Showing posts with label Supply Chain. Show all posts
Showing posts with label Supply Chain. Show all posts

Sunday, October 18, 2020

3 Core Supply Chain Strategies for Executives to remain Competitive

So here in this blog we will be looking into the three supply chain strategies that a supply chain executive should know to remain in the competition, where these strategies belong to the Industry 4.0 supply chain networks.


Strategy 1 – Real Time Network Based Architecture

Industries are already leveraging the advantages of this Network based customer services. Uber, Airbnb, Alibaba and Amazon have already deployed this network-based-architecture that provides multi-party capabilities across a network.

It is that network platform that enables all the capabilities along with providing control over the tower level visibility, collaboration, analytics, planning, and execution is core to future competitiveness. Even the simplest of transactions involve multiple parties, such as a customer, brand manager, co-packer, supplier, carrier, 3PL, and distributor.

This hub technology is designed to gather data in a point-to-point/spoke-to-hub fashion, decide what to do about changes in demand, capacity, or supply based on the hub variables in isolation, and then share some of the stale or latent data, post-processing, with some of their spokes, both inbound and outbound. 

Strategy 2 – Federated Master Data Management

Now-a-days data is considered to be our currency. The multiple ERP instances are similar to a federation of entities. This data/currency are currently trapped in our ERP pipeline instances and shared in a hub-and-spoke fashion in a one-to-one trade relationship with network partners. Also, those partners or the companies who has those data and export it to other data warehouse or data lake are creating latency and staleness in the data which devalues this currency in terms of decision making across network partners.

It is always better and handy to have a strategy where network trading partners opt into/onboard onto the network and share both their master and operating data with other trading partners based on a secure permissions framework across the network. This data exists only once and is federated to trading partners based on the permissions framework. Given that the data is not copied or duplicated between echelons, tiers, or nodes across the network, it is by definition real-time.

Also, we can increase the leverage on the data given that this type of item cross-referencing is built in as part of the architecture.

Strategy 3 – Actionable and Autonomous Prescriptive Analytics

Knowing the nature of network-based trade relationships, we will need to model that is the entire end-to-end supply chain network in order to correctly analyze and take action on problem resolution and opportunity creation. That is the only way where as a supply chain executive we can potentially benefit or at least limit the pain across all parties. Since these problems or opportunities exposed by the analytics could manifest in strategic, tactical, or operational timeframes, the foundation should be seamless, offering services, algorithms, and analysis that run across the network representation in real-time, whether we are solving problems predicted to happen in 6 months or during a delivery scheduled for later this afternoon. Also, if we as a supply chain executive have deployed Strategies 1 and 2, this foundation is already in place.

This end-to-end real-time supply network platform enables the ability to test out the new supply chain policies, network resiliency, the feasibility of strategic or tactical plans, activate alternate parts or suppliers, modify modes of transportation, or even add additional shifts at a plant.

There may be many ways actually to solve the problems related to demand, supply, logistics, and fulfilment in a network. The analytics workbenches must have the real-time access to every material variable in the network. Such that the traditional systems typically only give us the one way to solve a problem, due to static lead times and stale data

Summary

Thought the business continues to march toward digitization, companies must deploy strategies that provide the right foundation to compete on this basis. These three strategies outlined in this brief will provide the platform and architecture to enable this foundation and provide the capabilities to compete moving forward.

Happy Learning😀. Please share your valuable comments.

Optimising your Covid-19 Pandemic Response

 








Companies need to act differently with the rise of this pandemic situation especially with the enormous gaps in data, processes and systems. I am going to be talking about four capabilities that the firms need to incorporate in their strategy in order to maximize their success, achieving supply chain agility and resilience in order to be prepared for any unforeseen happenings in the future.

The impact of this Covid situation has been different for different industries. For example, the E-Commerce industry has grown over two folds and producing growth which was not expected for another three years. While some of the stalled industries including the restaurants, retail etc has been hit and recovery still lies ahead.

  • Eliminating information delays: It is very essential that a change in demand would be reflected across all stages or parts within that supply chain so that all suppliers are well informed and within the loop enabling them to be more responsive.
  •  Real-time visibility : Having real time visibility into every order or shipment would mean having access to all those inventories information. This in turn means that having information on the consolidated demand for each good across the globe. This helps to match demand to supply continuously allowing us to relocate the inventories effectively.
  • Automate routine task: This helps to free up many staff who can add more value to the organization. These set of workers can be effectively utilized for solving problems, making better choices and coming up with low cost options.
  • Same platform: If the suppliers, carriers, customers all worked in a similar platform, would mean that sharing information such as plans, inventories etc  would be much simpler. This can help to reduce errors and many other inefficiencies which commonly arises.


Unilever to Check for deforestation in its supply chain


Hello all, my name is Vikas S Menon and I am a 2nd year MBA student at Amrita school of business. Hope all are doing well. I hope you have read my previous blog. If you haven’t read, type #SCM in search, and you will find me.
 
So let’s begin,
 

An interview with Unilever’s chief supply chain officer Marc Engel told that tracking the first mile of a supply chain from field to processing plant is been difficult for larger companies. Recently, Unilever has come up with an idea of using geolocation data and satellite imaginary to find out the places where deforestation has occurred. With this technology, it will be helpful to understand the exact place from where the raw material is coming for any product. Unilever also stated that they are trying to achieve a deforestation-free supply chain by 2023. Unilever also published the details of suppliers, refinery and mills, and other manufacturing units were verified by a third party to have certified sustainable sourcing. It is possible to see from satellite images where deforestation has occurred, but it is more difficult to see if Unilever's suppliers have produced crops from these regions. The company is partnering with Orbital Insight, an analytics company to help it see a crop journey from the field to a processing plant, known as the first mile of the supply chain, that uses geolocation data from cell phone signals to track where raw materials are developed and transported. Unilever can alert the suppliers, not to source from farms where deforested areas. Orbital Insight has trained algorithms to differentiate between deforestation and areas where trees can be cut as part of a managed forest. Engel said that this technology is currently being used to track soya bean plantations in Brazil and palm oil production in Sumatra. The CEO and founder of Provenance, Jessi Baked stated that communicating information like carbon footprint or animal welfare or other product ingredient information to consumers will help the brand on a steady track. A transparency initiative with Princes group (food manufacturer that makes Italian brand Napolina) to provide QR codes on cans connecting the specifics of the procurement and the commodity path from the agricultural cooperative to the grocery shop. The main success is such a process is all about the correct framework with proof to be shared with customers to meet the standards of the brand which is still not met.
 
Is there any such technology adoption happened in other companies? Can transparency be good for the growth of a brand or protecting the trust in the brand by consumers? Let me know your opinion and looking forward to feedback.
 
Information collected sources:
 

Supply chain decision areas in textile industry

 

Hi everyone. I’m Arun R from final year Amrita School of Business. This blog is about the insights I got from supply chain decision at textile industries.

Supply chain management is the centralized management of flow of materials, information, and finances as we move from supplier to manufacturer to wholesaler to retailer and then to the consumers. There are three main flows in supply chain management and In textile industry also there are three main flows. The product flow which includes the movement of textiles from supplier to customer or the customer returns the product back to the supplier. In information flow the transmitting of orders and updating the status of the delivery is included and in financial flow consists of credit term, payment schedule etc.


There are 4 major decision areas in textile supply chain management.

·       Location decision: this is the first step in creating a supply chain. Geographic location for production facilities, stocking point and sourcing points are important. Once the size, location is determined then the product flows through to the final customer. These decisions are very important for textile industry as they represent the basic strategy for accessing the customers and have an impact on revenue.

·       Production decisions: these decisions include what type of textiles to produce and in which plant it should be produced and also the places at which these should be allocated. Different textiles should be given to different locations according to the taste of the customers and hence it is very important. Also, the capacity of the manufacturing facility should be considered as an important factor. Workload management and quality control measures are also important in production facilities.

·       Inventory decisions: these decisions are related to the management of inventory in textile industry. Inventory is an unavoidable one in every supply chain. They exist at every stage. They can be raw materials, or processed textile materials etc. They can also be in process materials. Holding of inventory is costly an effective management is needed for this in the supply chain operations.

·       Transportation decisions: the mode of transporting textile materials to different locations are very important and they are closely related to the inventory decisions. Transportation through sea and railway is chelated but air transportation means the product reaches at the destination quickly. Customer service level and geographical location plays an important role in transportation decisions. This is cost is high and therefore much care should be taken for this.

All these decisions should be made in such a way that the profitability of the textile industry should not be affected and all the decisions should be considered an important one.

Role of Logistics Management in Construction Industry

 

This is Vembu Raj T, pursuing my MBA second year in Amrita School of Business, Coimbatore. Today’s my blog is on topic “Role of Logistics Management in Construction Industry”. From this blog we would know about the roles of a typical logistics manager do in Construction Industry.


Logistics management as the process by which supply chain resources are prepared, applied and managed, typically from the point of origin, such as the aggregation of raw materials, to the point of destination, i.e. the supply of goods to the correct position on the construction site. It is critical for successful logistics management to improve quality and productivity, with a positive overall impact on cost and time. Strong logistics management, for example, means that the staff can carry out the necessary tasks without delays caused by the delivery of materials to the site.

 Logistics management involves the integrating of many activities:

  1. Resource assessment.
  2. Lead time assessment.
  3. Supply and demand planning.
  4. Sourcing and procurement.
  5. Production planning and scheduling.
  6. Packaging and assembly.
  7. Inventory management and order fulfilment.
  8. Inbound and outbound transport management.
  9. Warehousing.
  10. Materials handling.
  11. On site vehicle and plant management.
  12. Waste Management

As part of logistics management, construction consolidation centers (CCC) may be used. There are areas similar to, but not actually on-site, where shipments are made and processed. They are then, as and when needed, brought to the site on a 'just in time' basis. This has the advantage of keeping the site clear of barriers, minimizing the necessary storage space and ensuring that the logistics manager is aware of the near-at-hand availability of the products.

Saturday, October 17, 2020

Supply Chain will be affect by EVs?

According to a recent analysis from Transport Intelligence (Ti), when the internal combustion engine is phased out in favor of sustainable fuel technologies, vehicle supply chains will undergo a dramatic transition. There is no question that there will be a significant effect on supply chains in the quickly accelerating EV industry. In 2018, global EV sales rose to more than two million units, a year-on-year growth of 63 percent. The entire powertrain supply chain will be changed, shifting the types of products, the distribution systems used to transport them, the markets of origin and destination, as well as the tiered character of the supply chains of the automotive industry.



There is a paradigm change from mechanical engineering to electrical and computer engineering like the materials used. The economics of constructing these components and manufacturing them is somewhat different. This has enormous consequences for how the supply chain for vehicles is ordered. The varying existence of the interconnection of components is one important distinguishing feature of every An EV supply chain that will separate it from IC supply chains. Whereas the relationship between components is primarily kinetic in IC cars, the relationship between electrical and electronic components is dependent on the electron movement. This suggests that the essence of the interfaces of various modules is very distinct. This has serious supply chain effects. 

It is also necessary to bear in mind that not only the components required for the vehicles themselves but also the components needed to have an adequate number of charging points for the EV infrastructure. An essential part of the move to EVs would also be wires, sockets, and other accessories. Lithium-ion batteries are one factor that is actually in high demand, and this causes a major burden on supply chains. Producers and retailers need to face these problems head-on to ensure the success of the EV industry. Aside from supply, another major issue is that cobalt extraction, the main battery ingredient, is currently concentrated in one region, the Democratic Republic of Congo. As well as the environmental effects, there are questions about the morality of the cobalt mining industry. The hunt is on for replacements to the already commonly used cobalt-containing batteries, so we might well see manufacturers in the future exploring some of these. EV giants Tesla has recently made an investment in lithium phosphate batteries, which demonstrates a big shift in the global battery supply chain for EVs.

Besides, however, the method of producing batteries has grown beyond the major automotive superpower economies in terms of materials, capabilities, and current processing systems. Moreover, China is the main manufacturer of lithium hydroxide used in electric car batteries, but it is also embroiled in trade disputes with the United States at present. This has been compounded by the fact that the COVID-19 outbreak is triggering manufacturing costs and logistics problems, so the worldwide supply of lithium hydroxide has been stopped. In general, in the supply chain, there must be a more coordinated strategy, with both stakeholders working together to develop the market. In their approach to producing EVs, producers would need to be agile by evaluating their supply chain and searching at substitutes in terms of vendors. Both the supply chains will need a long-term plan to ensure that the supply of batteries to EVs continues at a reasonable rate.

References:

https://www.pwc.com/us/en/industries/industrial-products/library/electric-vehicles-supply-chain.html

https://www.supplychainbrain.com/blogs/1-think-tank/post/31673-how-demand-for-electric-vehicles-will-impact-the-supply-chain

https://www.mhlnews.com/transportation-distribution/article/22055539/electric-vehicles-will-revolutionize-transportation-supply-chain


India's supply chain success phase due to scrimmage with china & COVID.

 

    India seems to be working on the latest package of offers to lure businesses moving away from China, with businesses from Samsung Electronics Co. to assembly partners of Apple Inc. expressing interest in investing in the South Asian country. In March, the government of Prime Minister Narendra Modi proposed rewards to made niche businesses — electronics producers — liable for a payout of 4% -6% of their incremental revenue over the next five years. The result: about two dozen firms promised $1.5 billion in investments to set up the country's cell phone factories.Besides Samsung, Hon Hai Precision Industry Co., branded as Foxconn, Wistron Corp., and Pegatron Corp. are others who have shown interest. India has already provided similar offers to pharmaceutical firms and aims to include several industries under the scheme, which could include vehicles, textiles, and food manufacturing.


 Although companies have been aggressively trying to diversify supply chains during U.S.-China trade disputes and the coronavirus epidemic, despite the nation making it easier for companies to open shop, it has not yet converted into big profits for India. According to a recent survey by Standard Chartered Plc, Vietnam remains the most favored destination, followed by Cambodia, Myanmar, Bangladesh, and Thailand. One of the first ports to settle for closer inspection of Chinese imports was the Port of Chennai, a vital import center for automotive and technological products. Imported goods from India were also held back by Beijing in Hong Kong and Chinese customs in response. Tensions with China may also have a big effect on the pharmaceutical industry in India, which is the third-largest in the world by volume, accounting for 60 % of the world's overall exported drugs and medicines.

In terms of gradual investment in supply chains within the country over the medium term, there is a fair possibility for India to benefit. These projects seek to increase India's share of the gross domestic product in manufacturing. There is a risk for carriers to circumvent ports and, as a result, manufacturers with suppliers located in India and China can prepare inventories to ensure that production schedules can be fulfilled if port congestion continues and Chinese imports are subject to additional strict customs regulations or tariffs, the DHL report noted. The Economic Times claimed that Samsung plans to produce $40 billion worth of smartphones in India and could move a large part of its production from Vietnam and other nations, citing individuals it did not name. Samsung didn't respond to newspaper inquiries. According to analysts led by Neelkanth Mishra at Credit Suisse Group AG, the incentives would help bring an extra investment of $55 billion over five years, contributing 0.5 percent to India's economic performance. This could move an additional 10 percent of global smartphone demand to India in five years, most of it from China, they wrote in a study on Aug. 10. That complements Modi's target as part of his 'Make in India' policy to increase the share of manufacturing in the economy to 25 percent from the current approximately 15 percent. His government has now cut corporate taxes to one of the lowest in Asia, aiming to draw new investments in an economy that is heading for its first recession in over four decades this year.

References:

https://www.lloydsloadinglist.com/freight-directory/news/India-China-standoff-could-impact-global-supply-chains/76921.htm#.X4r9WdAzZPY

https://www.hindustantimes.com/business-news/china-s-loss-may-become-india-s-gain-in-shifting-supply-chains/story-1QP3CPqoYfjKOCw5ZQIrXL.html

https://www.india-briefing.com/news/covid-19-india-impact-supply-chain-china-19724.html/

Friday, October 16, 2020

Supply Chain behind Apple iPhone

 Hello Everyone I am Dharunanand R, pursuing my final year MBA from Amrita School of Business, Coimbatore. In this blog I am going to share the supply chain behind Apple iPhone 


There is no doubt that Apple delivering millions of iPhones in the first week of launch is completely insane and no other company receives this amount of orders that Apple receives and there is no company that delivers millions of anything in the time span of one week so this lands up with the question of how does Apple shipped 37 million units of the iPhone 11 series. To do this Apple has a vast and largely logistics network to bring the materials needed to make the iPhone in China and then eventually ship the thing out to people to unbox than use the process starts with the components coming from 43 countries, although does have suppliers from all around the world for its raw materials and rare earth materials to make the iPhone.







80% of the global rare earths supply which has an integral part in iPhone comes from China. Most people think that when they make a product for instance the iPhone the raw material goes into the factory and ready-made iPhones come out the iPhone is not a mainly a china made product. iPhone is no exception it's displays are made in Vietnam, the batteries are made in China the camera and rear-facing cameras made by Sony in Japan and Semiconductor is designed and made in Philippines. For a single product of the iPhone like the a-13 chip, which has parts made from all over the world the design team for it is in Israel but the manufactured in Taiwan and in the end all the stuff has to come to final assembly in China where all parts of the iPhone like the processor screen and the sensors have to be assembled into one iPhone which the consumer will unbox .

Apple normally starts production of its phones in early June or May and continues its production until they have the right amount but Apple does not send the iPhones as soon as they're made - everywhere the iPhones will rest in China until right before launch when they are shipped iPhones are shipped to distribution centers around the world including Australia China the Czech Republic Japan Singapore and the UK .

The question here is that Apple choose Planes for shipping instead of Cargo, The reason is that, Apple needs to send iPhones fast to make sure that they are out there so people can buy them. Number two Apple can because a phone is small and you can fit lots of iPhones on  plane and adding the high price of the  iPhone it makes economical . Now with the introduction of iPhone 12, the box is 40% smaller, which makes way for more economical shipping process.

When the iPhone goes on sale Apple can't relax because it has to monitor which configurations are selling the most and make sure there's no pile of iPhones at the store because the design of the Apple Store has little storage products and a lot more space dedicated customers this means an Apple has to make sure that they do not have too much supply and in the end it has to come perfectly once the hype has died down.

Apple still cannot relax because it has to get ready for next year in this time employees of the logistic team talked of ways that they could improve on next year to make sure that the system gets better every year even for one of the best logistics networks on the planet there's always room for improvement

 


How to reduce cost through supply chain optimization?

Welcome back Dear Readers, This is Krishnakanth TS pursuing MBA in Marketing and Operations from Amrita School of Business. In this blog I'm taking you through how to reduce cost through supply chain optimization.

we need to follow different steps in order to reduce cost and improve performance

Step 1 Map out the supply chain

Before imitating, we must know what we have

We need to map out our supply chain and the crucial features of mapping are

-Reveal who our suppliers are

-Who is supplying our suppliers?

-Where are they located?

-How goods are being shipped

-Who are our customers?

This helps to identify weakness , risks and opportunities.

Step 2 Review the supply chain network design

Reviewing will hep to avoid duplication and also simplifies the structure. It increases the efficiency and lowers the cost.

- Clarifying the objectives and goals of supply chain

- Creating a team for supply chain review network

- Preparing a model for the supply chain network

- Using advanced analytics to know how the situation to be handled

Step 3 Supply chain modelling

It allows us to consider wider issues

Cost effective product mix, best supply chain network, optimal sourcing and production strategies , best plant and distribution locations will help to reduce overall cost and also to meet the demand

Step 4 Run optimization scenarios

Supply chain networks are complex and include factors like interdependencies, constraints, supply limitations, transportation, single and multiple sourcing strategies. It is difficult to determine the best supply chain network optimization decisions.

This weakness can be overcome by using optimization software for evaluating different supply chain networks.

Step 5 Enhance supply chain visibility

It means everyone in the organization should have better idea what effects the supply chain costs. Consider the enterprise wide software that has sales and marketing access to same supply chain information as the CSO .It helps the executives to make better decisions and allows the employees to track orders from source to cutomers. It also reduces errors and improve customer satisfaction


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Supply chain Benchmarking

 Hello Everyone I am Dharunanand R, pursuing my MBA second year from Amrita School of Business, Coimbatore. In this blog let's explore "Supply chain Benchmarking", what is it why do we do it and how do we do it.




 So what is benchmarking?, A benchmark is an old sort of woodworking term  where you would literally put a mark on the bench and if you know cutting bits of wood you basically could measure every bit of wood you're cutting against that so it all come out the same so it's a benchmark. In terms of business what a benchmark is, A measure of performance so that we can start to track over time how our performance is going and ideally how it compares to others.

A supply chain benchmarking  is any sort of business benchmarking to rate our performance against the performance of others and we're generally doing that to understand the gap in performance and what we need to do to lift our game to improve our performance to be nearer the best.  So it is recognized as probably one of the best management tools out there benchmarking find out what your current performance is tick find out what the performance is like in your industry and are you below that above that tick and then start to identify the gaps in performance and then you can work out how you're going to close that gap and improve that in a nutshell is supply chain benchmarking.

If you want to really use benchmarking effectively you've got to look externally and you've got to try and find some metrics on other businesses in your industry maybe internationally what are the best in class companies doing and that's where you can really stretch and do a lot better.


The Ice Cream Supply Chain

The ice cream supply chain is hot! When they move from the manufacturing plant to the distribution center to the store, and eventually into the shopping cart and home of the customer, ice cream producers must ensure that goods retain their consistency. When the ice cream travels from one place, say, a processing plant, to another, such as a delivery truck, the chance of an unexpected temperature change appears to be greatest. Usually, the manufacture of ice cream begins with a handful of components: water, milk or cream, emulsifiers, stabilizers, and sugar. With this simple recipe, ice cream makers continue to innovate and introduce an ever-expanding number of variations. It also increases the expense and complexity of the functions of ordering, demand planning, forecasting, and stock Manufacturing and distribution often bring complexity to the variety of items.

Transport to deep-freeze storage

The food logistics companies ensure that the ice cream is delivered to one of the various deep-freeze storage facilities in strict adherence to the cold chain, which in turn is responsible for further transport. It is critical that the temperature of the frozen food at all times during transport does not exceed-18 degrees Celsius, as an uninterrupted cold chain guarantees top quality. To ensure that the ice cream still has the correct temperature during transport, trucks are cooled down before boarding.

Storage

The boxes are stored in distribution warehouses for frozen products at temperatures between-21 and -24 degrees Celsius after transport, where ideal conditions for ice cream are preserved at all times. Unique sensors permanently control the ambient temperature.

Transport to consumer

The interfaces in the supply chain , particularly while loading goods, pose particular challenges. Prior to servicing, the refrigerated vehicle is cooled down. A temperature reserve is formed as a result of the fact that the ice cream has already been processed between-21 and -24 degrees Celsius. It is also necessary for the trailers to be loaded into tightly sealed door systems that are largely free of thermal bridges. Professional drivers always keep a keen eye on the temperature during transport. The temperature in the trailer is constantly documented by special temperature sensors.

In a similar way to the deep-freeze factory, the distribution of goods to the retailers is carried out. It is important to unload trucks as quickly as possible so that the ice cream can be immediately stored in the deep-freeze space. Only then is the ice cream packed in the retailers' freezer cabinets and made available to customers.


How Companies are Handling Supply Chain Risks?

 Digital Transformation is Inevitable

All sectors and companies are adjusting their strategies to change with changing customer patterns with small movements and supply interruptions. Brands and sellers are transferring their practises through digitalization. Coronavirus has forced businesses to streamline their online operations, but many businesses have already adapted to it. Live-chat or end-to - end process automation were some of them. New processes are evolving overnight and the focus is shifting to try new technologies to speed up the digital transformation. disruptions.

This is pushing us to ask: Has COVID-19 accelerated digital transformation?

 FMCG item sales are growing rapidly

Due to the demand caused by panicked clients, sales of FMCG products are rising rapidly. During this pandemic, customers want to store vital goods and commodities. The current uncertainty surrounding the pandemic is contributing to an increase in consumer spending on critical commodities. Governments also relaxed the development rules for critical goods in many countries, allowing for quicker clearance with sufficient insurance coverage to sustain business disruptions.

 Will sellers be able to meet this surging demand?

 Definitely! All you need to do is plan your inventory and stock based on your business model and customer needs. The key to sustaining the current situation is to track the data trends over a period.

Key Takeaways for Brands

Track your inventory levels

No matter how hard you try, whether you are selling an important item or a non-essential item, there are high chances that demand will outpace supply. The extent of your inventory levels needs to be identified. This will help you prepare your inventory levels to monitor your outages. If the stock levels are limited, come up with inventive ways to capture demand.

Handle Sponsored ads in a smart way

For high volume search terms, particularly for your brand keywords, Amazon supported ads allow you to rank better. As Amazon ads are doing well during this period, this is the time to raise your ad budget. To satisfy the orders, however, you need to have enough inventory. Also, make sure you track your spending on ads and ensure that the sum remains within your budget.

Make the best use of your sponsored advertising during the time of uncertainty. You need to be smart and careful while running promotions and advertisements during times of huge demand. There are chances that your product may go out of stock.

 How sellers are responding to the pandemic?

We know that, on a large scale, this situation triggers panic among sellers. Though few sellers are concerned about the effects of COVID-19, their supply chain and sales will be crippled. While some think the effect is fleeting and much-hyped. On the other hand, there are few opportunistic sellers who explore and revamp their current portfolio with new product concepts. While the answers are mixed, the solution will be to understand the company's nature and remain connected with your business.

Monday, October 12, 2020

Cheese! Cheese! Cheese! ... So Cheesy ! How do they do it?

Hello everyone, I am Nikitha - A final year MBA student from Amrita School Of Business majoring in Operations and MarketingI am back with my blog and this time I am going to enlighten you with something mouth-watering! Yes, In the next few paragraphs I am going to explain about CHEESE and how is it made. 

Cheese is a fermented food derived from the milk of various mammals. Since humans began to domesticate milk-producing animals around 10,000 B.C. , they have known about the propensity of milk to separate into curds and whey. It is the curds that are used to make cheese, and practically every culture on Earth has developed its own methods, the only major exceptions being China and the ancient Americas.

The first cheeses were "fresh," that is, not fermented, similar to today's cottage cheese aka Paneer. By A.D. 100 cheese makers in various countries knew how to press, ripen, and cure fresh cheeses, thereby creating a product that could be stored for long periods. Each country or region developed different types of cheese that reflected local ingredients and conditions. The number of cheeses thus developed is staggering. France, famous for the quality and variety of its cheeses, is home to about 400 commercially available cheeses.

                                         


The manufacturing Process:



The picture above gives a complete image of how cheese reaches your plate, Cheese manufacturing is a straightforward yet nuanced process. Larger cheesemaking factories have automated production lines, which yield mostly uniform results. In contrast, small batch cheesemakers or even those making cheeses in the comfort of their own homes may find that cheese can vary batch by batch depending on the conditions under which it’s made.

The first step in the manufacturing process is preparing the milk. It takes 10 pounds of milk to make one pound of cheese. Small batch cheesemakers typically use unpasteurized milk, which includes the bacteria needed to produce lactic acid (the agent that makes the cheese curdle). Larger factories use pasteurized milk and then add the bacteria separately.

Once the milk is prepared, rennet is added to it to separate the curds and whey. The curds can be cut using knives and then drained and pressed into molds. After the curds have been prepared, they are ready for aging (though some soft cheeses, like cottage cheese, don’t need to be aged). The length of the aging process varies, depending on the variety of cheese. The cheese might be bathed in brine to stimulate the growth of mold or rind and then stored in a room at the proper temperature and humidity. Some cheeses might be aged for only a month, while others — like extra sharp cheddar — might be set aside to age for up to two years.

Quality Control :

In the factory, quality control is ensured by rigorous inspectors who test the cheese for a variety of factors like texture, body, smell, and taste — and then assign points based on these characteristics.

Cheese manufacturing presents some unique challenges, particularly because of the debate surrounding pasteurized and unpasteurized milk. To ensure the health of consumers, the FDA requires that many cheeses be made from pasteurized milk, but it does allow producers to use unpasteurized milk as long as those cheeses will be aged for more than 60 days. Cheese lovers argue that since pasteurization destroys the natural bacteria needed to manufacture cheese, making cheese with pasteurized milk results in an inferior product. Ultimately, this can make things complicated when it comes to the import and export of cheese, as different countries have different regulations surrounding pasteurization.

Despite the ongoing debate surrounding pasteurization, there seem to be no sign of the cheese supply chain slowing down. Americans can rest assured that they’re very much on track to reach (if not surpass!) the predicted 37 pounds per capita consumption rate by 2025.

 


Supply Chain Dominance of China

Supply Chain Dominance of China A “Made in China” label has always been problematic in the U.S. In the early years of globalization, compani...