics Advancement Department centralizes its logistics information in a database to improve the connection and visibility between shippers and carriers. The TransOval project provides a common platform for all transportation information. The company’s global logistics technology and process manager Jerry Reynolds said that DuPont recognizes that future logistics will rely heavily on the ability of its carriers to provide cargo transportation status through an Internet-based system. DuPont hopes that the improved logistics system can also help it better deal with inventory issues-especially by reducing the amount of safety stock required by the system. "The main benefit is that all our logistics information can be integrated into a database globally, and that people who need this information can obtain this information faster and more efficiently on a global scale."
Technology providers: Ariba Inc., Aspen Technology, Comergent Technologies Inc., G-Log, Manugistics Group, Inc., RedPrairie, SAP.
Logistics providers: Averitt Express, Con-Way, DHL, Estes Express, Exel, Schneider National, USF.
Consumer Goods Industry
Unilever, the Netherlands
Although trademarks are a source of vitality for a consumer goods company, for Unilever, the number of trademarks has become a burden. Due to the huge gains in the 1990s, Unilever, which represents famous trademarks such as Dove soap, Skippy peanut oil and Ben & Jerry ice cream, has created more than 1,600 of its own trademarks, but most of them are not profitable. Take up the company's logistics resources.
In 2000, the company issued a five-year growth plan to reduce the total number of trademarks to 400 by the end of 2004, achieving an annual sales growth of 5% to 6% and a 16% increase in operating profit. Unilever's logistics department is working to streamline its supply chain and improve the company's ability to achieve its ambitious growth goals. The company is reducing its nearly 30 warehouses into five powerful distribution centers, giving it the ability to send customer orders within a day.
In order to improve asset utilization, reduce inventory and improve services, Unilever adopts a strategy of collaborative planning, forecasting and replenishment with retail customers. Thanks to coordinated planning, forecasting and replenishment strategies, Unilever was able to reduce inventory by 10%, improve forecast accuracy by 10% and increase sales by 5%. "High accuracy in replenishment can only be achieved through order forecasting and improved supply chain visibility." Today, Unilever's logistics department is working hard to improve relations with retailers, better planning, and improve the timeliness and efficiency of operations Sex.
Technology providers: Adexa Inc., Agilisys, Finmatica, Global Exchange Services, Manugistics Group Inc., RedPrarie, SAP, SSA Global, Syncra Systems Inc., Vastera Inc..
Logistics provider: Exel, Transplace
Durable Goods Industry
Maytag Corp., USA
In the past, electrical equipment manufacturer Metag used trucks or railroads to ship 60% of its finished products to customers' distribution centers. Driven by the changes in the current retail environment and the improvement of supply chain management, Metag now delivers almost 70% of its export goods to retailers, builders and individual families through its regional distribution centers. In addition to its own products, Metag also sells appliances under the brands of Amana, Hoover and Jenn-Air. According to John Nolan, the company’s vice president of logistics, Metag’s five main aspects of logistics management are: supply chain planning, customer order management, distribution operations, transportation and international services. "All other work must support these five aspects of work."
Last year, the new distribution network brought the company several million in revenue growth. This is mainly due to the increased supply rate through the system while reducing the delay time. Under the impact of new competitive pressures, rising research costs, the existence of various regulatory issues, and increasingly accelerated product development plans, more and more companies are beginning to seek and discover development opportunities with cooperative significance, even if We must cooperate with our competitors. For durable goods manufacturers like Metag, the secret of success lies in information sharing.
Technology providers: Adexa Inc., Comergent Technologies Inc., John Galt Solutions Inc., SAP.
Logistics provider: Exel, Public Logistics Inc.
Health care/pharmaceutical industry
Cardinal Health Inc., USA
Customer service drives Cartier Health, a major provider of products and services in the healthcare industry. Gerald Moultry, vice president of the company’s pharmaceutical distribution, said: “We do everything possible to ensure that any of our shipments will be free from errors.” A few years ago, one of the company’s facilities burned down, and Kadir Health took immediate action to transfer another facility. To complete the work to meet the customer's order requirements. "We are late, but we still guarantee that the customer gets the goods he ordered on the same day," Moultry said. According to Moultry, the mission of the company's business maintenance department is mainly to focus on the company's facilities. "We have set up special funds for the weather and all other accidents that we can think of to ensure that our products can be transported safely. After all, the health care products we ship are very important to people in need. "
On the company's website, customers can get information about 500,000 products from more than 3,000 suppliers. Customers can order, track and manage orders online, while being able to obtain real-time inventory status of the company's more than 50 distribution centers. Kadir Health also joined Novation, an online trading market, which can help participants manage and track orders for hundreds of thousands of medicines and their supplies.
Technology providers: Aether, LXE, SSA Global, Tecsys, Vistant.
Logistics providers: Cord Logistics, UPS.
Food and beverage industry
PepsiCo
Collaboration is a key element of PepsiCo's supply chain. For example, PepsiCo is a pioneer in the development of the store direct delivery model. The store direct delivery model reduces the storage steps in the process of purchasing fast turnover and large amounts of perishable goods such as soft drinks and snacks. The goods are directly delivered by the manufacturer to the store. Direct store delivery suppliers provide customers with free storage space, while being able to better manage their product sales and inventory.
In cooperation with the grocery chain Wegman, Pepsi and its Frito-Lay food division leased retail floor and shelf space from the grocery store. As a result, Pepsi is responsible for inventory management of its products in the Wegman store. By managing its own products in a retail environment, Pepsi can better balance the sales of its highly profitable Frito-Lay products while maintaining the sales of its high-speed but low-margin beverage products. At the same time, Pepsi America Co., Ltd. adopts a pre-sales strategy, which is a direct store delivery method where orders are placed before the delivery date. By combining wireless technology, Pepsi's sales managers in the United States can obtain orders online, and then upload them directly to the central ordering system at the headquarters from a remote place via wireless connection. This allows the delivery vehicle to perform operations more efficiently and accurately. Truck drivers can now track inventory, record delivery status and print invoices using wireless handheld printers.
Technology providers: i2 Technologies Inc., Insight, PeopleSoft Inc., Symbol Technologies, UCCnet.
Logistics providers: CH Robinson, Penske, Schneider National, Transplace
High-tech electronics industry
Dell
Despite the continued decline in the high-tech market, Dell announced a sales growth of 16% in the previous quarter. This is the sixth consecutive quarter that Dell has achieved double-digit revenue growth. Even more impressive is that the increase in sales has brought a 21% increase in profits. In general, Dell hopes that this year's sales will reach 40 billion U.S. dollars, a substantial increase from last year's 32 billion U.S. dollars. The secret of Dell's success is that there is no secret at all-the company has always insisted on supply chain optimization, operating along its direct model. The company produces more than 50,000 computers every day, but its inventory time is only 3 to 4 days, and most of its competitors need 20 to 30 days of inventory time. However, Dell is not satisfied with the current results and stagnates. "We are at the tip of the iceberg," said Dick Hunter, Dell's vice president of production management in the United States. "Most people think that Dell has reached the ultimate goal of supply chain management-3 days of inventory time. We disagree; we are there every day Efforts to keep the inventory time down. Our current goal is to reduce it to two days. In the long term, I believe we can reduce it even lower."
"Wal-Mart is too powerful?" asked the cover of the latest BusinessWeek issue.
If you are a Wal-Mart company, you can do whatever you want. A year ago, the retail giant recognized the EDI-INT AS2 standard, which directly led to 10,000 medium-sized suppliers adopting these communication protocols as a way to send and receive transaction data; its application of the UCCnet standard in consumer products in 2001 There has been a significant impetus between industries to achieve data synchronization; at the same time, Wal-Mart drove the application of barcodes in the retail industry nearly 20 years ago.
Wal-Mart is currently working to reorganize its supply chain-it requires its tens of thousands of suppliers to implement radio frequency identification tags on all pallets and containers within the next two years (its first 100 suppliers must implement it by February 2004). Even the US Department of Defense is following the actions of retailers. Soon after Wal-Mart announced its radio frequency identification instructions, the Department of Defense notified its top 100 suppliers to begin their own radio frequency identification plans. In fact, Wal-Mart is helping the Department of Defense develop its RFID implementation strategy.
Technology providers: Alien Technology, i2 Technologies Inc., iSoft Corp., Sterling Commerce, UCCnet, Verticalnet.
Logistics providers: ABF, CH Robinson, Exel, J.B. Hunt, Yellow Corp..
