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Innovation in the Supply Chain in High Performance Organizations
February 6th, 2023 by

For supply chain managers, navigating the logistical difficulties brought on by unforeseen geopolitical factors, natural disasters, and disruptive trade wars is nothing new. If we take the previous years as an example, China announced $75 billion in tariffs on US goods, Hurricane Dorian headed toward the Bahamas, Typhoon Padul hit Vietnam, wildfires raged in the Amazon, protests virtually paralysed Hong Kong, and former President, Donald Trump attempted to order US manufacturers to leave China, Covid-19 the pandemic.
Any one of those occurrences may obstruct the global supply chain on its own. Events like those that occurred in when put together form the VUCA world, which stands for volatile, unpredictable, complex, and ambiguous. Any disruption could have an impact because modern supply chains can involve hundreds of suppliers and numerous industrial facilities spread out throughout the globe.
By proactively anticipating turbulence and planning solutions that will not only limit risk but also provide a superior solution, the opportunity is generated. The following trends are particularly being addressed by these innovations:
• A generational shift
• Customer revolution in the digital world
• “Personalization” for consumers
Companies have an inherent competitive edge when they comprehend how these influences affect supply networks. For instance, the directive issued by President Trump pushing US manufacturers to cease doing business in China was irrelevant to high-performance organisations. Many supply chains had already begun the process of shifting their risk-management techniques away from cost-centric models and toward regionalization, which shortens transit times and raises pressure at supply nodes, even before the US-China Trade War heated up. The customer revolution gives consumers increasing choices and demands. Customers are becoming less forgiving. Therefore, having a supply chain with greater resilience is more advantageous from a business standpoint because lost customers result from a weak supply chain. Regionalization ought to be happening already.
The supply chain process was originally primarily thought of as a technique to reduce risk, but today’s best businesses regard it as a crucial strategy for generating income. Top firms require holistic supply chain leaders that have a complete awareness of the supply chain’s role in a company’s growth plan. Supply chain managers can follow this guidance and turn disruption into an opportunity for innovation by learning to see the supply chain as a whole, from the supplier’s supplier to the consumer’s purchasing experience, and by comprehending developments in the next ten years of supply chain management. A candidate pursuing one of the many Supply Chain Management Courses in Kochi can understand this matter in depth.

Innovation in supply chains is crucial
The early 1980s were a turbulent period typified by globalisation, offshore, new product categories, an energy crisis, the intensification of the Cold War, and increasing shareholder expectations, much like our contemporary quickly changing geopolitical and environmental context. The supply chain sector responded during this time by realising that organisational thinking needed to advance. In 2000, the industry underwent another evolution, this time concentrating on the end-to-end supply chain rather than just the worldwide supply chain.
Today’s supply chain managers must adapt and innovate since they are operating in an environment that is the most complicated in terms of possibilities and challenges. You will miss out on having a competitive advantage if your supply chain is not innovative. Innovation is crucial, and to do this you must first have a thorough awareness of the trends influencing supply chain management. Supply chain executives will need to be on the lookout for a number of significant changes as we approach 2025:
1. The generational shift
Born between 1946 and 1964, are the Baby Boomer generation. The youngest boomers will reach retirement age in the following ten years, making them no longer eligible for employment. Employers must take into account certain general differences between Boomers, Gen-Xers, Millennials, and Gen-Zs if they want to get the most out of their workforce, even though not all members of a generation behave in the same manner.
For instance, Baby Boomers implemented and promoted standardisation as an end-to-end supply chain approach. But younger generations are beginning to doubt traditions that could seem to restrict flexibility. Younger workers are being asked by benchmark firms to “standardise what we know” and to provide creative, flexible solutions for issues that have not yet been resolved.
Supply chain executives will want to consider the following questions when the workforce’s demographics change:
• How can the supply chain take advantage of Gen X’s results-driven mind-set and initiative?
• How can the supply chain take advantage of Millennials’ high sense of morality and civic duty?
• How can the supply chain take advantage of Gen Z’s technical aptitude and desire for a fast-paced environment?
2. The digital age
The fourth industrial revolution, which is currently underway and being fuelled by quick technological advancements. With the proper implementation of modern technology, almost any manual task may be reinvented.
• Use drones to perform maintenance, safety checks, and inventory cycle counting.
• Huge training expenditures to redirect technology resources toward operating digital systems.
• Supplying workers with virtual reality goggles to access films and data at the point of execution for maintenance procedures, operational problem-solving, order picking and packing, and other training/resource requirements in warehouse and factory operations.
3. Customer revolution
The customer revolution has been aided by sub-trends including online shopping, the quick development of new retail locations, and the merger of food and mass-discount stores like Walmart, Target, and Kroger. Customers generally anticipate quicker shipping times and quicker product replenishment when they shop. High standards for service and quality are imposed by these expectations, which also put pressure on manufacturer margins. But trying to cut costs by using fewer plants and less expensive labour will just make the supply chain more convoluted and less visible.
Businesses should look at new technology that can assist in integrating global supply chain providers into regional structures in order to innovate within the customer revolution. By improving the visibility and agility of the supply chain, this will aid in meeting customer expectations. Regionalization can ultimately help businesses save money by helping them keep happy, satisfied clients.
4. “Personalization” for consumers
Today’s consumers increasingly want individualised products, which adds complexity and calls for innovation, along with the customer revolution and generational shifts. For instance, Coca-Cola now sells sodas with your name printed on the can. Because each name has a unique code, this one change has resulted in the supply chain for Coke expanding from one SKU to hundreds of SKUs.
These trends aid in identifying potential areas for development and change in the supply chain, which is essential to the success of your company.

What fuels innovation in the supply chain?
The evolving internal and external expectations placed on the supply chain are what driving these advancements in supply chain management. Technology has altered how consumers order goods and services externally. Virtually every internal operational activity, such as production, hiring, training, quality assurance, and transportation, has been altered by technology.

The five fresh best practises to capitalise on the forces driving supply chain innovation:
1. Thrive on speed: Supply chain processes alter as a result of speed, and embracing speed is one example of how disruption may be used to create opportunity. The numerous difficulties of the VUCA world don’t frighten benchmark organisations; instead, they employ speed to efficiently engage their personnel and hasten their growth. Speed provides a competitive advantage when combined with supply chain visibility. Executives in the supply chain can do away with non-value-added activity, standardise jobs that are repeated, and lessen self-induced variance.
2. Consider career advancement that is project- or role-oriented: HPOs have found success structuring work around projects in a merit-based system as opposed to roles in a tenure-based one. This methodology also benefits from the generational disparities among employees by empowering people to successfully address corporate problems.
3. Accept generational differences: Companies benefit from diversity, especially generational diversity, as it brings a variety of solutions to address difficult problems. When working together to solve a problem, senior staff members will offer a lot of experience to the table, while junior staff members will provide fresh perspectives and new abilities.
4. Create virtual networks: With the advancement of technology, shared office spaces are no longer the defining characteristic of international supply chain teams. Today, many teams don’t even sit on the same floor while working; they may even work in different time zones. Social ties between team members who have never met in person are made possible through virtual communication systems, allowing them to work together, create bonds, and exchange ideas.
5. Put an emphasis on supply chain lean innovation: Executives in charge of the supply chain can employ lean innovation to keep up with the demands of shifting consumer wants. Lean innovation is focused on empowering leaders to design settings for supply chain management that encourage the innovative solutions required for today’s VUCA reality.
The main forces behind supply chain innovation should be addressed as soon as feasible by supply chain executives. If there is one guiding principle, it is speed. Nowadays, innovation occurs instantly. From the very first vendor you speak with all the way through to final delivery, it covers virtual networks of personnel along the whole supply chain.

Innovations in the supply chain examples
Recent instances of creative supply chain management, concentrate on integrating new technology to boost speed, flexibility, and effectiveness. The problem, is not that the world is too complicated but rather that businesses need to move quickly to put solutions into place and be the first to capitalise on novel competitive advantages.
Supply chain workers should take advantage of adaptable software if a new cutting-edge technology is not yet available. Supply chain managers frequently use the metric on-time in full (OTIF) to assess the frequency with which customers receive their correct orders by the scheduled delivery date. To expand supply chain visibility and boost their OTIF to 95%, one consumer packaged goods (CPG) company McKinsey dealt and described how they combined a new analytical system with their existing system. The raw materials were examined at the SKU level of the custom software. It provided optimum ideas after analysing more than one terabyte of data per day, a feat that would be difficult for a human to accomplish. Importantly, the business created and implemented this system in just three months.

Innovative supply chain success
The GSCI case study included 14 benchmark businesses from the beverage, equipment, technology, automotive, chemical, food, and CPG industries for research on how high-performance organisations innovate. According to their research, supply chain innovation stimulates corporate growth in a cycle. People are where innovation starts. It entails giving supply chain specialists the freedom to pursue their own professional development inside a company, from entry-level supply chain managers to seasoned supply executives. All staff members then start bringing new ideas to their positions and bringing value, which results in top-line development.
You must, in order to successfully adopt new supply chain innovations:
• Recognize the difficulties facing the global supply chain.
• Recognize the shifts that supply chain management will face during the coming ten years.
• Prepare to put new and proven best practises into effect.
Above all, move fast and keep in mind that chances for growth exist in supply chain management challenges.

Education innovation
Supply chain managers need to be skilled innovators. They must be adept at navigating a terrain that is rapidly changing and well-versed in the fundamentals of leadership. High-performance teams that achieve top-notch results will need to have top individuals that offer a broad perspective to the decision table. Decisions made in boardrooms and business meetings will be strengthened with greater diversity and inclusion in the supply chain and logistics sector. In fact, GSCI discovered that businesses with superior diversity leadership ratings reported almost twice as much income associated with innovation as businesses with inferior scores. Pursuing any one of the Diploma Courses in Logistics from SLMT, Elamkulam which is the best logistics institute in Kerala can help you to know more about Supply Chain and build a career in this sector.

Types of Transportation in Logistics
January 24th, 2023 by

India handles 4.6 billion tonnes of products yearly at a total cost of INR 9.5 lakh crore, according to research from RMI India. In India, the majority of freight movement is accomplished by road.
The most important component of the logistics chain is transportation since it connects the various steps in the logistics process and guarantees the timely delivery of goods to clients. Transportation is needed throughout the whole logistics process, from manufacture to customer delivery through the return order process. The logistics system has little chance of producing its maximal output without a well-developed transportation infrastructure.
To maximise the effectiveness of the transportation system, careful planning and coordination are required.
Additionally, transportation accounts for a sizable amount of the logistical expenditures. So, in logistics, proper method and service selection for transportation becomes crucial.
According to a Statista analysis, transportation expenditures accounted for over 40% of all logistics costs in India in 2020, or about 6% of the country’s GDP. About 14% of the nation’s GDP was consumed by logistics costs overall.
Road accounts for 64% of all freight logistics, and railways are responsible for 32% of all freight transit over distances more than 300 km.
As a result, the effectiveness and management of transportation are crucial to the logistics system’s success.
The transportation system develops in tandem with the logistics system as a result of globalisation and the increasing demands of businesses and industries. An efficient transportation system aids in the system’s distribution process optimization and aids in the promotion of firms’ efficiency and competitive advantage.
Joining for one of the best Logistics courses in Ernakulam like the one provided by SLMT, Elamkulam will help you to know more about the importance of logistics transportation and different types of transportation.

Transportation’s Function in Logistics

An efficient form of transportation aids in a company’s ability to fulfil orders quickly and accurately. The transportation system can improve logistics services, save operating costs, and encourage high-quality service. Here are some additional crucial transportation-related tasks in logistics:

1. Coordinates various logistics processes

Everything is reliant on transportation, including manufacturing, production, warehouse management, and product distribution. A transportation infrastructure is needed at the manufacturing centre to convey goods to storage facilities or to customers directly. In addition, once an order is placed, a prompt transportation service is needed to deliver goods from the warehouse or point of origin to the final consumer.

2. Provides Delivery Services to Businesses

Transportation is an essential logistical service that links manufacturers and customers. The product is moved using different transportation techniques, from its point of origin to its final destination. A reliable shipping service helps ensure that the goods are delivered precisely and with minimal damage. A properly managed transportation system aids in delivering items at the appropriate time and location. This results in efficiency and satisfies client demand. A good transportation system benefits the organisation and the logistics system by providing high-quality service. Businesses who provide products on schedule win the trust of their clients and eventually establish a name for themselves.

3. Enhances the Logistics Process’ Efficiency

The logistics process’ effectiveness is determined by the transportation-related operations. Techniques and processes have an impact on the loading of items, delivery speed, service quality, operational costs, and labour. Professionals in the transportation industry work together with employees in the logistics and supply chain sectors to ensure that goods are delivered to clients on schedule, increasing the logistics process’ overall effectiveness.

What kind of transportation are there in logistics?

The logistics area uses four different forms of transportation for shipments. These include cars, buses, trains, and ships. Depending on the needs of the organisation, logistics uses all four of these forms of transportation. The speed of delivery has a big impact on the mode of transportation.
Learn about the many forms of transportation used in logistics, as well as their benefits and drawbacks, here:

Transportation by Road (Truck Freight)

Road logistics in India are predicted to increase at a compound annual growth rate of 8% over the next two years, reaching USD 330 billion by 2025, according to an article in the Economics Times.
According to another Statistics study, 64% of all freight transit in India was done by road in 2022.
Trucks are the predominant mode of transportation on the roads. In rural areas with a lack of other transportation options, it is one of the most affordable methods of moving items and is helpful for moving services.
The following are some benefits and drawbacks of using the road for transportation:
Road transportation has several benefits, such that it is effective for intercity travel, flexible in its routing, cheap over short distances, and able to transfer goods to adjacent nations.

Limitations of road travel

• Slower than other modes of transportation
• No control over how goods are handled; limited distribution outside of coastal areas
• Delivery delays caused by natural disasters, strikes, etc.

Transportation by Rail (Train Freight)

One of the most popular and significant modes of transportation is rail. It is the method utilised to efficiently transport heavy objects over long distances.
Discover the value of rail transportation in logistics, as well as its drawbacks, here:

Rail transit benefits

Long-distance travel is more affordable with this mode of transportation. It is also one of the fastest forms of road travel. It is also one of the safest and most dependable modes of transportation. It is also least influenced by extreme weather conditions or natural disasters.
Limitations of rail transportation include: inability to change routes and timings to meet needs; unsuitability for short-haul and tiny shipments; increased likelihood of damage during loading and unloading

Air Cargo Transportation (Air Freight)

Air cargo transport (plane freight) is the movement of goods from one location to another inside a nation or elsewhere in the world by means of an aircraft. A Statista analysis states that Air India shipped almost 205 thousand metric tonnes of cargo around the world in the fiscal year of 2022. The quick delivery time of air cargo is one of its biggest benefits it does, however, have some restrictions. Look below.

Advantages of air freight transportation include:
• It is the fastest and quickest form of transportation;
• It provides the shortest, direct path, and encounters no obstacles;
• It is appropriate for carrying perishable items;
• There is less of a risk of product damage
Limitations of air cargo transportation include
• Its high cost and limited capacity.
• Not suited for the shipment of large items;
• not acceptable owing to restrictions for the export of certain products

Transportation via Sea (Ship Freight)

The primary means of transportation for international trade is the maritime mode. 90% of traded commodities are transported by ships, and the volume of maritime trade is expected to quadruple by 2050 as the need for freight develops globally.
As the primary means of transportation for international trade logistics, maritime transport increases a country’s economic worth. The following are some advantages and disadvantages of maritime travel that are similar to those of other modes of travel:
The benefits of maritime transportation include: useful for cross-border shipments; relatively inexpensive; useful for moving large and bulky items; secure way of transportation; increases the economic value of a nation through trade.
Maritime transportation has some drawbacks, like being a slower mode of transit.
• It is practical for moving items when there is sufficient lead time for shipping.
• Weather-related delays and cargo damage are possible outcomes.
• Since ships operate for weeks at a time, there is a chance that items will arrive late. Unsatisfactory delivery times may effect customer impression.

How do you pick the best logistics transportation for your company?

Logistics mode selection has a significant impact on your company’s performance. Transportation is important for timely delivery to the desired location, whether it is for routine shipments or shipments made on a temporary basis.
Here are some crucial recommendations for selecting the best shipping company for your products:
• Review the firm profile: Organizations with substantial experience in the transportation industry can assist with timely and secure product delivery. To determine how experienced the service providers are handling the delivery of products, look at their profiles. Verify the amount of employees they have on staff and make a note of the managers’ and supervisors’ phone numbers.
• Examine your business requirements: Every organisation has a unique set of needs. Find a means of transportation with the logistics and service to match your unique needs, and check to be sure they will complete the shipment with the highest care and safety.
• Consider customer support: Choose a service provider with good customer service and communication. Your transportation may be significantly impacted by it in terms of tracking orders, payments, paperwork, etc. Additionally, it is essential for creating a lasting partnership.
• Cost comparison: When selecting a transportation service, cost is an important factor. Comparing prices from several businesses is a smart idea before choosing the affordable services that match their level of quality.
• Check for Reputability: The transportation service you are looking for ought to have a good reputation. Before you ever book the service, always double-check their pricing for any omissions, look into their background, read through reviews, and double-check any supporting documentation. All of these can assist you in preventing negative circumstances in the future.
• Tech-enabled service: You need real-time updates regarding the merchandise when you depend on a third party to transport your items. You must be aware of the current position, the route, and any updates regarding product delivery. As a result, you should always seek out a tech-savvy service provider that provides these services.


Are you looking for logistics and supply chain management courses in Kerala?
Sign up with SLMT, to pursue one of the best Shipping courses in Kerala.

Upgrading Skills for the Future of Supply Chain Management
December 28th, 2022 by

The demand from customers is increasing along with their level of technological sophistication, therefore supply chain management needs to be more responsive in all areas. Innovative services and developing markets are the sources of business expansion and profitability.
All aspects of a supply chain business and decision-making processes are now driven by speed. Both individuals already employed in this field and those seeking to enter it need to be aware of the strategic importance of the supply chain’s contribution to the desired business results in order to remain competitive in this climate. Logistics Courses in Ernakulam can help you with this.
The success of an organisation, as well as the survival and development of the profession, depends on supply chain management education that is compatible with the demands of the market today. The purchasing and procurement processes sector has experienced significant effects and changes in the current market environment. Consider the evolving nature of supplier and customer relationships as well as the expansion and increasing use of the Internet to support e-commerce as examples. The emphasis on strategic goals in terms of cost and value has undergone the most substantial transformation.

Trends in supply chain management:
• Rationalising the supply base to a select group of strategic suppliers
• Centralising the purchase and procurement processes and cost tracking
• A greater focus on responding in real-time to consumer needs
• Greater emphasis on better sales, operations, and forecasting
• Searching for cost-cutting measures
• Increasing emphasis on certifications and training for supply chain management experts; rising need for knowledgeable professionals who are familiar with contemporary supply chain management procedures

Many organisations’ supply chain management teams find it difficult to keep up with the rapidly changing environment, particularly when it comes to taking quicker choices, navigating supply chains’ rising complexity and dangers, and responding to the frequent changes. Because of this, there is a need for qualified individuals who can develop responsive planning, coordinate execution, and assist in achieving targeted business objectives in terms of quality, service, and performance.

Skills Required in Future Supply Chain Management:
Technical expertise, cost accounting expertise, knowledge of e-commerce and e-procurement systems, troubleshooting and problem-solving abilities, and legal knowledge of contract management concerns are all required for project management.
The demand for qualified people with knowledge and experience in managing relationships through cooperation and measurement and who are focused on cost management will rise in the future supply chain management industry. Pursuing any one of the Shipping and logistics courses in Kerala can come in handy while aspiring for a future in this industry.

The ability to lead teams of multi-skilled employees, make judgements with limited information, plan well for emergencies, and apply activity-based costing principles to supply chain activities are all skills that organisations’ managers will need to possess.
Although it may be difficult to find these abilities, you can encourage your current employees and managers to enrol in supply chain management and logistics courses.
Future-focused logistics and supply chain management courses in Kerala are available from Reliant Institute of Logistics.

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