And the ability to tell Wall Street to take a hike. I was absolutely disgusted when I read this piece on the intersection of Wall Street and Private Equity with the Supply Chain and saw the following:
one large retailer had the opportunity recently to save an expected $50 million from a supply chain network redesign project, included shifting from a number of smaller distribution centers to larger ones. The project had a great ROI and the capital was available — but the company delayed the project just because of the potential for Wall Street to view the project as too risky operationally and financially.
There’s wanting a good Return On Assets and then there’s pure stupidity. What do you think this is an example of?
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In addition to the presentation of 18 theses around the continued scarcity of energy resources, Volume 1 of the Transportation & Logistics 2030 report on how supply chains will evolve in an energy-constrained, low-carbon world by PriceWaterhouseCoopers and the Supply Chain Management Institute also identified some (emerging) opportunities for transportation and logistics operations that are worth close scrutiny by any provider looking to differentiate themselves in the marketplace.
The report provided opportunities in four areas:
- Products & Services
- Finance & Accounting
- Processes & Organization
- Strategy & Policy
Today, we’re going to overview the process, organization, strategy, and policy opportunities.
Processes & Organization
- Innovation Management
Innovation management has not yet been systematically implemented by the majority of logistics companies and offers a significant opportunity for substantial benefits for operations of all sizes.
- Scenario Culture
Companies that “think in scenarios” and plan for “alternate” futures can make decisions that maximize their likelihood of success.
- Research Cooperation along the Supply Chain
Research efficiency can be significantly enhanced by the participating in research initiatives.
- CO2 Driven Supply Chains
Companies may be able to realize competitive advantages over the long-term by reducing CO2 emissions in their processes, documenting such reductions, and actively promoting them to the marketplace.
- Total Emissions Management
Leading companies that have already implemented total emissions monitoring systems can take actions to reduce their total emissions and gain additional customers by way of their reduced environmental footprint.
Strategy & Policy
- Local Patriot
As consumers demand more locally produced products, those logistics companies that focus on efficient “local” transportation could be the the preferred partner for “local” companies.
- Corporate Social Responsibility & Ethics
Logistics companies that develop expertise in the design and implementation of sustainable supply chains will be able to differentiate themselves and win more customers through combined transportation and consulting services.
- High Tech Logistics
High-tech logistics providers that provide the latest technology for interaction will gain prominence among customers looking for more visibility into, and control over, their supply chains.
- Home Delivery Specialist
Logistics service providers who are able to develop a full,flexible palette of intelligent city solutions which fulfill any newtraffic restrictions could find a promising market as homedelivery specialists.
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