Modern Warehousing: The transformation of the black box

In this battle for efficiency and profitability, the warehouse has taken centre stage. Companies are recognizing that what happens in the warehouse can make a big difference to the supply chain and to their bottom line. They are also starting to acknowledge that some of the biggest productivity gains are potentially within the walls of [...]

Vendor Managed Inventory (VMI) for SMEs in emerging markets

Where information and visibility is lacking, inventory often takes the place,  all at a cost. Emerging market operations are a case and point. Even though Vendor Managed Inventory (VMI), also known as a continuous replenishment process, has been around since the 1980s, popularized by Wal-Mart and Proctor & Gamble, it has yet to take off [...]

Cost cutting: Focus on long term goals

Published: 1st of December 2008 With liquidity tightening, companies are increasingly looking for ways to cut spending. In a recent survey of Fortune 1,000 companies, 80% of respondents said that they look at supply chain departments for their cost cutting initiatives.  However, cost cutting in supply chains requires the right mindset. As with any crisis, [...]

15 warehousing trends

Speed – move goods at great velocity along the chain Cross-docking – best-in-class warehouses cross-dock an estimated 50 percent of incoming goods Greener – green technology such as natural light and renewable energy Size – smaller and narrower, making better use of allocated space Additional services and functions – customer services such as customization and [...]

Warehouse technology trends

Information hub – technology is improving visibility in the supply chain and allowing greater opportunity for collaboration   Speed – warehouses need to handle vast amounts of data Accuracy – companies are demanding increased accuracy Warehouse Management Systems (WMS) – WMS provides companies with increased functionality and visibility in the supply chain Internet age – small [...]

10 inventory forecasting issues

Forecasting process – what is the current forecasting process and who is involved in setting targets? Information technology – identify the current IT system(s) employed by the company and are regular upgrades and improvements taking place? Collaboration – does collaboration take place between the various internal and external partners? Items overstocked and out of stock [...]

Retail supply chain – execution and stock outs

Retailers often overlook the “boring” supply chain functions. Recent research once again highlights the importance of these functions. Poor execution and stock out – what happens in the last 10 yards of retail supply chains is really important. Customers often experience stock outs not because the supply-chain plans are poor, as we often assume, but [...]

10 ways to reduce inventory cost

Determine cycle stock.  Understand average inventory and reduce safety stock. Reduce overall lead time and lead time variability. Understand total cost. Evaluate holding cost and have a clear understanding of real potential savings with bulk purchases. Improved warehouse layout. Optimize warehouse layout and evaluate the potential of using narrow aisle handling equipment. Rationalize SKUs. Eliminate [...]