Feed your brain

Supply Chain View has been collecting free resources from the web, for Supply Chain Management, Lean and Six Sigma.

Find resources here »

Site search

Links:

Tags

Humanitarian crisis in East Africa: please help

August 1st, 2011 | By: Martin Arrand

I was working in Kenya last week, a long way from the area affected by the droughts, but I realised that in the last few hectic weeks I had not made time to make a donation to the crisis appeal. Perhaps you have been in the same situation. Well, it’s never to late to give, so please follow the link to the Disasters Emergency Committee appeal, or donate to one of the other NGOs working there (and there are organisations and staff from all over the world in East Africa right now).

Again, logisticians will be at the heart of operations to deliver humanitarian assistance, whether that be food, sanitation facilities, clean water, shelter or security. Humanitarian logisticians are some of the most talented and hard-working supply chain professionals, and I’m sure all those in supply chain would want to support their hard work.

The Economist: overheating emerging economies

June 30th, 2011 | By: Martin Arrand

I’ve just picked up this interactive chart from The Economist. I’m particularly interested in the risk of overheating in the Indian economy, as my most recent trips there certainly make me feel there is a bubble inflating, if only based on the simple heuristic of the number of property speculation SMSs I get on my Indian phone.

The domestic logistics infrastructure in India is still very undeveloped. A post-bubble crash would undoubtedly pause physical infrastructure investment, and without an expansion in the domestic consumer market the sector will struggle.

China looks less risky in this analysis, but Hong Kong looks dicey, as do countries in China’s backyard such as Vietnam.


Read more here: http://www.economist.com/blogs/dailychart/2011/06/overheating-emerging-markets-0?fsrc=scn/tw/te/dc/temperaturegauge

Centre of gravity for warehouse location – try the working model

June 8th, 2011 | By: Martin Arrand

I’ve just posted up a development version of a centre of gravity model for distribution centre location. It uses Google Maps, and it is really easy to use, and completely free. Try it here now.

I regard it as a “toy” application, but I’m surprised how usable it is (down to the familiar Google interface I think rather than my design skills). And it really does work.

I am going to use it to demonstrate the principle of COG in logistics networks, as a teaching and communication aid rather than a serious analysis tool. But maybe the next time the team is debating where to go for a night out we can plot all our home locations and see where the most convenient spot is.

It is an early release so quite buggy and breakable, and all feedback is welcome – just drop me a comment.

That link again: Centre of Gravity Model.

Teach Yourself Supply Chain Management in Ten Years

May 11th, 2011 | By: Martin Arrand

(with apologies to Peter Norvig)

Some time ago, the wise and well-respected computer scientist Peter Norvig wrote an article called “Teach Yourself Programming in Ten Years”. I read it recently and found it so full of good sense I couldn’t resist taking the spirit of Norvig’s thoughts and applying them to supply chain management.

Norvig’s attention had been taken by the slew of books – you may have seen them yourself if you’ve walked past the computing section of a bookstores – with titles such as “Learn C++ in 3 days” (not a made-up title).

Study hard... only 9 more years to go - photo by Mateusz Stachowski

In response to the misleading claims, trivial treatment and impossible promise of instant gratification of these titles, Norvig set out a series of practical ideas for how to “Teach Yourself Programming in Ten Years”. He draws on well-attested notions of deliberative practice: the way learning comes from long and repeated application of “not just doing it again and again, but challenging yourself with a task that is just beyond your current ability, trying it, analyzing your performance while and after doing it, and correcting any mistakes”. (These ideas have recently been popularised by Malcolm Gladwell in Outliers – you will have come across his “10,000 hours” rule.)

I’ve seen a lot of bright young people apply themselves energetically to supply chain management positions, and while many do remarkable things they have all admitted there is an incredibly steep learning curve. Not only that, more experienced managers often say that the more they know, the more they recognise the gaps in their knowledge. Whereas the most experienced people often have seemingly effortless intuition for getting to the root of problems, seeing pitfalls, identifying workable solutions and guiding them to completion. I believe that intuition comes from long and varied deliberative practice in supply chain and general management.

Here are my ideas for how to do that:

It doesn’t matter where you start from, whether you have a degree, what kind of degree. You need some aptitude (including good numeracy and a capacity for conceptual thinking), but you also need a curiosity about the world and an interest in solving problems and making things work better.

■ Get experience of some general operational excellence approaches, preferably outside a strictly supply chain role. Most supply chain issues are enmeshed in general business issues, and knowing how to improve the quality and productivity of processes in general is extremely useful. Learn Lean from a manufacturing engineer – for my money automotive engineers have the most depth of skill. Join a project with them and get out onto the shop floor. Pay attention to the soft skills too – bringing people along with the change. Learn John Seddon’s Systems Thinking approach on a project in a service operation, and see how customers interact with processes. Try not to get caught up in sectarian conflicts between supporters of different approaches – keep an open mind to the merits, weaknesses and appropriateness of various methods.
Read more »

World Food Programme Logistics video

May 9th, 2011 | By: Martin Arrand

Here is a stirring video from the World Food Programme about their humanitarian logistics capabilities. The scope and scale are remarkable.


India’s consumer market drives supply chain growth

April 28th, 2011 | By: Martin Arrand

Today I’m continuing my analysis of supply chain management in India with some discussion of the economic context. India’s economy is growing very quickly – recently we’ve begun to worry that it’s growing too quickly, running the risk of overheating . But it would be odd if such a rapid transformation of the economy didn’t hit a few bumps along the way, and my feeling is that over the long term India will experience sustained and considerable growth.

Shoppers in Delhi's M-Block Market

Shoppers in Delhi's M-Block Market

Where is this growth coming from? Partly it comes from exports, both of goods and services (most notably BPO and IT services). But significantly it comes from a growing domestic consumer market, driven by a broadening of the middle classes and an increase in disposable income across the population. Rajev Pal noted recently that 3PLs are experiencing growth from the Indian FMCG sector. I think growth of the domestic consumer market has profound implications for supply chain management in India.

Again I’ll point you in the direction of the McKinsey India website and their report The ‘Bird of Gold’: The Rise of India’s Consumer Market. This paper originally came out in May 2007, but it’s conclusions have not been countered by the evidence of the last 4 years. (McKinsey based their models on compound growth rates of 7.3%, which turns out to be very close to reality even during the period of global financial crisis. This sustained growth reinforces the conclusion that domestic consumption has become the most important economic driver.)

McKinsey forecast that by 2025 India will be the 5th largest consumer economy in the world (in 2007 it was in 12th place). Now this won’t make Indians rich – 2025 per capita consumer spending will still only be just over $1000 a year in today’s money – but it does represent a sizeable shift and will pull huge numbers of people out of poverty. In fact they expect the proportion of people they classify as “deprived” (household incomes of less than Rs 90,000 p.a. at year 2000 prices) to more than halve by 2025 (54% of population in 2005 down to 22%). This is not wishful thinking – in 1985 this section of society represented 93% of the population, so growth in the last 25 years has been effective in lifting large numbers of people out of desperate conditions.

Read more »

Supply chain management in India

April 4th, 2011 | By: Martin Arrand

I am planning to write a few posts about supply chain management in India. I am in the country working with a local client for a couple of weeks, back for the first time since my 6 weeks living in Delhi earlier in 2010/11.

This is a very exciting topic, and though I have been visiting the country for nearly 20 years I am addressing it with some trepidation, as I know that India has its own very well-informed and qualified experts in SCM, some of whom may stumble upon this blog (big news: the internet is global). So apologies for those on the subcontinent for whom this is very basic stuff and old news. But I know from speaking to colleagues here in the UK that professionals in Europe and the US have very little idea of what goes on in India, so I hope this is of use to some.

A really good starting point to learn more about SCM in India is a study McKinsey published in July 2010 titled . “Transforming the nation’s logistics” Without trying to paraphrase a 70 page report, here are some points that stood out for me.

  • Freight movement in the country is forecast to triple in the next decade
  • Economies with similarly large populations and geographical area (China, USA) transport more freight by rail and water than India – in fact if current investment plans hold rail’s share of freight in India will decline from 36% to 25%
  • The skilled logistics will have to increase from 10 million now to 20 million in 2020, including over 100,000 warehouse managers
  • Waste caused by poor logistics infrastructure is estimated at USD 45 billion a year, which is a massive 4.3% of GDP, and this will rise to 5% by 2020

Read more »

Logistics cluster still $5m short for Pakistan floods

August 24th, 2010 | By: Martin Arrand

According to OCHA funding for Logistics Cluster activity for the Pakistan floods is still $5m short of the $15m requirement estimated. All the learning from recent humanitarian emergencies (from the Asian tsunami of 2004 to the Haiti earthquake earlier this year) shows how vital logistics coordination is to an effective response.

$15m is small as a proportion of the total requirement (about 3% of the total budget of $460m – the biggest ticket cluster being Food Security). More details from ReliefWeb.

In the UK the DEC appeal has raised £30m. I heard DEC’s Chief Exec Brendan Gormley on the radio yesterday saying that the British public’s response has shamed governments around the world into giving more. The DEC appeal is still open – click through if you would like to donate (again).

DEC Pakistan Floods Appeal

August 12th, 2010 | By: Martin Arrand

Just a quick reminder that the Disasters Emergency Committee is still pushing for funds to help relieve the terrible situation in Pakistan.

The NGOs receiving DEC funding have highly developed and professional humanitarian logistics capabilities, which are vital to rapid and effective intervention.

You can donate online now here https://www.donate.bt.com/dec_form_pfa.html?p_form_id=PFA45. If you are a UK tax-payer, don’t forget to choose the Gift Aid option. Or go to the DEC website and click through if you prefer.

DEC Pakistan Floods Appeal

Thanks.

LOG: Logistics Operations Guide for humanitarian logisticians

August 3rd, 2010 | By: Martin Arrand

Here is something very useful for humanitarian logisticians: the Logistics Operations Guide, or LOG for short, brought to you by the Logistics Cluster. But not only is it useful for those in the humanitarian sector, it is an excellent model for the clear communication of logistics know-how: succint, practical and well-referenced. (The big logo below is a link to the site.)

Logistics Operational Guide

In the words of the website, the LOG is

a single source of best practices comprising of logistics templates, operational tools, references, and guidelines that should be of use to all humanitarian logisticians, regardless of the size of their organisation, or its area of specialisation.  Specifically, the LOG targets all humanitarian logisticians deployed in ongoing operations and new emergencies.

The LOG is presented as a website, but importantly it can also be made accessible offline, either by downloading a Windows executable file, or by using Google Gears. (I tried the latter out on my Mac because it wouldn’t run the Windows file, and it worked perfectly.)

This means that staff deployed on operations can take a laptop with a full copy of the LOG website (and if they get to connect to the net they can pick up any updates). This is very neat, and the WFP IT people who put it together did a great job in selecting a Gears-enable CMS that supports this.

You can read more about the LOG at www.logcluster.org/tools/log or go directly to the LOG site log.logcluster.org. If you want to set it up on your laptop using Gears I recommend you read the technical guide pdf as the main site steers you towards the Windows exe file. If you get stuck drop me a note and I’ll clarify.