Over the last few months, companies have seen steep increase in the prices of packaging commodities. Conventional packing suppliers are left with no option but to demand an increase in pricing from their buyers. And buyers, on the other hand, are under pressure to maintain balance between demand and supply of packing material without affecting the costs. It’s a “Tug of War” situation that’s getting created between suppliers and buyers. A routine negotiation process is going to help buyers just to buy time, but not very long? A long lasting solution has become a necessity of time for all buyers. […]
The cosmetic industry abound with innovations and transformations is all geared up to bridge the sudden gap in sales that had followed the global pandemic crisis last year. For an industry that stood at $483B in 2020 stands at $511B in 2021 and is expected to hit an epic high of $784.6B by 2025.
As per industry forecasts, there will be massive shifts in trends with respect to products in demand, consumer behavior and purchase touchpoints, some of which have made their presence felt in the market already.
Tapping into growth opportunities will be possible for brands, retailers, ecommerce sellers, online shops […]
The peak season represents the high point of business operations, viewed equally with anticipation and dread. And understandably so, since it presents an excellent opportunity to win customers and finances and reap the rewards of the labour and planning invested throughout the year. But peak season also pushes businesses to their limits of productivity.
To ensure that businesses do not lose the revenue opportunity of the season, peak season planning is done several months in advance and is often a highlight of the annual business strategy. Many businesses push for an increase in capacity and throughput during this time, besides hiring […]
Why Planning Integration for Production, Packaging and Transportation matters & Key Pointers for doing it
The path to high productivity in supply chain management often requires a fundamental shift in how business is conducted. In the supply chain, the product journey starts at component/raw material procurement, followed by production, packaging, and then transportation to a dealer or the end customer for consumption. Usually, the planning for these processes occurs in silos with little coordination in between – a practice that creates several inter-process bottlenecks. These bottlenecks drive costs and performance pressures. To prevent these bottlenecks and the resulting stresses, the planning approach should emulate the on-ground realities of the supply chain.
To this end, an integrated […]
Data intelligence has been in vogue since the last few decades and for good reason. The impact of intelligent technologies, especially AI, on business productivity and efficiency has been significant. In fact, as per McKinsey & Company research, nearly 70% of companies across industries and business functions are expected to implement AI by 2030, with AI delivering a year-on-year global GDP growth of 1.2% per year and “additional economic activity of around $13 trillion by 2030.”
Considering these statistics and how businesses are motivated to carry through their transformation goals, it is crucial to know whether organizations are ready for this […]
Moving from Legacy Software to Data Intelligence
Business success today requires intelligent technologies to ensure process efficiency, recognize trends, mitigate risks, and automate repetitive tasks. Implementing smart technologies has, therefore, become an important growth strategy. Before investing in sophisticated and (often) cloud-based data-intelligence solutions, organizations must determine whether their business ecosystems can support such capabilities.
For the past several years, legacy infrastructure (comprising of outdated hardware, operating systems, ERPs, CRMs, etc.) has become incompatible with modern information technology applications. It is, therefore, unable to meet the information needs of businesses or support business innovation. Other issues also emerge, such as high expenditure […]
The success stories of today, in the context of the supply chain, are the ones that are backed by rigorous and coherent planning. Production planning, which is central to the manufacturing exercise, defines the utilization of resources for meeting sales targets within the limiting constraints of the supply and production environment. The plan should set achievable production targets, specify resource allocation for the complete product portfolio for the planning period, and direct the flow of energy, labour, and costs to meet the same. If planning is optimal and efficient, it is intrinsic to ensuring greater profit and service levels in […]
The pressures of globalization are not just experienced for the supply, production, and logistics segments of the supply chain but also packaging. The way these products are produced, assembled, and brought to the market has implications on their marketability and the customer buying decision. However, many businesses have made it a part of their supply chain strategy, however there are others who are trying to catch up. But lately, with the emergence of a global conscience on sustainability and a focus on process optimization, greater interest has developed in this dimension.
The Dimensions of Packaging Planning
An analysis of packaging systems including […]
Efficiency is the foundation stone of a successful business. The upstream and downstream effects of errors and inefficiencies propagate through the supply chain in increasingly uncertain and equivocal ways that create weak links throughout the chain. Every day, immense human effort and initiatives are directed towards managing the entropy of the supply chain lest errors go unaddressed. Planning, which is a centre point of supply chain management and is at the forefront of supply chain activities, requires consistent improvement and adherence to efficiency and accuracy standards. One such planning dimension is that of dispatch.
It is essential to accurately plan how […]
Supply chain competitiveness is rarely seen from the lens of productivity. Often, the perspective is replaced with that of profitability – of cost margins and savings. Yet, attitudes towards productivity are changing. Studies suggest that for many businesses, improving the productivity of systems, processes, and the workforce has emerged as a critical target. To understand why this is so, it is necessary to understand the implications of productivity for the supply chain.
Productivity essentially is a ratio of the output to the input. In supply chain terms, the productivity of an organization can be high if it produces more units of […]
The path to continuous improvement for the manufacturing industry today is fraught with challenges. As businesses grow and strive for a greater global presence, variabilities and supply chain complexities rise. The impact of this is often experienced in terms of burgeoning costs. Variable market demand leads to greater juggling of capacity and firefighting approaches to fulfil orders – increase in overtime leads to added costs; over-utilization of machinery and energy leads to greater downtime, and material deficiencies are managed with last-minutes supplier orders. All of these contribute to a high manufacturing cost overhead. Yet, efficiency is critical to the health […]