Category: Supply Chain Dictionary

Do You Know the Bullwhip Effect? How an Order of 10 T-Shirts Can Ruin an Entire Factory – Welcome to the Whiplash Effect!

logistafrica

Imagine a simple scenario: a clothing store experiences a slight increase in demand for a trendy t-shirt design. This week, ten additional customers purchase that t-shirt. To avoid running out of stock, the store manager places a larger-than-usual order with their wholesaler. The wholesaler, seeing what appears to be an increased demand, doubles down and places an even larger order with the manufacturer. The manufacturer, in turn, interprets this as a signal to ramp up production and orders a surplus of fabric from suppliers. The result? The supply chain spirals…

Read More

SUPPLY CHAIN DICTIONARY : LOGISTICS CORRIDOR

logistafrica

A logistics corridor is a route or itinerary designed to optimize the movement of goods from their point of origin to their final destination. This corridor integrates multiple modes of transport such as roads, railways, waterways, and seaports, and uses specialized logistics infrastructure and services to ensure an efficient, fast, and secure supply chain.   Benefits of Logistics Corridors Optimization of the Supply Chain: Reduces transit times and transportation costs through optimized routes. Improves logistics operations efficiency by better coordination between different modes of transport. Reduction of Logistics Costs: Minimizes…

Read More

SUPPLY CHAIN DICTIONARY: STOCK

logistafrica

Good inventory management is a guarantee of performance for a company. This is essential to ensure the financial profitability of the company as well as customer satisfaction. Indeed, better inventory control makes it possible to have products available to respond instantly to customer requests while avoiding overstocking, which is often very costly. Thus, to properly maintain your stocks, it is recommended to classify them according to functional and operational criteria. So what are the different types of inventory that are most common in warehouses? Types of stocks according to their…

Read More

SUPPLY CHAIN DICTIONARY: E-SOURCING

logistafrica

E-sourcing is simply a set of digital tools that can simplify and improve the strategic sourcing activities and purchasing procedures carried out by an organisation’s purchasing team. E-sourcing tools enhance the ability of Purchasing to generate value for the organisation by managing all spend and all suppliers, reducing supply chain risks and increasing savings. What is the difference between e-sourcing and sourcing? Basically, sourcing and e-sourcing are not so different. In both cases, purchasing managers seek to identify the best products from the best suppliers offering the best prices and…

Read More

Supply chain dictionary : lean logistics

logistafrica

Imagine a logistics company that operates like a Formula 1 team: fast, fluid, and without waste. This is the essence of Lean logistics, an operations management approach that aims to eliminate “muda,” or activities that do not add value to the customer. Lean logistics focuses on the essentials: Delivering the right product, to the right place, at the right time, and at the right cost. Eliminating unnecessary steps, unnecessary inventory, and waiting times. Improving the quality and reliability of service. Lean logistics has many advantages: Cost reduction:lower inventory, transportation, errors,…

Read More

SUPPLY CHAIN DICTIONARY – PULL PRODUCTION: AN EFFICIENT PRODUCTION METHOD

logistafrica

Pull production is a manufacturing method that involves producing goods or services only in response to actual demand. This demand can come from an end customer, a distributor, or another player in the supply chain. What is Pull Production? In pull production, production stages are not initiated in advance but only when demand justifies it. This helps avoid the production of unnecessary stocks, which can lead to storage, transportation, and product depreciation costs. To operate, pull production relies on several fundamental principles: Demand drives production: It is the customer’s demand…

Read More

Supply Chai Dictionary : What is Cross-docking?

logistafrica

Cross-docking refers to a  method consists of moving goods from the arrival docks to the departure docks without putting them back in the warehouse. The cross-docking operation is based above all on careful sorting of the packages, which is essential to guarantee the continuity of the distribution chain. As a general rule, goods packages do not remain on the receiving site for more than 24 hours. They are forwarded for delivery on the same day or the day after their arrival at the unloading platform, which makes cross-docking an ideal solution for urgent or…

Read More

Supply Chain Dictionary : Urban Logistics

logistafrica

Urban logistics refers to the set of processes, strategies, and solutions implemented to efficiently and sustainably manage the flows of goods, information, and services within a dense and complex urban environment. Its goal is to optimize the distribution of goods while minimizing negative impacts on mobility, the environment, and citizens’ quality of life. Illustrative Examples: Parcel Delivery: E-commerce companies face the need to swiftly deliver parcels to customers in urban environments. Urban logistics involves planning optimized delivery routes for couriers, using collection points to consolidate packages, and exploring more sustainable…

Read More

Supply Chain Dictionary : Depreciation

logistafrica

Depreciation in the supply chain domain refers to the decline in the value of a product, service, or asset over time. This can occur for various reasons, including obsolescence, physical deterioration, market fluctuations, or technological advancements. Let’s take the example of an electronic product, such as a smartphone. When a new model with improved features is launched in the market, older models lose their value. This depreciation can be accelerated if the market is flooded with similar smartphones, leading to a decrease in demand and consequently, a decline in prices.…

Read More