CGN Edge Blog

A Unique Approach to Optimizing Rental Supply Chain: A Network Study

In current economic times, where economic cycles are shorter and volatile, companies within all industries are looking for every competitive edge. Financially, companies are looking into all aspects of the business to improve their bottom-line.  Costs of renting or leasing equipment outweighs the benefit-to-expense ratio of buying and owning equipment. Business trends show an increase in equipment rental, as part of their business strategy, allowing them to conserve capital.

A Perplexed CPG World

 

Consumer product companies cover a vast array of product categories and come in numerous shapes and sizes. Consumer packaged goods (CPG) are items used daily by the average consumer and need to be replaced frequently. Basic examples include: food, beverages, clothing, tobacco, and household products. Additionally, cosmetics and frozen dinners can be categorized under CPG.

Challenges of Just-In-Time (JIT) Procurement

Manufacturers utilizing JIT production are continuously trying to mitigate the volatility of product availability and price within their current supply base. Unfortunately, most JIT facility layouts are designed for limited spatial flexibility to secure those line-side critical parts. The manufacturer, then, is oftentimes left with optimizing capability at the supplier side to maintain on time delivery and production. As an alternative to working through the existing relationship, the manufacturer also looks for additional sourcing opportunities to compete with the highly demanding production schedule and product prices.