10 key challenges for supply chain customer excellence

1. Processes and systems – lack of understanding of processes and systems and the impact on the supply chain
2. Detail – poor attention to detail
3. Cost - lack of understanding of service cost and breakdown
4. Revenue - fixated on the revenue implication of each customer improvement
5. Collaboration – poor partner collaboration in the feedback process
6. Visibility – customer issues not visible to all supply chain partners in the network
7. Continuous improvement – continuous improvement are not taking place as supply chains evolve
8. What matters – poor understanding of which services or services aspects really matter to customer
9. Management involvement – limited management involvement in the customer service process
10. Tracking – poor tracking and monitoring of customer feedback

10 principles of forecasting

1. Forecasting is mostly wrong. Keep track of forecasting errors and methods. Errors are likely to occur, so make adequate provisions. Forecasting is more accurate for product groups than individual items.
2. Forecasting focuses on a time series. Determine the time series and evaluate the suitability of the time series against the objective of the forecasting.
3. Qualitative and Quantitative information. Evaluate both types of information and select the appropriate method(s).Present forecasting in different scenarios.
4. Weighted data. More reliable and relevant data should be weighted more heavily.
5. Forecasting should be independent. This will limit groupthink and promote independent thinking.
6. Unbiased individual input. Ask unbiased individuals to evaluate the forecasting process and output.
7. Keep it simple. Try to keep methods simple. Test employee understanding of the methods.
8. Record demand influencers. Record all events that might influence demand, such as floods and sales promotions. Describe all data assumptions.
9. Remove uncharacteristic events. Remove events from the baseline data, such as strikes and sales events, that are very unlikely to occur frequently.
10. Ensure data consistency. When recording time series, ensure consistency in data collection methods. Make sure information is reliable and check sources.

10 key barriers with partner collaboration

1. Culture differences. Different organizations have different values and ways of doing things.
2. Poor alignment. Organizational goals and incentive conflicts.
3. Contracts and legal. Poor drawn up contracts or lack of contracts.
4. Accountability issues. Overlapping processes and unclear accountability issues.
5. Competing partners. Conflict of interests with competing organizations.
6. Lack of leadership. Lack of leadership to drive the collaboration process forward.
7. Communication. Poor communication between partners and lack of knowledge sharing.
8. Technology barriers. Integrating ERP and other tech systems provide unique challenges.
9. Unclear benefits. Benefits are not clear to all parties or are sometimes understated.
10. Corrective actions. Fail to identify problems and implement corrective actions.

10 key value providers to customers

1. Products. Do we provide the right products and SKUs to our customers?
2. Value. Are products seen as value for money to respective customers in identified channels?
3. Availability. Are specified SKUs available in specified channels?
4. Communication. Do we communicate OOS (out of stock) to our customers and is a dedicated customer helpline available?
5. Information. Do we provide any additional product and market information to our customers?
6. Services. What services do we provide to our customers and are they tailored to specific channels and customer classes?
7. Training. Do we provide any additional customer and employee training?
8. Equipment. What merchandising equipment do we provide to our customers and does it take into consideration channels and customer classes?
9. Merchandising. Do we provide merchandising services to key channels and customers?
10. Environment. Is our company policy taking into consideration environmental issues and green reverse logistics?

10 key issues for evaluating inventory

1. Forecasting process. What is the current forecasting process and who is involved in setting targets?
2. Information technology. Identify the current IT system(s) employed by the company and are regular upgrades and improvements taking place with partners?
3. Collaboration. How much does collaboration take place between the various internal and external partners?
4. Items overstocked and out of stock. Which items are over and out of stock and what are the reasons? Is there a pattern emerging in the data?
5. Expired and out of date. What are the current product shelve life’s and what is the affect on the forecasting?
6. Safety stock factor. Are you using a safety stock factor and is it the same for all product SKUs and classes?
7. Product life cycle. What is the current product life cycles and how do the various SKUs differ from one another?
8. Lead times. Identify the product lead times and are there potential bottlenecks?
9. Process flow and visibility. Do you have a clear understanding of the inventory flow and are there potential opportunities to reduce time wastage?
10. Continuous evaluation. Is continuous evaluation and tracking taking place and what are the required KPIs?

7 key issues to ensure accurate sales data

1. Eliminate duplicate databases- ensure the sales organization and partners are all using the same database
2. Sharing information- sharing information with departments and partners will also improve data relevance and eliminate duplications
3. Automation- automated processes will reduce data entry time and errors
4. Data entry simplification- simplify sales processes for salesman. This will allow more time for value adding activities e.g. sales presentation
5. Standardization- ensure data entry is standardized across the organization
6. Continuous improvement- small improvements can go a long way
7. Training- invest in continuous training for all relevant partners

10 key steps for developing a distributor evaluation system

1. Map out requirements- develop evaluation criteria and get agreement from key stakeholders
2. Process and roles- identify each stakeholders’ role in each operational process
3. Benchmarking-determine key KPIs that will form part of the evaluation
4. Create rating systems- develop the system and communicate and train employees and distributor partners. Ensure all parties have a clear understanding of the rating system
5. Pilot- launch pilot and evaluate results
6. Refinements- make adjustments to the evaluation system where required
7. Roll-out- implement evaluation system
8. Build relationship with distributors- the evaluation process will fail if distributors view it as a witch hunt. Sell benefits to employees and partners
9. Share- create a dashboard and make information easily accessible to all relevant parties
10. Conduct quality improvements- highlight focus areas and commence quality improvement process

10 key attributes of establishing Key Performance Indicators (KPIs)

1. Key stakeholders- involve key stakeholders in selecting KPIs
2. Visibility- create a KPI dashboard visible to all parties
3. Adding value- ensure KPIs add value to your business and highlight opportunities for process improvement
4. Customer focus- selected KPIs should add value to your customer’s business and ultimately improve the consumer experience
5. Financial impact- always keep in mind the bottom line
6. Direction- by evaluating key KPIs, you can determine the direction your business is heading
7. Education- it is important to train your employees and services partners so that they have a clear understanding of each KPI and how it adds value to your and their businesses.
8. Focus- limit KPIs and don’t try to track too much;  you are likely to lose focus.
9. Baselines- Create clear baselines you can measure your business against and track progress
10. Eliminate- evaluate the usability of each KPI and do not be afraid to eliminate KPIs that are not adding value to your business

10 key attributes of an effective supply chain

1. Consumer focus- consumer needs should always be the focus point of any supply chain system.
2. Speed – determine the speed of each process and procedure in the supply chain and assess how to improve on it. Benchmarking can play an important role here.
3. Flexibility- a rigid supply chain system can not respond to market changes.
4. Variability- a one size fits all solution is highly unlikely to work for all channels and customer segments.
5. Detailed approach - the devil is in the detail as small changes can have an enormous impact on your business.
6. Transparency- supply chain processes and procedures should be transparent to all stakeholders. The higher the visibility, the easier to identify problems in the system.
7. Honesty- transparent sharing of information and knowledge will lead to improved partnerships and build trust.
8. Collaboration- through the sharing of information and key learnings between supply chain partners the system can drastically improve.
9. Patience- all newly implemented systems require a patient approach as changes are unlikely to yield immediate results
10. Constant assessment- supply chains are not static and consumer and retail trends need to be monitored and evaluated on a regular basis.

10 building blocks of a distribution partnership

Find below some of the important building blocks in a distribution partnership:

1. Contracts- ensure clear partnership contracts
2. Processes- develop standardized processes communicated to all parties
3. Policies- implement policies and policy review processes
4. Tracking- ensure tracking and monitoring systems are clear to all parties
5. Benchmarking- develop clear benchmarking dashboard metrics
6. Reviews-schedule regular reviews and feedback sessions
7. Information- exchange information with distribution partners e.g. technology
8. Visibility-ensure distribution network visibility at all time
9. Training-schedule joined training sessions
10. Leadership-involve appropriate leaders in the process