Sunday, May 23, 2010

KPI's for Supply Chain Excellence...................

Coming Soon.......................

Passion or Purpose

Dear friends welcome to scmpk that is your own blogg. The holy purpose of my blogg is to provide all information regarding supply chain management & Strategies in Pakistan and rest of the world. Where did this concept come from? What are the good practices in supply chain management and emerging strategies. How information technology transform the entire supply chain.  How can you transform your business in uncertain environment by implementing a competitive tool like supply chain? Why and how this concept becomes major competitive weapon for 21st century business success? All information which are important for understanding Supply chain management will be provides in easy and precise means that will definitely motivates you to pursue your career in supply chain management.

Wednesday, May 27, 2009

Seven Steps To RFID Sanity

RFID clarity is best achieved through action. Once you have completed the analysis phase, the only way to learn the true value of RFID is to start testing the technology in a desired application. Follow these simple steps for a more successful implementation:
Step 1:
Understand your visibility requirements. What items do you want to read? Where? How often? From what distance?
Step 2:
Query other end users about recommendations for trials. What to do? How to do it? Recommended technologies? There are many experienced end users who are willing to share their knowledge.
Step 3:
Move into the action phase in a real-world setting. Put tags on things, and set up readers at the points you seek enhanced visibility – outside of the lab environment.
Step 4:
Evaluate technical performance. Do you get reliable reads? Does it properly update your application?
Step 5:
Assess the economic benefits. Is it better than what you are currently doing?
Step 6:
Understand the impact. How does the technology affect business processes? Are there integration issues with enterprise systems?
Step 7:
Make a decision. Decide whether or not to move forward with a larger scale implementation; refine the trial using different processes, technologies, items and/or read points; or cease activity.

Sunday, May 24, 2009

RFID based E-toll system introduced on Pakistan Motorways

Pakistan now joins the list of growing countries where RFID (Radio Frequency Identification) based electronic toll collection is in use. For now it has been introduced on Peshawar - Islamabad M1 and Islamabad - Lahore M2 Motorways. This technology allows the vehicles to pass through toll booths without stopping and toll amount is automatically deducted from the money account on record.

How the system works.

An RFID tag (transponder) is now available free-of-cost to motorists using Lahore, Islamabad and Peshawar toll plazas. This tag is attached to a car’s wind shield. News appearing to this effect in Dawn of November 7, 2007 says:“Those who want to secure the RFID tag will be required to submit full particulars about their person, details of bank account and some other information. The NHA (National Highway Authority) staff posted at the plazas for selling of the tag will register all such details in their system.”On toll plazas, RFID Readers with antennas have been installed. When a vehicle approaches a toll plaza, the RFID Reader Antenna communicates wirelessly with the RFID tag located in the vehicle wind shield. At highway speeds (in excess of 100 kmph), the system identifies the car and charges the correct amount of toll to the bank account on record. The system which is installed in Pakistan, a vehicle will still have to stop at a booth but no human transaction between the vehicle occupants and toll booth operator is needed.
Benefits of RFID
The potential benefits of RFID virtually limitless, RFID is an old technology which transform in a new approach which provides superfluous benefit to every types of organization. I believe it is definitely a step in positive direction.
  1. It will reduce waiting lines at toll booths and save fuel.
  2. Enhance the security of vehicles in term of stealing and other means.
  3. A very interesting feature of the new system is that the required amount would be electronically deducted from the bank account of the motorist.
  4. E-toll will also have a fast tracking system installed which will detect wrong information givers. As such, in case there is no amount in the account of the person concerned the NHA electronic system will recognize it and signal stop by flashing the red light and the bar would not be lifted.”It appears in the news that after initial deployment at Lahore, Islamabad and Peshawar toll plazas, the system will be extended to all toll plazas located on the motorways M1, M2 and M3.
The electronic toll system in Pakistan has been introduced by NHA (National Highway Authority) in collaboration with NADRA (National Database and Registration Authority).
Update:News update appears in Jang. It shows 10210 vehicles have so far registered for the RFID tagged E-toll system on Pakistan Motorway Network

Value of Operational Strategy

The idea of operations strategy plays an important role in determining the overall long-term success of an organization. Developing an operations strategy means looking to innovative ways to add value for the customer in the goods and services that the firm produces and delivers. Value can have many meanings. Managers must therefore align the operations strategy of their firm with the strategies of other functional areas and with the firm’s overall business strategy.
The combination of the globalization of business coupled with advances in technology has created a hyper-competitive environment in which managers must constantly be looking for new and innovative strategies to stay ahead of the competition. To properly implement these strategies, managers need to clearly understand the core capabilities of their firm and focus their resources on maintaining and improving these capabilities.
Successful firms today are looking to develop strategies that integrate goods and services into a single product offering or “bundle of benefits,” which attempts to solve problems for customers rather than just selling those products.

Supply Chain Management

Supply Chain Management

Supply Chain Management synchronizes the efforts of all parties suppliers, manufacturers, distributors, dealers, customers, and so on involved in meeting a customer’s needs. The approach often relies on technology to enable seamless exchanges of information, goods and services across organizational boundaries. It forges much closer relationships among all links in the value chain in order to deliver the right products to the right places at the right times for the right costs. The goal is to establish such strong bonds of communication and trust among all parties that they can effectively function as one unit, fully aligned to streamline business processes and achieve total customer satisfaction.


Companies typically implement Supply Chain Management in four stages:

Stage I seeks to increase the level of trust among vital links in the supply chain. Managers learn to treat former adversaries as valuable partners. This stage often leads to longer-term commitments with preferred partners;

Stage II increases the exchange of information. It creates more accurate, up-to-date knowledge of demand forecasts, inventory levels, capacity utilization, production schedules, delivery dates and other data that could help supply chain partners to improve performance;

Stage III expands efforts to manage the supply chain as one overall process rather than dozens of independent functions. It leverages the core competencies of each player, automates information exchange, changes management processes and incentive systems, eliminates unproductive activities, improves forecasting, reduces inventory levels, cuts cycle times and involves customers more deeply in the Supply Chain Management process;

Stage IV identifies and implements radical ideas to completely transform the supply chain and deliver customer value in unprecedented ways.

Common uses

Recognizing that value is leaking out of the supply chain, but that only limited improvement can be achieved by any single company, managers turn to Supply Chain Management to help them deliver products and services faster, better and less expensively. Supply Chain Management capitalizes on many trends that have changed worldwide business practices, including just-in-time (JIT) inventories, electronic data interchange (EDI), outsourcing of noncore activities, supplier consolidation and globalization.

Harvard Business Review on Supply Chain Management. Harvard Business School Press, 2006.

Narayanan, V.G., and Ananth Raman. “Aligning Incentives in Supply Chains.” Harvard Business Review, November 2004.

Slone, Reuben E. “Leading a Supply Chain Turnaround.” Harvard Business Review, October 2004, pp. 114-121.

Saturday, May 23, 2009

Introduction to RFID

RFID is known as silent communication or object to object communication without any physical medium. Radio Frequency Identification (RFID) is a technology that uses radio waves to identify objects and read data. Windshield tags that pay tolls, security tags for apparel and identity cards that permit access to restricted areas are three common applications. RFID tags consist of an electronic device—n
o larger than a pinhead—containing an antenna and a chip. Like their precursor, bar codes, they’re often employed to track and manage inventory and works in progress. But not only are RFID tags smaller, hardier, and cheaper, they can carry far richer amounts of data. Wireless scanners can read them at a distance, without a direct line of sight, and download detailed information on entire pallets of products from them instantaneously. Paired with sensors, these so-called smart tags can even be used to automatically monitor items’ temperature, pressure and other conditions.

Methodology Implementing RFID

Involves these steps:
  1. Determine which products or processes are suited for this technology.
  2. Factors to consider include the type of data to be encoded, required read range, frequency of measurements, and environmental constraints. RFID is particularly compelling if read and write capabilities are required, the tag is hidden, surface contamination is likely, or reading multiple tags simultaneously is necessary;
  3. Choose the timing and pace for RFID adoption, given the costs, benefits and customer mandates. Also evaluate the cost of not adopting RFID;
  4. Select the appropriate RFID standard and the level of integration desired with the supply chain management software;
  5. Roll out a pilot program, starting with the highest-value products first. Expand implementation of RFID based on customer mandates, and as cost and benefits warrant expanding the program.
RFID can be used to:
  • Streamline the flow of products through the supply chain, thus reducing overall inventory levels and working capital;
  • Decrease the time and expense of managing inventory, while improving the efficiency of shipping, receiving and order processing;
  • Reduce labor costs, product tampering and theft;
  • Improve forecasting and invoicing accuracy;
  • Track parts, finished goods, and reusable containers through manufacturing and assembly processes;
  • Ensure that production procedures are followed and pinpoint the source of production issues; Remotely monitor the conditions of components, products and equipment; Increase security and control access when placed on personnel badges.
Use of RFID technology can increase business productivity and reduce associated costs. To ensure that companies benefit from the advantages RFID provides it is important to understand how to adopt this technology. By analyzing current practices and procedures 8 main areas of benefit can be identified. These are:
  • Improved Productivity and Cost Avoidance
  • Decreased Cycle Time and Taking Costs Out Reduced Rework
  • Reduced Business Risk & Control of Assets
  • Improved Security and Service
  • Improved Utilization of Resources Increased Revenues Exception Management
Selected References: