5 Keys to Coping with Complexity in Modern Logistics

Posted by Brian Hoey on Jan 22, 2019 9:00:00 AM

When you play chess, you’re supposed to think several moves ahead. This means that whenever you move one of your pieces, you should be anticipating the possible moves that your opponent will make in response, and what you’ll do in response to your opponent’s next moves. Since at each stage there are multiple possibilities, the possible scenarios you need to keep in your head at any given time begin to multiply pretty quickly. And yet, for each scenario it’s imperative to be able to look at the entire board in your mind and consider all of the hazards and opportunities that present themselves. In this way, it’s a little bit like logistics planning.

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Topics: Logistics 4.0, Transportation Management

Picking the Right Supply Chain Technology: Industry 4.0 Edition

Posted by Brian Hoey on Jan 17, 2019 9:00:00 AM

Plenty has been written on the perils and best practices that come with selecting the right technology for your business. Usually, businesses will be told to look at online reviews, to do their due-diligence on the provider to make sure that they deserve the trust that’s being placed in them, and to be conscious of what the typical pricing structures are within the relevant industry. This is all excellent advice, but it might not directly speak to the most important questions being considered by businesses. Why? Because while evaluating an IT solution is, in some ways, just like evaluating any other product, it’s also markedly different in others. Specifically, it requires businesses to think not just practically but conceptually, considering the long-term, transformative implications of a given piece of software.

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Topics: Industry 4.0, Digitization

Are Your Demand Forecasts Data-driven?

Posted by Brian Hoey on Jan 15, 2019 9:00:00 AM

Let’s take a second to compare two hypothetical World Cup forecasts. Both forecasts are trying to determine who the likely winner of the contest will be, but their methods differ fairly radically. The first forecast starts out with team rosters, facts and figures, and all manner of statistics pertaining to the various players and teams. Based on those facts and figures, a statistician begins to derive and weight a set of probable outcomes. Those outcomes are sent on to a human prognosticator (an expert in the sport, perhaps a former player or coach or a newspaper commentator) who uses his experience and judgment to tweak the probabilities handed down to him by the statistician. The stats think that a particular player on the French team will age poorly, but the prognosticator thinks otherwise, and changes the predictions accordingly. After this first round of edits, the predictions are passed on to the next editor, who brings her own experience to bear, changing the projected outcomes yet again.

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Topics: Demand Capacity Planning, Advanced Analytics

5 Keys to Successful Demand Capacity Planning

Posted by Brian Hoey on Jan 10, 2019 9:00:00 AM

Let’s say you’re a freelance writer. You’re trying to grow out your list of clients and get some more work, but you don’t want to commit to doing more work than you can actually handle. So, you sit down to analyze your previous work habits. How many words did you write per hour on average? Did the number of words vary by project type or industry? How many hours are you willing to work each week? How much overtime can you work before you become burned out? With these considerations, you’re able to figure out roughly how much demand you can meet. In this way, you optimize your earning potential and utilize your work hours in the most efficient way.

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Topics: Demand Capacity Planning

5 Benefits of Supply Chain Integration

Posted by Brian Hoey on Jan 8, 2019 9:00:00 AM

In baseball, the pitcher and the catcher must communicate via signs in order to implement a strategy to get the batter out. Depending on the strategy, the various fielders may need to position themselves closer to or farther away from home plate (if the pitcher is trying to induce a ground ball out or a fly ball out, for instance), which means that the strategy must be agreed upon beforehand and disseminated amongst the entire squad—not just the pitcher and the catcher. Picture the alternative: the pitcher decides on his own what approach to take, and the catcher is stuck trying to catch whatever is thrown at him without any advanced notice; meanwhile, the fielders don’t know what to expect, so they’re not able to position themselves appropriately. As a result, a batted ball is likely to result in chaos. 

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Topics: Lean Manufacturing, Advanced Analytics

Can Industry 4.0 Prevent Supply Chain Disruptions?

Posted by Brian Hoey on Jan 3, 2019 9:00:00 AM

Let’s say you’re trying to optimize your morning commute. Each day, you leave your house in the morning and walk to the train station, stopping by one of a few nearby coffee shops on the way to get your requisite dose of caffeine. This system works okay as it is, but because the coffee shops are sometimes crowded and the trains are sometimes late there is an overly-high level of variability in the length of time it takes to get from your front door to your office—meaning that you sometimes arrive earlier or later than you intended. To combat this variability, you download an app that gives you real-time notifications about train arrival times (so that you can adjust accordingly if a particular train is running late) and another app that approximates how crowded any given coffee shop is based on online check-ins. In this way, you can avoid the most crowded coffee shops and try to work around late trains, leading to a more stable commute time.

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Topics: Industry 4.0, Disruptions

5 Supply Chain Trends to Watch in 2019

Posted by Brian Hoey on Jan 1, 2019 9:00:00 AM

In 1963 the National Council of Physical Distribution Management was created to help give visibility to the emerging field of supply chain management. In the following decades, records keeping and other traditionally manual processes would become the province of newly-emerging computer technology, leading to significant changes in the industry. In the ‘80s, the council changed its name to the Council of Logistics Management to reflect the industry’s increasingly nuanced view of the complex process of sourcing raw materials for production and distributing finished products to customers. Supply chain management as a field went through plenty of change during that span, including the continued rise of computers as a tool, just as it's going through big changes now with the advent of Industry 4.0. Below, you’ll find our predictions for what might change about supply chain management in the coming year.   

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Topics: Industry 4.0, Supply Chain Logistics

The Benefits of Industry 4.0 in Production Planning

Posted by Brian Hoey on Dec 27, 2018 9:00:00 AM

Let’s say you have to schedule a medium-sized meeting with some of your coworkers. If you’re a traditionalist who likes to do this kind of scheduling by hand, you’ll first need to brainstorm a list of which people (i.e. which creative and organizational resources) will need to be in attendance. Then, you’ll have to pick a time that works for you, and check with each person on the list to see if that time also works with their schedules. In the extremely likely event that the time does not work for everyone, you’ll need a master list of everyone’s availabilities so that you can find a time slot that works for everyone. Or, if not everyone, then at least the largest possible number of vital attendees. 

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Topics: Industry 4.0, Planned Production Programs

How Digital Shipping Can Lower Logistics Costs

Posted by Brian Hoey on Dec 25, 2018 9:00:00 AM

If you sat down to compare the experience of taking a cross country road trip now vs. thirty years ago, what might come to mind? Probably, your first thought would be about how the rise of GPS systems (and, relatedly, smartphones) had made navigation much easier. Gone are the days when drivers need to purchase physical maps and chart their courses by hand. You might also think about the ways in which modern cars are better suited to this kind of journey, often featuring built-in GPS systems, Bluetooth hookups for playing music or receiving navigational instructions from your iPhone, and improved safety features like alerts if you're drifting out of your lane. All of this is undoubtedly true, but do all of these convenience-adding features also make traveling cheaper? 

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Topics: Digitization, Transportation Management

Route Planning in the Era of Logistics 4.0

Posted by Brian Hoey on Dec 20, 2018 9:00:00 AM

Over the course of human history, many of our most critical technological advances have been put to use in helping people and goods get from Point A to Point B more effectively. Take air travel, for instance: only a few years ago, most travelers needed travel agents in order to cut through the complexity involved in bundling together connections and return flights in the most sensible manner. Cut to the modern day, and a simple Google search can give you the times, connections, and prices for your various options based on your desired travel dates and destinations. Not only that, but once you’ve booked your travel itinerary, you can check in online (rather than at the airport), receive your boarding passes via e-mail, and receive alerts about your flight on your phone. All of sudden, life as a traveler is about connectivity and convenient digital workflows.

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Topics: Transportation Management, Supply Chain Logistics