The decrease of air freight, an opportunity for commercial airlines?
It is a bad time for air freight. In June 2019, the world traffic fell by 4.8% in tonne-kilometer (TKM) compared to the same period in 2018 (1). The International Air Transport Association (IATA) attributes this decline to rising kerosene prices, Sino-American trade tensions and protests in Hong Kong – forcing world’s first cargo airport to shut down temporarily. Contrary to public opinion, the decline in traffic affects both commercial airlines and all-cargo airlines...
All you need to know about the Ideation process
Ideation is defined as the creative process of generating, developing and selecting ideas. Starting from key insights to be challenged and reframed, ideation uses creativity levers to foster innovation. As part of the initial phases for new product/process development, ideation is therefore a key element of the innovation process.
Unleashing your potential: outsourcing strategic processes
Outsourcing strategic processes can bring more added value to secure performance and enable internal resources to focus on the big picture. When it comes to new supplier identification, negotiation or strategic sourcing process, many of our clients need to increase the level of expertise and empowerment without adding headcount. By outsourcing these processes to a dedicated team, the client can also focus on what is most important to its business – whether it’s innovation, restructuring, or reassessing the market to meet their customer’s needs.
5 digital solutions serving production and maintenance at Airbus
The world air traffic, catalyzed by the expansion of economies, in particular in India, China and Middle East, meets an unprecedented growth. Airbus plans a demand close to 37,400 aircrafts until 2037. This represents a yearly average evolution of +4.4%.
Business Case: Supply Chain Network Design for a Retailer
A client in the retail sector decided to rethink its supply chain organization to face the challenge of growing e-commerce[...]
Industrial benchmarking: the efficiency of indirect production functions
The consulting firm KEPLER conducted a global benchmark on the efficiency of indirect production functions, through more than forty factories across various industries (electronic, automotive, appliances, etc). Pierre Rougier, founder and associate at KEPLER, explains the outcome of this study and the initiatives implemented to address the issues.
Quick repricing or how to generate significant savings with tail suppliers (video)
Companies have increasingly large supply bases for various reasons: acquisitions, decentralized procurement, uncontrolled supplier portfolios, or process weakness. Due to the high number of suppliers, supply processes, and resource constraints, significant productivity goes unrealized. Strategic sourcing teams focus on high-value-add suppliers and strategic projects while plant buyers address tactical suppliers when issuing orders. At a time of increased cost pressures and complex supply chains, a significant amount of spend goes unaddressed year over year.
The use of machine learning to generate quick savings and gain in price consistency
The purpose of this article is to share our experience in the use of machine learning to generate quick saving opportunities and homogenize purchased pricing across business units / regions in large groups.
The Cost-To-Serve approach or how to optimize your total costs of ownership (video)
In an increasingly competitive market, the cost of ownership is at the heart of industrial stakes. With the Cost-To-Serve approach, KEPLER helps you improve your margin thanks to a fine driving of your operational costs per product line and customer.
Operations Flash Diagnosis: how to build your transformation roadmap
Faced with the many challenges that companies face (customer satisfaction, competitiveness, improvement of EBITDA and cash flow, etc.), it is clear that they don't always have the time, experience, resources , the right benchmarks and the right methods to respond to these universal issues. And if finally, the major stake was not the achievement of these objectives but more in the "how to do" with a logic of good first time, because one can not afford anymore to look for solutions, it is necessary to have immediate results.
The Monozukuri approach (video)
The companies’ supply chain has become increasingly complex and the demanding market is constantly putting pressure on companies to come up with innovative solutions to maintain their competitive advantage. KEPLER shows how the Monozukuri approach can help you re-boost your cost competitiveness.
5 tips to make your IT purchasing performance sustainable
The rapid emergence of new technologies, the price opacity of main market players, the experts shortage in IT procurement are all elements justifying a pressing need to bring performance and professionalism to IT Purchasing. Here are 5 tips to make your IT purchases durable
10 key trends to understand Supply Chain Management
In few years only, Supply Chain Management became one of the trendiest topics for organizations facing globalized markets. But in parallel, it also remained one of the foggiest topics for managers at every level. Sticking to logistics origins, we could stand our ground on initial Supply Chain Management definition (a system reaching all processes, flows and resources needed to deliver the right product/service at the right place, in the right timing, with the right quality, quantity and cost). But I think the best way for Managers to keep an up to date vision is to have a clear understanding of the main trends shaping business environment. Through this exercise, we clearly see how the essence of Supply Chain Management (systemic approach, vision sharing, animation principles…) is essential to face all challenges emerging.
Supply Chain: Logistics Masterplans
The industrial footprint of major international companies has continued to grow over the last thirty years without however leading to a streamlined logistical organization. The topics currently dominating the Supply Chain represent as much a takeover of the logistics organizations as a very strong expected potential in terms of expected gains.
Supply Chain optimization: a total cost approach
Industrial Europe is currently going through a period marked both by strong competitive pressure from low-cost countries and a narrowing, a direct consequence of a consumption crisis in local markets. On the front line since 2008, the automotive sector was quickly forced to adapt and work on the flexibility of its model in order to maintain a robust economic performance.
Sourcing Offices: a shift of paradigm
Over last decade, sourcing offices became a major piece within globalized footprint of western retailers. Asian countries and China in particular have been privileged destinations for those entities due to cost attractiveness of the area. After a first era of development and opportunity catch up particularly positive and characterized by consistent purchasing gains, most of these Sourcing Offices are now searching for their second breath.
Lead suppliers to win with you – The importance of supplier development
Every company’s business model should be to win by delivering valued, quality products, services and solutions to customers that provide the lowest total owning and operating lifecycle costs. This business model begins and ends with the customer. To execute this business model, it is important to develop and sustain a supply base that is an integral part of the extended supply chain, and that can provide the right part, to the right place, at the right time, at the right quantity, at the right quality every single time.
Algorithms and Artificial Intelligence: New Horizons for Cost Estimation and Modeling?
The progress made in the last 20 years in the field of statistics have made it possible to develop predictive algorithms that are much more efficient, especially in terms of precision. What are the possible applications in the field of cost estimation and modeling? While traditional analytical models based on the manufacturing processes of the product or service are still widely used in our Cartesian society, statistical models are gradually imposing themselves to their formidable efficiency. But rather than an opposition, these two methods are enriched and complement each other.
Do’s and Don’ts of International Operations Development
The development and securing of international operations is a perilous exercise whose stakes range from the need for robust upstream reflection to the perpetuation of the system. From its various experiences of international business support, KEPLER has learned has learned the best practices to apply in this process.
Supply Chain in retail: prioritizing the shelf
For fifteen years, information systems have taken a leading role in the management of flows: ERP communication and collaborative approaches between manufacturers and retailers (SSM and now GPFR) have become the industry standard. Even better, stocks are now controlled on the basis of actual consumption (VMI), completely relieving the sales areas of responsibility of supplies. Yet despite...
Supply Chain Management: is Blockchain the new RFID ?
It has been hard lately to work on Supply Chain Management topics without hearing a word about Block Chain technology and all the potential progresses it carries. For people involved in our field it can sometimes sounds as an echo of what happened with RFID technology.
8 tips for a successful supplier development program in China
For the last 5 years the labor cost has kept increasing in China at a huge pace as the manufacturing labor cost has more than doubled from 1.15 EUR/hour in 2009 to 2.6 EUR/hour in 2014. Moreover, the exchange rate dropped from 9.59 to 8.18 CNY/EUR for the same period and today reaching 7.30, that is to say an increase of 24% for “made in China” products. Most of the cost driving factors have the same trends leading to the overall impact of decreasing gradually China’s cost advantage.
9 Best Practices to Boost Supplier Innovation
Capturing and successfully implementing supplier innovation is now considered a strategic issue for most companies, who see it as a major value creation driver. Here are some good practices, results of recent projects, as well as recent activities of our Think Tank.
9 Tips for Procurement to Impact Revenue Generation
Over the past 20 years, the Sourcing function has evolved from Cost Reduction To Total Cost Management To Risk Management gaining more and more strategic impact. However, Sourcing initiatives are still contained to bottom line impact. In this article, we will share real cases coming from various industry sectors (automotive, pharmaceutical, aerospace…), where Sourcing Organizations have generated Revenue Impact through specific initiatives or organization design.
5 Best Practices to Better Control Your Distribution Costs
You are well aware of it and yet you can not put exact figures on it: all your customers are not equally profitable or sometimes they are even unprofitable! Depending on which market you operate in, it is estimated that you lose money on up to 20% of your customers. This loss is not so much due to what they buy from you, but more because of the way your organisation makes the products and/or services available to them. In this article, we share details of concrete cases in the Retail and Consumer Goods sectors, where the client organizations have had to review their approach to their supply chain costs in order to make the right decisions and effectively manage their margins.