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🚚 Transportation Strategies in Supply Chain Management

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  🚚 Transportation Strategies in Supply Chain Management 1. Direct Shipment Strategy   What it is: Goods move directly from supplier to customer without intermediate stops. Key Benefits: Faster delivery times Reduced handling and storage costs Lower risk of damage Challenges: Higher transportation cost per unit Not efficient for small shipments   2. Milk Run Strategy     What it is: A single vehicle collects goods from multiple suppliers or delivers to multiple customers in one trip. Key Benefits: Better vehicle utilization Reduced transportation costs Efficient for regular, small-volume pickups Challenges: Complex route planning Risk of delays affecting multiple stops        3. Cross-Docking Strategy What it is: Products are transferred directly from inbound to outbound transport with little or no storage. Key Benefits: Minimizes warehousing costs Sp...
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What is purchasing?

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What is purchasing? Purchasing is the transactional and operational activity of actually buying goods, services, or works from suppliers. It focuses on executing the acquisition—placing orders, agreeing on price and terms for that specific transaction, receiving the items, and processing payment In simple terms, the act of buying something that the organization needs right now (or very soon). Purchasing Areas 1. Personal purchase: The  consumer purchases for the consumption of themselves, then they fall into this very important category class. 2. Mercantile Purchasing:  Facilitated by middlemen for the intention of re-sale to meet others' requirements. 3. Industrial Purchasing:  It is organizational purchasing of industrial materials through a formal procurement process.  4. Institutionalized or Government purchasing:  for nonbusiness purpose and only for mass development purposes
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Benefits of using Kraljic Matrix in business

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 Benefits of using Kraljic Matrix in business Focus resources on critical items while streamlining processes for less critical ones. Helps mitigate supply chain disruption by identifying high-risk items. Encourages cost-saving strategies for leverage and noncritical items. Align procurement with business goals through customized supplier relationships.
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Supply chain macro in a firm

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  The macro process of supply chains in a firm: 1. Customer relationship management (CRM) e.g., market, price, sell, call center, and order management system. 2. Internal supply chain management (ISCM) e.g., strategic demand, supply planning, fulfillment, and field service. 3. Supplier relationship management (SRM) e.g., source, negotiate, buy, and supply collaboration.
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Kraljic's matrix

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  Kraljic's matrix focuses on accessory manufacturers.
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Market Analysis in supply Chain

  Market Analysis in supply Chain It's an investigation into the market, how much power your supplier has, and how much buying power you have as your customer. 1. Buyer power: This means you have more options to choose from, and it is easier to select the alternative supplier. Example: For office stationery items, you have more power because there are many suppliers. 2. Supplier power: It means if you have to deal with a few suppliers, they have more power. But your power should increase if you have more power. Example: LP gas, oil, and raw material supplier power are high. Because there are few suppliers in the market.
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Raw Material Store vs. General Store.

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