All posts by lorenaguerrerom

Inventory Forecasts

icon-forecasting-and-replenishment

Forecasting is the prediction of what happens to a given element within the framework of a given set of conditions.

The basic objective of a forecast is to reduce the range of uncertainty within which decisions are made that affect the future of the business and with it to all parties involved. Although the prognosis does not replace the administrative judgment in the decision making, it is simply an aid in that process.

The forecasts are used in the process of establishing goals both long and short term, thus forming bases for the development of plans, at a general level and in the different areas or units.

In the production area, forecasts are made of the cost and availability of the raw material, the cost, and availability of labor, when maintenance will be required for the equipment, what capacity will be necessary to meet the demand.

Depending on the timeframe they serve, they are classified as:

Short term. They are used to design immediate strategies, are employed between middle managers and front line managers.

In the medium term. Joint short and long term, useful for decisions at all levels.

Long-term forecasts. Required to set the general direction of the organization, are generally made for senior management to use them in strategic planning processes.

According to the intensity of data usage, they are classified as:

Qualitative forecasts. They are based on the judgment of individuals or groups of individuals, can be presented in numerical form but are generally not based on historical data sets.

Quantitative forecasts. They employ significant amounts of previous data as the basis of prediction. They may be:

  • Simple (non-formal): projecting past data into the future without explaining future trends.
  • Causals (explanatory): try to explain the functional relations between the variable to be estimated (dependent variable) and the variable or variables that explain the changes (independent variables).
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Logistics with Freight Forwarders

A freight forwarder mainly acts to manage the transits of international products so that once they have been unloaded, they make the journey to their final destination.

Being transportation one of the principal functions for developing a logistics program, a freight forwarder acting as an intermediator between the shipper and the consignee their main objective is to optimize through the standardization of transport and
integrate processes and costs that in turn can also act as a consolidator, grouping the merchandise or cargo to monetize the transport of a container or other cargo unit.

In this order, this type of industry allows to assist in the preparation of the shipment, suggested prices on the costs of the air or port charges, consular fees, costs of special documentation and insurance, among other variables.

They can also recommend packaging methods that will protect the merchandise during transit, and if the exporter so requests, they can reserve the space required on a ship, plane, train or truck.

In the economic aspect, freight forwarders can boost trade between economies at very different stages of development because they can avoid artificial barriers that delay delivery and increase the cost to the end customer.

The video presents an example explaining how a freight forwarder works, the services they offer in order to help logistics clients to manage merchandise.

Sources:

http://www.emb.cl/negociosglobales/articulo.mvc?xid=1511

http://www.ateiavlc.org/el-transitario/

 

Ford’s Green Manufacturing

As a international, very recognized and leading brand in the automotive sector, Ford, has been working to reduce the environmental impact from their supply chain involving different green programs to their processes, they have launched the Partnership for A Cleaner Environment (PACE) program that has grown to more than 40 suppliers in 40 countries, the program was originally focused on water and energy conservation, but has now grown offering best practices for reducing waste, carbon dioxide and air emissions.

Their green energy production plant is located in Dagenham, England. On the main plant is the Dagenham Diesel Center, the first automotive plant to receive from the on-site turbiness, 100% of the electricity for its manufacturing needs.

Now Ford’s European vehicles are using mor than 250 pieces containing non-metallic recycled materials (plastic, rubber and cloth). What each year supposes that some 14,000 tons of materials do not finish in the landfills. They have also developed a complete recycling program, which includes the “design for recycling” guidelines, improves the use of recycled materials and reduces the use of hazardous materials.

Last but not least, Mary Wroten, senior manager of Ford Supply Chain Sustainability said, “As a company, it’s important that we make quality products and minimize the impact on the environment by doing things the right way”.

ford-sustainability

Sources:

https://media.ford.com/content/fordmedia/fna/us/es/news/2017/03/13/embracing-ford-green-practices-suppliers-showcase-environmentally-friendly-manufacturing.html

http://www.ford.es/AcercadeFord/MedioAmbiente/fabricacionverde

 

 

Quick Pallet Maker

qpm_icon_test_small

Quick Pallet Maker is pallet loading and package design software application that allows the user to calculate optimal secondary package dimensions and pallet arrangements, thus reducing shipping costs, it was developed by Koona, LLC a US-based Software Engineering company.

They are mainly focused on small and medium sized companies, particularly manunfacturers and packaging operators. But not leaving behind corporations.

The software is pretty user friendly and as said before it includes different key features that will allow the user to perfectly manage their packaging operations making it more efficient:

  • Calculation: Complex features for calculating the ideal dimension of each item so as to fit the latter’s capacity.
  • Container fill: Assists the user in organizing multiple-sized objects in a container. It takes into account the dimension of each box and suggests the way how they should be heap up so as the whole cargo gets in.
  • Optimizing costs: Indicates the user how large each pallet should be so as to get a maximum number loaded into a single cargo.

Quick Pallet Maker also has a YouTube channel for their customers to get free tutorials on how to apply the software features, for example, the presented video allows the customers to learn on how the “Filling Containers with Boxes” feature works, providing them to calculate and better fit their delivering order.

 

 

Terra Verde Sustainable Proposition

Terra Verde

Terra Verde is a brand new sustainable concept developed by Zara Muniz as a “startup” offering seasonal, 100% organic and locally (Dominican Republic) produced fruits and vegetables. And also, traditional products, so they take advantage of all the products that are not sold or people rejects. Natural inputs that are allowed under the norms of the organic standard, in addition to promoting biodiversity by growing different fruits on the same plot to create a self-sustaining ecosystem. We also have a worm farming project to produce our own compost.

For cultivating their products, they only use natural inputs that are allowed under the norms of the organic standard, in addition to promoting biodiversity by growing different fruits on the same plot to create a self-sustaining ecosystem and also have a worm farming project to produce their own compost.

By the time, they produce 70% of their products in their Rancho Arriba project, which has a double certification, are also supplied with other certified producers, and others not certified but undergo due supervision and regulation.

Value proposal. Development of ecological activities of social entrepreneurship in the R.D. market, creating one of the first ecological markets of quality. Homemade products, such as jams using everything that is left over in taking advantage of the decline and promoting the practice of recycling.

Evaluation of triple sustainability

Financial & Economic: Domestic consumption and the possibility of exporting to other international markets.

Environmental: Sustainability in the production of our lands, which allows the renewal of the natural resources that contribute to maintain the ecosystem.

Social: Satisfy the consumption at national level obtaining the healthiest foods that nature can provide. Talk about ecology and health.

 

References: http://terraverde.do/

https://www.facebook.com/terraverderd/

https://multicaribbean.com/web/terra-verde/

Adrian Tropical’s Distribution Network

Resultado de imagen de adrian tropical

Adrian Tropical is a Dominican food restaurant located in the Dominican Republic opened since 1997. At the moment it has 4 restaurants located in different zones of Santo Domingo, D.R. and an operation and warehouse center called Operadora de Servicios Alimenticios, even though every restaurant has their own storage for their daily production.

For Adrian Tropical these are the following performance characteristics according to the cost factor:

Inventory: As they provide food to their final customers they apply First Expiry, First Out (FEFO) method, but at first used to apply First In, First Out (FIFO). At Operadora, they keep a high inventory as they are supposed to supply all the ingredients and pre-processed food to the four restaurants. On the contrary, the four restaurants keep a small and adapted inventory according to their demand.

Transportation: The company has three trucks to deliver all the goods to each restaurant. Operadora had defined a delivery time to each restaurant, the goods are delivered twice every day.

Facilities: At the moment, Adrian Tropical has a big Warehouse located nearby one of their restaurants that is in charge to receive raw materials that later will be delivered to the restaurants and also is an operation center where they pre-processed some of the food that they sell; and four restaurants that has small storages to supply their demand.

Information: The information flows between all the four restaurants and Operadora when they send the ordering request for all the goods they need. Also, there is an information flow between Operadora and all their suppliers in order to pre-processed the food that will be sent to the restaurants.

Distribution Network

Source: Own elaboration.