Enron East Africa Ltd

13/09/2021

DIGITAL FINANCE: THE DIGITAL FINANCE ECOSYSTEM.

The finance industry is increasingly turning towards simplified, fast, and reliable solutions using Artificial Intelligence (AI), Automation and Data-driven personalisation.

This rapidly evolving digital landscape with its onslaught of new, innovative solutions, means that finance professionals must stay ahead of the opportunities and challenges presented by these technologies and digital disruptors.

There is greater need for our GOVERNMENTS to provideSME'S with the foundational knowledge required to understand the current finance landscape and the increasing digital transformation in the finance ecosystem such as;

1). An overview of the current landscape of digital finance and the new finance skill set.

2). Using a framework to identify opportunities for innovation

3). Adapting to new landscape of banking and financial markets

4). Expansion of financial technology from payments technology into other industries

5). Use of Fintech by finance professionals

6). Implementing digital transformation

7). Building an effective strategy

😎. Understanding the finance professional’s role in a Digital Finance Ecosystem.

We cannot talk about the so-called "BOTTOM UP ECONOMICS" without having to introduce these kinds of subject to the SME'S sector which is the backbone of our economy.

17/01/2021

WHAT'S THE FUTURE OF GREEN BAG ($USD) IN THE GLOBAL ECONOMY AND FINANCIAL MARKETS?

*China decouples from USD/ Dedollarisation final, China launches its Soworeign E-RMB (Gold backed).

*Sudden Chinese decision shakes the corners of the entire world.

*China surprised the world today and decided to cancel the dollar peg in the stock exchange transactions and decided to deal officially and the official link to the Chinese yuan instead of the dollar, and this is a bold and important step in China's economic history.

This means that the *dollar has become non-existent in Chinese trading and the US dollar will fall strongly against the Chinese yuan* and may *affect it in global markets.

And all the global markets were stunned by the decision.

The news was discussed today on the BBC World English afternoon program.

It is an economic war that could lead the world to a devastating war that cannot be neglected if America acts foolishly in the face of this decision !!

*China 2021 will lead the world.* This is China's old dream and what it planned to achieve for decades or more.

China plans a separate digital currency e-RMB, to take on fights with $

https://amp.theguardian.com/world/2020/apr/28/china-starts-major-trial-of-state-run-digital-currency

*e-RMB* , which is set to be the *first digital currency* operated by a major economy.

A *sovereigndigital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.

*Some government employees and public servants* to receive their *salaries in the digital currency from May* .

A *decline in cash usage* is expected to continue amid the growing popularity of digital payment platforms and as *people avoid physical contact during the coronavirus pandemic* .

It may also facilitate *integration into globally traded currency markets* with a reduced risk of politically inspired disruption.

The e-RMB has reportedly been adopted into the monetary systems of several cities

12/11/2020

BILL OF MATERIALS (BOM) COST REDUCTION PROGRAM IS VERY IMPORTANT FOR BOTH CORPORATE AND SME'S AT THIS TIME OF THE COVID-19:

With more and more businesses opting for global procurement, the number of companies involved in the process of manufacturing has increased. In such circumstances, the need to maintain a proper list of materials and components used in the manufacturing procedure has become essential. It is also necessary to reduce the cost involved in the manufacturing process. ENRON EAST AFRICA LIMITED helps you in maintaining the correct records and also offers BOM cost reduction services for both corporate and SME's.

We are an experienced company offering ultimate sourcing solutions to businesses procuring raw materials or finished goods from developing or developed economies. We implement our experience and knowledge into each and every aspect of sourcing procedures and processes. Our professionals offer high end BOM cost reduction services to our esteemed clients across the globe with all the necessary due processes involved.

Efficient Bill of Material Cost Reduction Services:

Our services help in offering significant savings to our clients allowing them to improve their overall sales as well as increase the profit margin.

Our professionals try their level best to cater to the needs of our global clientele offering the best of services at the most competitive rates. We are considered among the most trusted BOM cost reduction service providers. With deep knowledge and insight, we strive to offer true value for your money and ensure complete client loyalty.

Factors Determining BOM Costs:

Handling the Bill of Materials is one of the most critical aspects of product manufacturing.The BOM is the single largest cost element for any product. We help you to realize the factors responsible to reduce the cost factor in the BOM.

-The latest technological evolution has resulted in minimizing the cost incurred during the procurement procedure, resulting in higher profit margin.

-Time is of utmost value as far as BOM cost reduction is concerned. Products launched within the shortest time frame fail to materialize on the cost optimization part.

-The LLC (Low Cost Country) sourcing part should be properly evaluated to ensure low cost in materials used.

-Component suppliers may decrease costs, but may not have passed on the benefits.

- Lack of suitable purchasing trends arising due to acquisitions and mergers often hamper the cost reduction aspect.

26/10/2020

STRATEGIC SOURCING IN THE MIDST OF THE COVID-19 PANDEMIC;

Business leaders have come to realize that the supply chain is the backbone of any business regardless of whichever industry one is involved in. It is also considered as an enabler for your business strategy. Enron East Africa Limited helps organizations leverage their supply chain efforts as a strategic capability of enhancing operational excellence.

Our sourcing and procurement operations entail all activities that are core to delivering value for our client. These days, strategic sourcing requires unique tools and skills to process the living and ever increasing data streams. With the application of more advanced sourcing methods, companies have improved their capability to obtain measurable and thorough vendor performance evaluation that is directly associated with increased cost savings.

As a discipline, strategic sourcing demonstrates the need for evolving in our dynamic global supply-chain environment. The ability to link effective techniques to technology is vital. Having a holistic viewpoint across the enterprise and the sourcing methodologies is crucial to drive down cost and grow vendor/customer relationships.

Strategic sourcing companies deal with an institutional procurement method that persistently improves and reassesses the purchasing activities of an organization. In the services industry, a service solution, sometimes known as a strategic partnership is referred to as strategic sourcing. It is especially customized to meet individual needs of the client. It is often regarded as one supply chain management component in a production environment. Basically, strategic sourcing is the ongoing procurement process that is intended to discover, prioritize, improve, and re-evaluate sourcing activities.

Here is a list of the best practices that we follow to help best-in-class companies achieve considerable cost savings along with other sourcing objectives.

Strategic Sourcing Cycle of Improvement:

Strategic sourcing is a continuous, well-planned procedure of proactive actions, where global sourcing takes a leading role in adding value to the organization after satisfying business requirements. Actively handling your supply chain means teaming up with suppliers and internal stakeholders, critically scrutinizing company spend and managing supplier risks.

Procurement has traditionally depended on reactive sourcing – making a response to requisitions or other business needs as they come up. As procurement is more proactively managed within strategic sourcing companies, reactive sourcing turns out to be tactical. Strategic sourcing includes creating a strategy to anticipate requirements and plan accordingly as those requirements arise.

Benefits of strategic sourcing:

Increased profit

Every dollar the enterprise saves in procurement directly goes into the Profit/Loss bottom line while adding dollars to the profit. Tactical sourcing systematically aims at savings from the whole supply chain, offering a competitive advantage to the company.

Managed supply risks

Strategic sourcing needs every supplier OR vendor as well as every category of spend to be analyzed. All existing supplier is separately assessed for quality risk, availability risk, financial risk, and level of cooperation. Once the risks are known, an action for avoid or mitigating the risk can be taken.

Improved sustainability

Strategic sourcing is a continuous cycle of functions and not a one-time project or initiative. Managers belonging to dedicated category within the team keep an eye on supplier performance and category. With every succeeding cycle, they can go deeper to identify additional opportunities to bring value to the enterprise.

More value out of procurement

Strategic sourcing means you are solely looking to reduce business costs. Every action taken during your strategy ex*****on is analyzed depending on the following criteria:

-Whether it provides more value at the same cost
-Whether it decreases operational expenditures
-Whether it increases operational speed

12/08/2020

GLOBAL FREIGHT FLOWS AFTER COVID-19 PANDEMIC: WHAT'S NEXT FOR GLOBAL LOGISTICS & FREIGHT FORWARDERS?

COVID-19 will likely affect trade more profoundly than any other recent crisis. Leaders with a well-informed perspective on potential trade scenarios can begin their recovery from a position of strength, Planning & Strategy for next year.

As we witness the global health community’s remarkably determined response to COVID-19, we have also observed actors in every area of the economy react to the current challenges with innovation. Global logistics is no exception. The pandemic will very likely hit global trade deeper and for longer than we have seen in other crises of the recent past. The extent of the disruption will vary by commodity, trade lane, and mode of transport, and it will be steered by local differences in the crisis’s severity. The nuanced nature of the crisis yields opportunities for logistics and supply-chain companies: to enter new markets, innovate on new service offerings, and position themselves against competitors. A detailed understanding of the impact of the crisis is vital for companies as they shift from thinking about emergency resolve and resilience to planning for the return.

Using granular trade-flow modeling, companies can understand their market position and risk exposure in the context of how trade lanes and commodities develop in the crisis. This approach should be combined with a projected macroeconomic scenarios to develop and test strategies for crisis response in the future, as well as next steps after the crisis. Thinking through the most likely scenarios and deducing which shifts in operational and commercial strategy are therefore required will put companies ahead of the curve as we go into the “next new normal.”

A DEEPER, MORE PROLONGED IMPACT ON SME'S, TRADE THAN PREVIOUS CRISES:

My recent research with the McKinsey Global Institute estimates that global unconstrained trade and supply-chain demand could drop by as much as 13% to 22% percent in the second and third quarters of 2020. By contrast, the largest quarterly decline in trade volumes during the global financial crisis of 2008 was around 5% percent. The estimates for global trade development are rooted in nine scenarios, developed by McKinsey in partnership with Oxford University's School of Economics, that model the different paths the global economy may follow, 1 based on assumptions around the efficacy of both public-health and economic-policy responses as well as how businesses and households react to these initiatives. Detailed supply-chain and-demand modeling by commodity indicates that the effect on global trade will be substantially larger than on global GDP (which, for comparison, is estimated to decline by 3% to 8% percent in 2020) and considerably for the longer term. In the scenarios modeled, trade volumes will take 15 to 48 months to recover to fourth-quarter 2021 levels, and the value lost will be equivalent to 8% to 49% percent of total 2019 trade volume. Trade and logistics companies are already feeling the consequences, with several Road, Air, and Ocean-Freight transport companies reporting large dips/OR losses in volumes versus the same period last year.

23/07/2020

HOW DO WE ENSURE OUR ECONOMIC RECOVERY STAYS “GREEN” AND INCLUSIVE IN THE MIDST OF THE COVID-19 PANDEMIC;

As countries around the world continue to battle the spread of Covid-19, economic forecasts remain grim. The World Bank estimates a 5.2% contraction in our global GDP for 2020.

As we contemplate our way out of this crisis we are faced with two choices: A return to our economic model that has come at the cost of our planet’s regenerative capacity and will undoubtedly put us, again, on the path towards a future crisis; or re-imagining a sustainable economic model that prioritizes the health and well-being of people and the planet.

Each of these options can be built into the economic stimulus packages and can make or break the world’s net-zero pathway post-pandemic.

The need for a green recovery:

A briefing paper recently released by Climate Action Tracker, for instance, warns that if governments fail to implement low-carbon measures or roll back existing climate policies, emissions could rebound and even overshoot pre-COVID projected levels by 2030.

Earlier this year, a WWF study projected that the loss of nature would cost the world at least $479 billion annually by 2050, demonstrating the intrinsic link between economy and environment. Emerging infectious diseases similar to COVID-19, particularly, are linked to deforestation and habitat-loss pushing wildlife into closer contact with human settlements.

The role of the private sector;

The private sector presents a largely untapped opportunity for the implementation of nature-based solutions that benefits business, society, and the planet.

However, CDP’s recent policy brief indicates that only 15% of the 543 responding companies are undertaking nature-based solutions within their operations, such as forest conservation and reforestation, with Asian companies (25%) leading the trend.

The economic case for a green recovery from the present crisis is as clear as ever and now overwhelmingly supported by business leaders around the world. Last month, 155 companies — with a combined market capitalization of over US$ 2.4 trillion and representing over 5 million employees — came together to call on governments to align their policies and recovery efforts with science-based targets.

Raising policy ambition for better economic recovery:

With the capital markets poised to finance such a shift, a few countries are emerging as the front-runners in ensuring the accountability of public spending and its alignment with existing climate actions.

Canada, for instance, has announced a series of economic response measures requiring companies to disclose on climate-related issues in order to avail of the government support, while the European Commission has pledged that its €750bn recovery plan will stay committed to EU’s climate goals.

This vision is also shared by developed economies in the Asia Pacific (APAC) region: New Zealand and South Korea. Both are lauded for their effective handling of the COVID-19 pandemic and are putting forth comprehensive national plans that jointly address job creation and green recovery.

Notably, it is not the first time that South Korea is turning a large-scale economic crisis into a catalyst for inclusive development. The country spearheaded a national strategy for “green growth” back in 2009 in the wake of the 2007-08 financial crisis.

Although the heavy reliance on coal-powered energy in Southeast Asia remains a challenge for the region’s emerging economies to respond to the wider call for a low-carbon transition, there have been regulatory developments paving the way for increased sustainable finance initiatives.

This includes the proposed plan of Malaysia’s central bank Bank Negara Malaysia (BNM) on an EU-style green taxonomy for banks and insurers in identifying and classifying climate-related risks and opportunities. Most recently, the Indonesian government is reportedly working with a local organization to roll out an ambitious USD$1b economic recovery plan by installing thousands of rooftop solar panels. The plan is expected to create new green jobs, help save public costs in electricity subsidies, and address the energy needs of the country’s poorest households.

A wake-up call for renewed, inclusive environmental action:

Whether or not these affirmative initiatives remain top of the region’s recovery plans hinges upon the renewed commitment from our world leaders.

This present health crisis and its economic impacts is a wake-up call, and in response, governments must use this critical moment to invest in a more resilient and sustainable future.

Mandating and increasing the standards for ESG data transparency in governments would be the first steps in steering our economies in the direction that our world desperately needs.

14/03/2020

Enron East Africa Limited's Statement On CORONA Virus.

Dear Valued Clients and Business Partners,

The health and welfare of our global associates, clients and communities is at the forefront of our minds and actions as we address the issue of COVID-19 outbreak.
To help ensure everyone’s safety, we have effectively transitioned all our associates to work remotely and have temporarily closed our Namanga and Busia offices. We have also limited domestic travel and suspended all international travel.

Our leadership team continues to give thoughtful consideration to potential impacts to our business and yours and ways to ensure business continuity in the coming weeks.
• We remain fully staffed and are leveraging on digital collaboration tools and technology for our services.
• We continue to support client projects and managed services to ensure we keep our service level of commitments
• As always, we maintain multiple logistics service provider to ensure the security of your shipments from point of source, to the final destinations
• And our global associates are highly trained and are ready to give you with the support you require to ensure our timely delivery of your shipments through various international freight hubs and base ports.
As we continue to proactively monitor this situation, we are also giving thoughtful consideration about how we can help you overcome new or escalated challenges related to COVID-19. We will continue to keep you upraised as the situation unfolds.
In times of crisis, the importance of our supply chains, information technology and global commerce becomes amplified. We are acutely aware that our clients run the supply-chains and e-commerce operations critical to the health and well-being of our global and local population and economy.
We are committed to supporting you, communicating with you, and remaining your trusted logistics partner and advisor as we navigate through this unprecedented chapter together in our lifetime.

Our hearts and thoughts are with you and your families and our entire Enron East Africa Limited family during this difficult time.
Be Well and Stay Safe,
Amos Ng'ongo, CEO & Managing Director
www.enronea.com

Enron East Africa Limited as freight/forwarding and logistics company is where the SME’s and leading corporates and individual customers come to when they want true and honest results.

13/01/2020

POSSIBLE ECONOMIC-SLOW-DOWN/WEAKEN-JOB GROWTH;

MARKET 101 DATA RELEASE 13/01/2020

Time (GMT) Currency Event Forecast Previous
09:30 GBP Business Investment (YoY) (Q4) -1.3% 0.5%
09:30 GBP Business Investment (QoQ) (Q4) -0.5% -0.4%
09:30 GBP GDP (MoM) 0.0%
09:30 GBP GDP (YoY) 1.1%
09:30 GBP Industrial Production (MoM) (Nov) -0.1% 0.1%
09:30 GBP Industrial Production (YoY) (Nov) -1.4% -1.3%
09:30 GBP Manufacturing Production (MoM) (Nov) -0.3% 0.2%
09:30 GBP Manufacturing Production (YoY) (Nov) -1.7% -1.2%
09:30 GBP Trade Balance (Nov) -11.70B -14.49B
15:30 CAD BoC Business Outlook Survey
21:00 NZD NZIER Business Confidence (Q4) -40%

• Asian equity markets began the week somewhat mixed with the region indecisive ahead of the US-China Phase 1 deal signing

• US Treasury Secretary Mnuchin stated that China’s commitments in Phase 1 deal were not changed during the lengthy translation process

• BoE’s Vlieghe becomes the latest MPC member to come out in support of a potential rate cut if data does not improve

• Iran admitted that it accidentally shot down the Ukraine passenger jet in which it alleged that the airliner took the flying posture and altitude of an enemy target

• Looking ahead, highlights include UK Monthly GDP, Industrial, Construction & Manufacturing output, Fed’s Bostic & Rosengren

GEOPOLITICS

Iran admitted that it accidentally shot down the Ukraine passenger jet in which it alleged that the airliner took the flying posture and altitude of an enemy target, while protesters held a rally in Tehran demanding the Supreme Leader quits due to the mistake. (Newswires)

US President Trump tweeted that the National Security Adviser suggested sanctions and protests have Iran “choked off” and will force them to negotiate, although President Trump added that he couldn’t care less if they negotiate and it will be totally up to them but suggested no nuclear weapons and “don’t kill your protesters”. In addition, National Security Adviser O'Brien said President Trump is still poised to reduce troops in Afghanistan even if they cannot reach a deal with the Taliban this year. (Twitter/Axios)

White House National Security Adviser O'Brien said the Trump administration has reached out to North Korea to ask them to resume diplomacy, while there were separate reports over the weekend from North Korea state media that the country will not trade its nuclear weapons for lifting sanctions. (Axios/KCNA)

Libya's GNA PM Al-Sarraj said they will sign a ceasefire with Haftar's LNA out of a position of strength and that Libya will continue on path to democracy with the leaders set to meet in Moscow today for a possible signing, while other reports over the weekend noted the sides had agreed to a ceasefire but then blamed each other on breaking the ceasefire hours after. (Newswires)

4 Iraqi soldiers were reportedly wounded following a rocket attack on a base in Iraq. (Newswires)

ASIA-PAC

Asian equity markets began the week somewhat mixed with the region indecisive and Japanese participants away for a national holiday, with this week’s US-China Phase 1 deal signing adding to the tentativeness. ASX 200 (-0.4%) suffered from broad losses across its sectors led by underperformance in energy and defensives, while Westpac recently estimated losses from the ongoing bushfires at AUD 5bln and a total impact to domestic GDP of between 0.2%-0.5%. The TAIEX (+0.7%) was lifted following a landslide victory by Taiwanese President Tsai and with several encouraging monthly revenue updates including Acer, Pegatron and TSMC. Shanghai Comp. (+0.2%) and Hang Seng (+0.9%) were varied with early underperformance in the mainland after the PBoC once again refrained from open market operations and as the looming Phase 1 signing kept participants on the fence. Furthermore, the sides were said to have agreed to launch a new semi-annual dialogue mechanism, although not also was rosy with the US to drop its civilian drone programme amid security concerns regarding Chinese tech and with officials to visit the UK in which they are expected to pressure the UK against the use of Huawei equipment.

PBoC skipped open market operations for a daily net neutral position. (Newswires)

PBoC set USD/CNY mid-point at 6.9263 vs. Exp. 6.9249 (Prev. 6.9351)

US Treasury Secretary Mnuchin stated that China’s commitments in Phase 1 deal were not changed during the lengthy translation process and reiterated that it will be released following the signing this week, while other reports noted that US and China agreed to launch a new semi-annual dialogue mechanism that is set to be announced on Wednesday. (Newswires/WSJ)

US business executives suggested the Phase 1 deal is ‘modest but helpful’ and the broad outline of the agreement includes some advances in intellectual property protection, significant agriculture purchases and reduced export barriers. (SCMP)

US officials are to visit the UK where they are expected to pressure the country not to use Huawei equipment. In addition, there were separate comments from a former MI5 chief that Huawei technology doesn’t pose a threat to UK and it was also reported the US is to scrap its civilian drone programme amid security concerns regarding Chinese tech. (Newswires)

UK/EU

BoE’s Vlieghe said he is prepared to lower rates if the data doesn’t get better. Furthermore, Vlieghe thinks it has been a close call and wouldn’t take much to swing it one way or the other, while he suggested the upcoming few meetings are live. (FT) Note, this comment follows recent dovishly perceived rhetoric from MPC members Carney and Tenreyro last week; neither of which were two of the dissenters at the December meeting. The next meeting and MPR is on January 30th.

CBI/PwC survey showed sentiment among UK financial firms improved in Q4 for the first time in 4 years. (Newswires)

FX

In FX markets, the DXY was relatively stable below the 97.50 level following the slight pullback in the aftermath of the weaker than expected NFP jobs data and wage growth, while its major counterparts were mixed in which EUR/USD prodded Friday’s highs although advances were limited with the pair sandwiched by nearly EUR 1.6bln of option expiries set to roll off later today at 1.1120-30 and GBP/USD broke below near-term support at 1.3050 after BoE’s Vlieghe suggested he is prepared to lower rates if the data doesn’t get better and that approaching meetings are live. Elsewhere, USD/JPY and JPY-crosses were higher despite the absence of Japanese participants and antipodeans benefitted from a stronger CNH heading into the Phase 1 signing coupled with the strongest PBoC reference rate since early August which saw USD/CNH breach 6.9000. This spurred flows into several EM currencies and TWD was also a notable gainer in which it rose to its best level since June 2018 after the election victory by President Tsai who received record-breaking support.

COMMODITIES

Commodities were mixed with WTI crude futures heading into the European morning relatively unchanged after early selling pressure on an early break below the USDD 59.00/bbl level was eventually met with dip-buying amid supply side factors including a reduction in the latest Baker Hughes rig count as well as lingering geopolitical uncertainty regarding both Iran and Libya. Elsewhere, gold began the week quiet amid an uneventful greenback in which the precious metal trickled back towards the USD 1550/oz level, while copper edged mild gains but was confined to within Friday’s post-NFP range.

Baker Hughes Rig Count (Jan 10th) Oil -11 at 659, Natgas -4 at 119, total at 781. (Newswires)

Kinder Morgan natural gas pipeline declared a force majeure after it found a leak on the Louisiana #1 pipeline in segment 25, Jefferson County, Texas. (Newswires)

US

The curve bull-flattened on Friday, with yields in the front of the curve on slightly lower, while 30s had fallen by almost 5bps. The employment situation report was mildly disappointing, with the headline missing expectations, and the pace of wage growth easing to under 3.0% Y/Y, bringing buying interest. A Raymond James strategist said that for the bond market, this was a positive number, especially when it comes to wage inflation; "the subtle drop in the number of hours worked," he said, "and the lower-than-expected average hourly earnings number is good for fixed income. While today's data may not result in a big move down in rates, it certainly doesn’t support a big move higher either”. US T-note futures (H20) settled 6 ticks higher at 129-02+.

Fed’s Kashkari (voter, dove) said the December jobs report suggests that the economy is slowing and that he would support a rate cut if jobs growth continues to weaken, inflation stays low and inflation expectations slip. Furthermore, Kashkari added that he sees rates on hold for the foreseeable future and sees the next move as a cut rather than a hike.

19/12/2019

HOW TO CREATE A SUPPLY CHAIN STRATEGIC PLAN THAT WILL WORK FOR (Nearly) ANY SME A HEAD OF 2020 GLOBAL ECONOMIC RECESSION;

The year 2020 is about to start with new set of goals and challenges; it can be hard to know where you should first focus your efforts and what your supply chain strategic plan for coming year should be. After all, by now you’ve probably read so much about supply chain strategic plans that you’re left feeling overwhelmed and not sure of what needs to be done.

When you feel like this, it’s important to take a step back and create your plan. In this post, we’re going to take a look at how you can create a supply chain strategic plan for nearly any type of business, regardless of size, nature and industry.

We’ll examine how you can build a rock-solid supply chain strategic plan for the next year, from the ground up, what would be key elements of consideration and how you can adapt your plan, if changes need to be made.

UNDERSTAND YOUR SUPPLY CHAIN GOALS, STRATEGY, TACTICS AND OBJECTIVES:

When you’re creating an online marketing plan, it’s important that you understand the difference between goals, strategy and tactics. When you do, you’ll be better able to adapt your approach, when conducting a supply chain strategic plan.

On top of that, you’ll also be able to better judge how you can implement things that you learn from various articles that you may read in the future.

So, what’s the difference between goals, strategy and tactics?

1). A Goal is the over-arching result that you’re looking to achieve. It’s often what you focus on first, So a goal of yours might be to drive 95% On-Time Delivery performance, by doing daily root cause analysis for highest Pareto issues and committing to improvement actions.

2). Strategy is a set of decisions you want to make in a certain direction and is high-level thinking related to how you might achieve that goal. So, the strategy might be to get people through APICS or CIPS training to develop supply chain competencies to give your business a competitive advantage.

3). Tactics are the specific set of actions that you take in order to achieve the strategy. So, tactics might include to start an inventory ABC analysis for inventory optimization or strategic pricing in 2020.

A lot of the supply chain content that you’ve probably read by now focuses on tactics, rather than goals and strategy or linkage of 3.

For example, a blog post, telling you how you’re going to get more through-puts out of your warehouse, doesn’t always include strategy, in terms of how it is linked to your overall business strategy and goals.

As a result, after reading such an article, you probably tried to apply the tactics mentioned in the blog to either Slot Most Ordered Products in Picking Areas or Narrow the Aisles or Take Advantage of Overhead Space but you didn’t see how increasing throughput would contribute to the larger picture of supply chain strategic plan.

When creating supply chain strategic plans, based on content that you have read, it’s important that you know how to link supply chain tactics with supply chain strategy and goals. (i.e) People, Processes, System and Ex*****on.