Saturday, April 7, 2018

Supply Chain Industrial Engineering and Cost Reduction/Management Ideas

Supply Chain Operational Excellence

Supply Chain First Design - Adopting Evolving Technologies - Continuous Productivity Improvement - Capacity Adjustments -  Operations (Quantity) Planning - Operations Execution

Supply Chain Industrial Engineering

Supply Chain Industrial Engineering Focuses on adopting evolving technologies, continuous productivity improvement apart from contributing it first design of the supply chain to ensure high productivity in the first design itself.

Supply Chain Industrial Engineering -  Presentation Video


Large number of articles are available on supply chain cost reduction and productivity improvement. The subject of supply chain industrial engineering can be developed out of them. Subjects like manufacturing systems industrial engineering, product design industrial engineering, maintenance systems industrial engineering, information systems industrial engineering have to be developed by IE academicians to give clarity to the profession of industrial engineering. 

Adopting new technologies and improving productivity of those technologies is an important function that gives powerful scope to industrial engineers to contribute to the growth of companies and that of economies.

Supply Chain Cost Reduction

Abe Chaves January 21, 2016

Cost reduction tips for your strategic sourcing contracts

Manage your suppliers
Reducing supplier costs - McMillan-Scott

Cost Reduction Strategies in Supply Chain Management
by Kevin Johnston

Reducing operating costs through procurement transformation and strategic sourcing

Article February 2013
The power of successful supplier collaboration
By Jehanzeb Noor, Aurobind Satpathy, Jeff Shulman, and Jan Wüllenweber

Three Major Areas for Supplier Cost Reduction and Management
Posted on April 10, 2013 by Floyd Talbot

The 100 biggest U.S. manufacturers spent 48 cents out of every dollar of sales in 2002 to buy materials, compared with 43 cents in 1996, according to Purchasing magazine’s estimates. Businesses are increasingly relying on their suppliers to reduce costs, improve quality, and develop new processes and products faster than their rivals’ vendors can.

The Japanese supplier-partnering model is alive, well, and flourishing—not just in Japan but also in North America.

Building Deep Supplier Relationships
Jeffrey LikerThomas Y. Choi

Purchasing and Supply Chain Management

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Cengage Learning, 17-Mar-2015 - Business & Economics - 888 pages

Providing a solid managerial perspective, PURCHASING AND SUPPLY CHAIN MANAGEMENT, 6e draws from the authors' firsthand experiences and relationships with executives and practitioners worldwide to present the most current and complete coverage of today's supply management process. The text includes critical developments from the field, such as cases from emerging healthcare and service industries, procure-to-pay redesign, supply risk, innovation, sustainability, collaboration, and much more. Students examine key changes in supply management and the impact of the global economy and ongoing business uncertainty on continuous cost and value management across the supply chain. Numerous real-world cases and captivating examples help students gain contextual insights and knowledge into the strategies, processes, and practices of supply management--giving these future managers a thorough understanding of the impact that purchasing and supply chain management have on the competitive success and profitability of today's organizations.
Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.

strategy+business: Corporate Strategies and News Articles on Global Business, Management, Competition and Marketing
January 1, 1997 / First Quarter 1997 / Issue 6 (originally published by Booz & Company)
Setting Supplier Cost Targets: Getting Beyond the Basics

Oil companies scrutinizing suppliers to cut costs
Published  13.04.15

Surviving Supply Chain Integration: Strategies for Small Manufacturers

Committee on Supply Chain Integration - Board on Manufacturing and Engineering Design,
Commission on Engineering and Technical Systems, National Research Council, NATIONAL ACADEMY PRESS, Washington, D.C.

5 ways to improve suppliers value and performance
Monday, December 1, 2014 , business management, by Rich Rafdahl

Supply Chain Productivity Improvement

Productivity, Efficiency and Global Effectiveness
By Lora cecereFebruary 1, 2017
Supply chain productivity

In this episode of Straight Talk with Supply Chain insights, Lora and Helen discuss the halt of the Third Industrial Revolution and how innovating processes along with technology will drive the effectiveness of value networks as related to the Supply Chain Shaman blog post: Late Night Thoughts on Productivity, Efficiency, and Global Supply Chain Effectiveness.

Straight Talk With Supply Chain Insights – Podcast episode #206

The 3 Pillars of Supply Chain Productivity

Supply chain interface problems affecting productivity
Article (PDF Available)  in International Journal of Logistics Systems and Management 18(4):pp. 415-435 · July 2014

Supply Chain Management and Productivity Improvement Cluster
The Supply Chain Management and Productivity Improvement (SCMPI) Cluster develops emerging technologies and capabilities in crucial areas of global logistics network operations.

The Impact of Supply Chains on Firm-Level Productivity
Juan Camilo Serpa, Desautels Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada
Harish Krishnan, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada

The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power

Logistics ‐ a productivity and performance perspective
Alan Stainer (Head of Engineering Management, Middlesex University, London, UK)
Provides a critique of the present state of the art of productivity and performance measurement and management in logistics. The nature of logistics makes normal measures of productivity, based on an output/input concept, not always appropriate. Indicator or proxy approaches can be more suitable and would relate the quality of the system to total cost, complementing conventional total productivity thinking.

Calculating the True Cost of Productivity
Labor is frequently the dominant cost of a facility, no matter where it is located within the U.S.
August 3, 2017
This white paper demonstrates two calculations that contribute to calculating the true cost of productivity—labor costs and throughput—and details the potential costs of worker liability insurance and downtime. It also shows how an investment in dynamic storage and retrieval systems can impact productivity in three areas: reduced labor costs, improved throughput and decreased liability.

5 ways to boost productivity in your Supply Chain
ByMarc Wins
November 3, 2016

How to Maximize Supply Chain Productivity and Management of Freight Costs
by Joseph DeBenedetti
Supply chain efficiency has the power to make or break a business, with fine-tuned systems translating into a competitive advantage in the marketplace.

The Deceptive Simplicity of Boosting Productivity in Supply Chains
May 6, 2016 | Articles, Supply Chain | 0 comments

Productivity is a deceptively simple concept. For a supply chain, as for other functions, productivity is the ratio of what you get out to what you put in. This “output versus input” definition covers achievements of the workforce, results from the use of equipment, time spent (as in the hours needed to manufacture a product) and return on capital. However, output must also be valuable, generating value in its own right or helping an organization to achieve a valid objective.


Interesting Article - HBS
Achieving Supply Chain Productivity

Forget traditional supply chain management. Managers must be responsible for the earning power and productivity of the assets in their trust, not just cost control, argues Jonathan Byrnes.

Who Knew Increasing Supply Chain Productivity Was This Easy?
03/08/2016 - 12:09pm

Tips for Navigating Productivity-inhibiting MRO Supply Chain Silos
By George E. Krauter
November 09, 2017 at 10:24 AM

Enhance productivity using supply chain management in automobile industry
Author:  Neeraj Kumar Sharma
Subject Area:  Physical Sciences and Engineering

The impact of RFID technology utilisation on supply chain productivity and organisational performance
Kenneth W. Green Jr. Related information1 College of Business Administration, Department of Management and Marketing, Sam Houston State University, Box 2056, Huntsville, TX 77341?2056, USA.
, Dwayne Whitten Related information2 Mays School of Business, Information and Operations Management Department, Texas A&M University, Mail-stop 4217, College Station, TX 77843, USA.
, R. Anthony Inman Related information

MH&L Staff | Apr 11, 2017
Big-data analytics and other technologies are dramatically improving productivity in the global supply chain, according to a recent survey by Clear Peak Supply Chain Advisory Council.

Logistics Productivity Indicator – Assessing Supply Chain Performance
08/11/2017, 3:05 pm

Cost Management in Supply Chains pp 213-232 | Cite as

Improving Supply Chain Productivity Through Horizontal Cooperation — the Case of Consumer Goods Manufacturers

Supply Chain Commentary: Boost Productivity, Efficiency, and Security in Your Warehouse
April 03, 2018 | Isaac Kohen

Case Study Search
Welcome to Supply Chain Database
Search through the case studies by using the filters below according to category, the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerhsips. You can also scroll down to see the entire collection of supply chain case studies.Start browsing the database to find out how large corporates such as General Electric, BASF, or IKEA are partnering with their suppliers to improve energy productivity.

Search through the case studies by using the filters below according to category (i.e. activity type, such as audits or purchasing approaches), the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerships (e.g. the Value Chain Scope 3 standard). You can also scroll down to see the entire collection of supply chain case studies.

Activity types

HFC Technology
Guest Column | November 22, 2017
The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power


Best practices to improve Supply Chain productivity
ByMarc Wins
April 5, 2018

Year Wise Articles and Papers

Increasing Productivity Through Your Supply Chain

Boosting Innovation and Productivity through Supply Chain Management in Highway Construction


LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA World

Josef Packowski
CRC Press, 26-Nov-2013 - Business & Economics - 493 pages

Delivering excellent service to all customers is the key imperative for many sustainable businesses. So why do so many supply chains struggle to fulfill customer requirements at competitive costs? The answer is simple: traditional supply chain planning, which was tailored to a predominantly stable and predictable business environment, cannot handle the new challenges in the world of variability, uncertainty, complexity, and ambiguity—the VUCA world.

Companies can either accept the drawbacks that often result in high inventories, poor asset utilization, and unsatisfactory customer service or, they can change their view of the fundamental approach to supply chain management. LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today’s VUCA World introduces a new paradigm and a new approach to managing variability, uncertainty, and complexity in today’s planning processes and systems.

Introducing a cutting-edge supply chain management concept that addresses current problems in the process industry's supply chains, the book presents powerful methods developed by leading research institutes, process industry champions, and supply chain experts. It explains how readers can change their approach to the fundamental planning paradigms in a manner that will help their organizations achieve higher levels of responsiveness, improved levels of customer service, and substantial increases in cost-efficiencies.

This holistic practitioner’s guide describes how to establish the right accountabilities for performance management and also provides a set of meaningful metrics to help measure your progress. Supplying detailed guidelines for transforming your supply chain, it includes first-hand reports of leading organizations that have already adopted some of the facets of this paradigm and used the relevant instruments to achieve unprecedented improvements to customer service, supply chain agility, and overall equipment effectiveness.

5 Ways to Increase Productivity and Performance in Your Supply Chain

Focusing on tactics that will increase a supply chain’s productivity is essential to earn adequate profits through achieving positive customer satisfaction. Apart from improving products and processes, there are some other very effective ways to do this.

Efficient Communication: Communicate with your supply chain partners  in a clear and concise manner that defines supply chain goals and the methods to achieve those goals. This communication is crucial to a supply chain’s operations and productivity. By scheduling meetings devoted to collaborative problem-solving, management is able to make essential changes regarding performance. This diligent problem-solving ensures a unified understanding of productivity and operations that will facilitate open communication between supply chain partners.

Development of Procedure Standards: The development of procedure standards reduces error within the supply chain and saves both time and money. Focus on the reduction of probable variation in areas such as receiving, quality control, shipping, shift scheduling, and facilities management. This is one of the many ways to increase collective productivity and establish procedure standards.

Determination of Importance: Continuous improvement to supply chain productivity depends on the areas where attention is given.  Measuring outcomes in critical areas that drive business, for example: Safety, Service/On-Time Delivery, Inventory Accuracy/Turns, Productivity, Cost per Unit/Total Landed Cost, Product Damage/Claims, Customer Satisfaction

Engage, Align, and Empower Workforce: Encourage supply chain partners to focus on the core skills of employees and empower them. This focus will foster confidence and result in a continuous increase of productivity. Gaining the buyin of workforce makes it possible to create new ways to engage and align, to ultimately increase productivity. Be sure to define supply chain’s goals in a clear and concise method that will allow employees and management of supply chain partners to take advantage of existing and future opportunities for improvement.

Construct a Powerful Training Program: First, formulate a comprehensive plan to increase productivity, reduce costs, and improve customer service and satisfaction levels. Then tie an incentive plan into the supply chain’s core mission, a critical element to building a performance-based approach. Train supply chain partners and their employees in implementing the new plan.  This constructive training will drive a successful organization and improve supply chain productivity.

Increasing productivity within the supply chain is achieved through a top down approach – everything rises and falls on the supply chain leader. Leaders must practice effective communication, create procedure standards, determine a hierarchy of importance, encourage empowerment of  the workforce of supply chain partners, and arrange powerful training programs. Management and employees of the supply chain leader have to first create and establish a performance-based culture within their company and then in its supply chain partner companies.
Adapted from


Labor management systems: Labor is a significant expense item in warehousing costs. A robust warehouse labor management system (LMS) can help you understand this expense. An LMS lets you  examine tasks such as receiving, put-away and processing at the individual level. You can evaluate performance elements more closely, isolate problem areas and make better decisions about training, staffing and management. It also enhances accountability for all employees, which often brings out their best performance.

Picking devices and technologies: Sometimes, the best order-picking alternative is an employee’s hands. At other times, a device that picks a whole layer of cases at a time could be economical  and much faster,  Some of these machines can double or triple picking volumes for the same time.  Hands-free voice picking devices are another fiscally friendly upgrade.

Cut down lighting costs: Warehouse energy bills can exceed $100,000 annually.  Today’s energy-efficient  lighting technologies offer brighter, greener and less expensive electricity alternatives.

A relighting project may demand upfront investment,  but provide saving up to 50 percent as soon as new lights are installed. These projects also could earn tax breaks or incentives from local governments and utilities. They also could reduce the expense of any carbon offset purchases your company plans to make.

Interleaving: In the average warehouse, forklift operators move between a couple of points such as a loading dock and storage racks. On the initial trip, these vehicles usually are full — and fully utilized. But they’re empty while returning, a process known as deadheading. Deadhead journeys can add up to countless empty miles and wasted operator time.

Interleaving rearranges workflow so forklift operators travel in a circular motion or some other route configuration, better using the traveling time between racks and loading docks. Interleaving designs vary significantly from facility to facility. And since most all facilities use forklifts, this growing practice deserves a closer look. Granted, it requires robust systems capacity and cooperative operators who will embrace the change. However, the ultimate payoff can be significant

There are some  more money-saving warehousing investments such as thermal-shrinking machines, financial gainsharing incentives and space utilization tools.

Adopted from

Supply Chain by Rajiv Saxena
Industrial Engineer's quarterly column about supply chain and logistics solutions (July 2011)

Ken Ackerman's Warehousing Fourm

Supply Chain Industrial Engineering -  Presentation Video


Updated 8 April 2018,  12 August 2016, 8 April 2013

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