Welcome to CAVU Supply Chain Strategies
Is your supply chain optimized for clear, efficient, and resilient operations?
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Is your supply chain optimized for clear, efficient, and resilient operations?
Similar to how clouds can obscure a pilots view of the horizon, supply chain challenges and disruptions can prevent your business from reaching its optimal supply chain state. To establish, achieve, and maintain this optimal state, a clear vision and well-defined plan is required. What's more, it can be challenging to find the time and resources needed to create the vision and execute the plan. Even if you already have supply chain experts on staff, they may not have the bandwidth to support the project due to their current workload.
In aviation, CAVU, or Ceiling and Visibility Unlimited, signifies clear skies and unlimited visibility, essential for safe and efficient flying. In the business world, companies need CAVU-like conditions across their unique supply chain ecosystems to maintain a competitive edge.
Fueled by a dedication to help businesses that may not have the time, resources, or budget to achieve the optimal balance between exceptional service, operational efficiency, and cost-effectiveness, we developed The CAVU Way.
With two decades of experience and extensive industry expertise, we are dedicated to providing an objective and actionable approach to help all supply chain stakeholders achieve a CAVU View, empowering them to define and reach their optimal supply chain state.
Building upon our inspiration from aviation, we embrace a concept pilots often refer to as the "1-2-3 Rule", focusing on the destination - or in our case, the outcome. We start by defining your optimal supply chain state and work backward to help you achieve it.
Peter Drucker
If you have any questions, please get in touch, give us a call, or send us an email.
You can Begin Your 1-2-3 Journey as well.
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Whether your shipping a package or a truckload of pallets, it's essential to recognize that the dynamics of freight demand (shipments) and transportation supply (capacity) operate in line with the principles of supply and demand. This interaction gives rise to two primary states: 'tight' and 'loose' markets. In 'tight markets', carriers hold an advantage due to high shipment volumes coupled with limited capacity, whereas 'loose markets' present the opposite scenario. Historically, 'loose markets' are favored by shippers for their association with lower transportation costs, although they also come with a distinct set of challenges. The transportation market cycles between these "tight" and "loose" markets, influenced by various factors, and grasping these cyclical patterns is crucial for striking the right balance between delivering exceptional service and maintaining cost-effectiveness.
A frequently overlooked aspect is the transportation costs incurred by your supplier to deliver orders to your facilities. In "tight markets," suppliers may face increasing costs that could be passed on to you, impacting your bottom line. Proactive communication and collaboration with suppliers becomes crucial in such scenarios. Maintaining an open dialogue about cost management strategies, potential cost increases, and the option for you to assume control of transportation can aid in minimizing the effects of transportation market fluctuations on your overall business performance.
How CAVU Can Help: We can assist by evaluating your current transportation procurement processes and providing recommendations on alternative approaches to the market based on historical shipment data.
Here are the strategies that align with this topic:
Supply Chain Segment: Sourcing
Recommended Strategies:
Supply Chain Segment: Delivery & Returns
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Dealing with carriers running behind schedule is a common challenge in logistics, often beyond anyone's immediate control. Focus on what you can control and get to the root cause of the delays by taking the following actions:
By adopting a strategy that encompasses these areas, you can ultimately enhance the customer experience. This approach not only keeps your customers satisfied but also turns them into brand ambassadors eager to share their positive experiences with others. This, in turn, retains your existing customer base while helping attract new customers through word-of-mouth recommendations.
How CAVU Can Help: We can help you evaluate both the service levels and the visibility and notification technology provided by your current transportation providers, which is often underutilized. One common challenge when using different technology platforms from various transportation providers is the difficulty of aggregating information for easy access and viewability by you and your customers. To overcome this challenge, we can help you explore alternative visibility and notification solutions available in the market, selecting one that aligns with your specific needs. This ensures a more streamlined and cohesive approach while enhancing your customers' experience.
Here are the strategies that align with this topic:
Supply Chain Segment: Delivery and Returns
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Service Level Agreements (SLAs) should be well-documented and reviewed regularly. If suppliers are not holding up to the agreement, be sure to hold them accountable. Best practices involve creating mutually agreed-upon Key Performance Indicators (KPIs) that focus on areas designed to improve your overall experience and help you reach your objectives. Keep in mind that while SLAs are designed to get the supplier to the table, KPIs should be collaboratively created and managed keep them there.
How CAVU Can Help: We can assist you in evaluating your supplier relationships by customizing our approach based on your supplier segmentation strategy. We'll prioritize suppliers with higher replaceability (not single-source suppliers) and greater spend to maximize the potential for positive outcomes and significant improvements.
We guide you to consider the following:
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Remaining competitive and compliant demands a proactive approach to adapting to continually shifting market trends and regulatory requirements. Proactive adjustments are essential for long-term success. It's crucial to have a plan in place to anticipate changes in market trends and regulatory landscapes, ensuring that your business stays not only compliant but also one step ahead of the competition.
How CAVU Can Help: We can help by building or enhancing continuous education initiatives for all members of your supply chain team. These tailored training programs are designed to keep you and your team well-informed about the latest supply chain trends and government regulations, ensuring that you remain at the forefront of the industry.
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Adopting eco-friendly practices goes beyond being a choice; it's a fundamental element of modern supply chain management. The good news is that embracing sustainability initiatives can lead to significant cost reductions through improved resource efficiency and waste reduction, ultimately improving your bottom line.
Did you know that you can partner with sustainability companies that will provide you with an action plan to help offset your carbon footprint? Veritree is one of these companies. They plants trees on your behalf to help offset what you cannot mitigate.
How CAVU Can Help: We can assist in creating a Sustainability / ESG Plan and connect you with top sustainability experts to help you achieve your goals.
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Carriers missing their dock appointments without notification disrupts your entire operation, leading to unexpected downtime and increased costs. What's worse is, once the immediate issue of a missed dock appointment is resolved, work resumes without a root cause analysis to attempt to prevent future occurrences.
How CAVU Can Help: Missed pickups or deliveries can be linked to carrier performance, whether they are arranged by you or one of your suppliers. After understanding your specific situation, we can assist in evaluating and enhancing the relationships with your suppliers and/or transportation providers. We can also help build or enhance processes to promote root cause analysis and continuous improvement.
Here are the strategies that align with this topic:
Supply Chain Segment: Sourcing
Recommended Strategies:
Supply Chain Segment: Delivery & Returns
Recommended Strategy:
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Recognizing the possibility that a carrier or broker serving you or your suppliers could close their operations without notice is a crucial step in minimizing the risk of supply chain disruption. The next crucial step is ensuring you are partnering with the right carriers and brokers across your entire supply chain ecosystem.
How CAVU Can Help: We can systematically assess and evaluate the transportation providers within your unique supply chain ecosystem. Using a collaborative approach, we'll establish a risk analysis methodology to regularly evaluate your provider network.
Here are the strategies that align with this topic:
Supply Chain Segment: Sourcing
Recommended Strategies:
Supply Chain Segment: Delivery & Returns
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Whether you're handling returns because of damage or aiming to elevate your customers' journey, having a well-defined, repeatable process in place with measurable outcomes is the key to success. This not only streamlines the return experience but also provides valuable insights into product quality, customer preferences, and areas for improvement. It's about turning a potential challenge into a chance to strengthen your brand, enhance customer loyalty, and continuously refine your operations.
How CAVU Can Help: We can assist by reviewing your current reverse logistics processes and suggesting improvements that align with your unique supply chain and objectives. Utilizing industry best practices and our extensive experience, we can guide you from your current state to your envisioned future state.
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It's vital to stay informed about the latest supply chain technology trends that can support your business goals. Establishing a systematic approach to gather information about emerging trends, like digital transformation and Artificial Intelligence (AI), is crucial. What's even more critical is embracing and adopting the technology that will deliver the greatest value to your business while enriching your customers' experience.
How CAVU Can Help: We can assist by recommending technology service providers to meet your specific needs. For substantial requirements, we can aid in crafting a Request for Proposal (RFP) tailored to your unique needs and suggest suitable technology companies to invite. We can facilitate the RFP process with an objective approach, focusing on helping you achieve your goals.
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At CAVU, our mission is to simplify supply chain management. We guide business leaders and their teams toward success utilizing technology-forward strategies, ultimately reshaping the logistics landscape for the better.
Our vision is to foster knowledge and idea sharing while empowering business leaders and their teams to continuously level up their supply chain expertise.
CAVU assists companies in crafting a customized roadmap to achieve their optimal supply chain.
Recognizing that 'optimal' varies for each supply chain stakeholder, we begin with a comprehensive assessment to gather essential information about your unique supply chain and objectives, ultimately defining what 'optimal' means to you.
Next, we align strategies with key supply chain segments, such as sourcing, manufacturing, and delivery & returns. This forms a tailored roadmap with recommended timelines for your journey to an optimal supply chain.
While certain strategies are supported in-house, we differentiate ourselves and take great pride in being able to orchestrate an objective analysis of the entire marketplace to bring the absolute best solution providers to the table, when needed.
The keys to unlocking your optimal supply chain are in your hands, and we're here to guide you in using them.
Tony O'Neal brings 20 years of experience in supply chain management with a strong emphasis on technology-driven solutions. He has developed a deep understanding of supply chains through his career, building a vast network in the industry and received recognition for his contributions.
He established CAVU and introduced "The CAVU Way" to fill a market void, offering impartial supply chain management services tailored to the specific requirements of small to medium-sized businesses. This distinguishes CAVU from large consulting firms that provide a broad spectrum of services and companies that prioritize their own products and services possibly to serve their own interests.
In this segment, we focus on analyzing the intricate balance between material and transportation costs, ensuring optimal cost and service trade-offs based on supplier, commodity, and location. We also review supplier relationships and performance, using Key Performance Indicators (KPIs) to identify improvement opportunities to enhance the partnerships across your supply chain.
Our focus shifts to the core of production, where we provide insight into process efficiency and cost reduction strategies. We explore potential areas for improvement, including technology integration and lean management practices, all designed to enhance your manufacturing operations while maximizing value.
As shipments move outbound, we streamline the flow of physical products and associated information. With our customized Transportation Request for Proposal (RFP) service, we simplify partner selection. By collaborating with carriers and brokers matching your requirements, we secure dependable and cost-effective transportation solutions.
We're excited to learn about you and your business and explore how CAVU can help you see further, enabling you to go farther, faster!
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CAVU Supply Chain Strategies
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