In discussions around supply chain logistics in the past few years, some people have been describing the systematic increase in customer delivery expectations as the “Amazon Effect.” And it's certainly true that Amazon’s push towards faster and faster delivery turnarounds has had a huge impact not just on how (and how quickly) customers expect their items to be shipped, but on the way supply chains are administered around the globe. Where traditional shipping workflows might have required a few touches to get a given shipment from the manufacturer to the final destination Increased delivery speeds have increased the average number of touches, i.e. the number of legs in each journey.
Let’s say that you’re in charge of the omelet bar for a boutique hotel breakfast service. Guests line up, plates in hand, and when they reach the front of the line they let you know what type of omelet they’d like (egg vs. egg-white) and with what ingredients. On a slow day, you can cook the eggs as you go, but when the line starts to get longer it becomes incumbent upon you to start cooking the eggs in advance and add the extra ingredients (cheese, onions, peppers, etc.) as they’re ordered. When the line gets really long, you start adding cheese to a number of the pre-omelets, on the assumption that most people will want cheese. When the line gets even longer, you have a set of common omelet orders on the griddle ready to go.
In the past few years, sustainability has become a topic of considerable importance throughout the automotive industry. As the automotive supply chain becomes increasingly globalized, businesses are now more than ever faced with the Herculean task of managing not just the logistics and costs associated with a complex web of global suppliers, but with the environmental impact and long term sustainability of the associated businesses practices. While this process is often daunting, it has grown in importance to the point where manufacturers ignore it at their own peril. Even beyond supply chain considerations, many businesses are finding that discussions of sustainability bring up questions and dilemmas that they’ve never faced before, from deciding on acceptable trade offs between sustainability and profitability and uncovering areas where sustainability increases profitability, to developing new KPIs for managing vendors and suppliers.