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Push and Pull Strategy in Supply Chain
Push and pull supply chain strategies are two basic methods for controlling the flow of goods between the manufacturing unit to the end consumer. Each strategy has advantages and disadvantages, and the applicability is based on the product type, business objective and market demand. In this article, we will explore what is push and pull strategy in supply chain. Push and Pull Strategy in Supply Chain
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Making digital supply chain a reality Speed and quality are always things that our customers crave. For example, if you’re manufacturing a device with software or firmware built in, you want to serve your customers with the very latest version, which is tailored to the specific needs of the local markets—and you want to get it to them quickly. That’s not always possible if you are manufacturing at the far end of the world relative to most of your end-customers. Lead times for shipments can be up to six to eight weeks, so by the time the end-customers get the item it could already be two months old. What we are offering as a service is the ability to put the final touches to your product in a local warehouse that’s very close to your customers; load the latest or locally relevant software or technology kit so that your customers always get the very latest and greatest experience
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How does order management work?
PlacementThe customer places the order through an automated form. A sales team member checks the details and confirms the order.FulfillmentA warehouse employee confirms shipping details, generates an invoice and fulfills the order — pick, pack, and ship.Inventory managementInventory levels are monitored as they fluctuate with the demands of the business.How does order management work?
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Companies must reimagine and digitally enable the supply chain to be consumer-centric
The supply chain can help a CPG organization to pivot to growth rather than just being a cost center. Those CPG companies that do not invest in essential capabilities that enable resilience are holding growth hostage. Our analysis indicates a $10B company that develops an intelligent supply chain could grow revenues up to 3% through improved availability of the right products, better customer service and reduction in lost sales. It could increase profitability up to 4% through cost reductions and improve working capital by up to 2%. Furthermore, such a company could also increase trust and sustainability through reduced energy consumption and carbon emissions.
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The supply chain can help a CPG organization to pivot to growth rather than just being a cost center. Those CPG companies that do not invest in essential capabilities that enable resilience are holding growth hostage. Our analysis indicates a $10B company that develops an intelligent supply chain could grow revenues up to 3% through improved availability of the right products, better customer service and reduction in lost sales. It could increase profitability up to 4% through cost reductions and improve working capital by up to 2%. Furthermore, such a company could also increase trust and sustainability through reduced energy consumption and carbon emissions.
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Sometimes the smallest thing can bring an entire ecosystem to its knees. Whether it’s a microscopic virus or the common computer chip, we’re learning the hard lessons of underestimating risk. We’re also being forced to acknowledge that some problems don’t have a quick fix. If we’re going to avoid catastrophe in the future, we should challenge some of the foundational systems and processes we’ve taken for granted.
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Supply Chain Realignment:
To survive in a dynamic world, driven by ever-evolving industry trends and technological innovation, multinational corporations must find newer ways of conducting business for survival and growth. Further, geopolitical disruptions, rising protectionist policies, regulatory scrutiny, possible COVID-19-like disruptions, restrictions on foreign investments and increasing cybersecurity threats are directly impacting their supply chain strategies. From diversification to reshoring and regionalisation to risk mitigation, policies have been adapted and processes overhauled.
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To survive in a dynamic world, driven by ever-evolving industry trends and technological innovation, multinational corporations must find newer ways of conducting business for survival and growth. Further, geopolitical disruptions, rising protectionist policies, regulatory scrutiny, possible COVID-19-like disruptions, restrictions on foreign investments and increasing cybersecurity threats are directly impacting their supply chain strategies. From diversification to reshoring and regionalisation to risk mitigation, policies have been adapted and processes overhauled.
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Myriad use cases for supply chain analytics and AI exist, and the number continues to grow. But all use cases aren’t created equal. Some are more difficult to scale than others, and the impact on key business priorities can differ across use cases. This is why companies that are looking to increase their spending on and use of these technologies should focus their initial efforts to get the biggest return on their investment. We think three use cases, in particular, make the most sense as starting points—all of which can play a significant role in helping companies maximize relevance, resilience and responsibility.
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Myriad use cases for supply chain analytics and AI exist, and the number continues to grow. But all use cases aren’t created equal. Some are more difficult to scale than others, and the impact on key business priorities can differ across use cases. This is why companies that are looking to increase their spending on and use of these technologies should focus their initial efforts to get the biggest return on their investment. We think three use cases, in particular, make the most sense as starting points—all of which can play a significant role in helping companies maximize relevance, resilience and responsibility.
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