Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

How Proper Label Controls Can Help Your Manufacturing Plant

IQMS

And let’s not forget to mention the importance of labels and, more specifically, proper label controls when running a modern manufacturing facility. Benefits of a Manufacturing Label Control Application. Gain both serialized and non-serialized inventory control support.

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Vendor Managed Inventory? Think twice and consider the risks!

Supply Chain View from the Field

Historically, businesses have used one of two extremes for inventory management: push-based or pull-based. Push-based inventory management uses demand forecast to manage inventory and replenish from the supply base. Pull-based inventory management, on the other hand, uses consumption to replenish from the supply base and manage inventory. Inventory levels actually increased at downstream (buyer) facilities.

How to Improve Manufacturing Floor Data Collection

Cerasis

To log, track and trace everything’, your vision of a better manufacturing floor. Here’s how you can improve manufacturing floor data collection, long-term. A key component of any manufacturing process is data collection. Your ability to track stock levels, keeps tabs on shipping dates and monitor costs are essential to any smooth running manufacturing plant. However, are you starting to outgrow your manufacturing floor data collection system ?

Data 191

Nearshoring & Reshoring Will Continue to Increase Thanks to these Main Benefits

Cerasis

Offshoring is basically when a company moves manufacturing to a foreign country in an attempt to save money. For a time, this model of manufacturing seemed to be the paragon of effective business. It was cheaper than producing products in the US, manufacturers could produce large inventories with little capital up front, and consumers did not really have a public voice. Why Are Manufacturers Focusing on Reshoring and Nearshoring?

Tackling Item Complexity

Supply Chain Shaman

Stuck, the company struggled with customer service levels and high inventory write-offs. The process helped World Kitchen manage inventories through bankruptcy filing in 2002. World Kitchen’s supply chain– with significant manufacturing and distribution operations throughout North America and Asia– was complex. In 2002, World Kitchen implemented a disciplined process for managing product complexity. Personalization. Market microsegmentation.

Study Shows Two-Thirds of Companies Yet to Execute Digital Transformation in Supply Chain Planning

ToolsGroup

A North American-based survey of nearly 200 supply chain professionals from top CPG, distribution/wholesale, food and beverage, manufacturing, and retail companies found that 58% of respondents are still in the exploring or evaluating phases of digital transformation. Our customers overcome demand volatility and supply chain complexity for outstanding service levels with reduced inventory. PRESS RELEASE.

Study 131

How the Coronavirus May Affect Your Supply Chain

Transplace

Coronaviruses are part of a strain of viruses that can cause the common cold or other respiratory illnesses, including the SARS outbreak of 2002. manufacturers from continuing production of smart phones, automobiles, appliances and drugs to treat many medical conditions.

VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

Inventory Turns. Better performance in inventory turns than the peer group average for the period studied. In the analysis of the performance factors, companies are divided into two classifications: Supply Chains to Admire Winners: In the analysis of the performance factors of growth, operating margin, inventory turns, and Return on Invested Capital, Supply Chain to Admire winners score at or above the industry peer group average for all four of the factors.

The worst Supply Chain practices must be confessed and not only by constraint

KEPLER Consulting

A failure to control IT consumption in production will hinder the delivery of components along the line, the waste management through the forcing of manufacturing orders and, ultimately, the calculation of the PRI. Thesis, Northwestern University, 2002.

Throwback Thursday

Supply Chain Shaman

As hospitals adopted consignment planning programs, inventory progress slowed. The turns are the lowest of any industry, and despite investments in technologies and processes, inventory turns have only improved 3%, and Cash-T0-Cash (C2C) cycles have declined 4%. The operating margin for the medical device industry is 4X that of the automotive manufacturer and 2x the margin of the hospital. I dusted off a 2002 presentation from P&G to share with the audience.

Post-pandemic Supply Chains

Enterra Insights

”[5] Extended global supply chains are being questioned as is a heavy reliance on Chinese manufacturing. Tan points out, when the SARS, or severe acute respiratory syndrome, epidemic broke out in 2002 and 2003, “China contributed 4% to the world’s GDP. ” Reliance of Chinese manufacturing has many pundits insisting manufacturing needs to be re-shored or near-shored.

Supply Chain Redesign: A Conversation with Lennox International’s Keith Nash

Talking Logistics

Some of the key benefits we’ve realized are lower transportation costs, record service levels and shorter cycle times, and better inventory accuracy. He is primarily responsible for complex supply chain implementations across Retail, Pharmaceutical and Manufacturing verticals. Adam joined Manhattan in 2002 after the acquisition of Logistics.com where he supported their SaaS Transportation solution.

Opinion: A Post-Covid 19 World for Supply Chains: Back to the Future?

6 River Systems

” However, as we saw in China after SARS in 2002, it’s possible that ‘normal’ won’t quite look like what we’re used to. Governments will have to rethink how they act within our interconnected global supply chains: how they allow the flow of goods, how they monitor areas where products are sourced and manufactured and how they regulate cross-border labor. But have we taken too radical a view when it comes to inventory levels?

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. I also believe that SAP is one of the best, if not the best, ERP system for most process manufacturers. When SAP launched APO in 2002, the optimization technologies were inferior to most best-of-breed technologies in the market. I am writing this blog post in the air, sitting in seat 4c, somewhere over the Midwest en route to Philadelphia.

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. I also believe that SAP is one of the best, if not the best, ERP system for most process manufacturers. When SAP launched APO in 2002, the optimization technologies were inferior to most best-of-breed technologies in the market. I am writing this blog post in the air, sitting in seat 4c, somewhere over the Midwest en route to Philadelphia.

Seasoned Leadership in Action™! An Interview with Michael Massetti, VP at Gartner!

Supply Chain Game Changer

The biggest career transformation for me was after leaving Dell when I joined Lucent in 2002 and entered supply chain in technology sourcing. The team reduced finished-goods inventory by 50% and reduced the assembly and test line production variances by 50% in 9 months. Subscribe Here!

Podcast: Dave Anderson on the Evolution and Future of Logistics

Requis

Dave and his partner Dan Dershem started Supply Chain Ventures LLC in 2002 – just after the internet investing bubble burst. The emergence of real time data has made a big impact on sales and operations planning, because it’s harder to make decisions when you’re trying to determine inventory and production levels using 3-month old data, rather than real-time sell through information plus social media product reviews.

Podcast: Dave Anderson on the Evolution and Future of Logistics

Requis

Dave and his partner Dan Dershem started Supply Chain Ventures LLC in 2002 – just after the internet investing bubble burst. The emergence of real time data has made a big impact on sales and operations planning, because it’s harder to make decisions when you’re trying to determine inventory and production levels using 3-month old data, rather than real-time sell through information plus social media product reviews.

50 warehouse automation stats you should know

6 River Systems

Average warehouse capacity utilization among manufacturers is about 68%. percent, the lowest level since at least 2002. According to Logistics Management’s 2018 Warehouse / Distribution Center Survey , “Respondents took a range of actions to lower operating costs, including improving processes, improving warehouse information technology (IT), improving inventory control, and leveraging a 3PL.

Top 25 3PL warehousing companies in 2020 (by revenue)

6 River Systems

Deutsche Post started acquiring shares of the company in 1998 and completed its acquisition of DHL by 2002, expanding the brand ‘DHL’ to its other services. In 2000, Deutsche Bahn — with its core operations in Germany — realized it was losing some of its largest customers to competitors that offered international services, resulting in the acquisition of Schenker-Stinnes in 2002.

Bio-based Products Future is Promising, but Hurdles Exist

Supply Chain View from the Field

As an example, Chemical Manufacturing (NAICS 325) encompasses a variety of chemical manufacturing codes including petrochemicals (3251), but none for biobased chemicals. Manufacturers go through a certification process that has been developed in a partnership with ASTM International to ensure quality control and consistent results. The costs and time for individual firms to garner the life cycle inventory data from global suppliers can be cost prohibitive and time demanding.

Lean Six Sigma

LeanCor

This can be done through reducing waste caused by transportation, inventory, motion, waiting, overproduction and over-processing, as well as minimizing defects in manufactured products. Data is also not as important with Lean, as it focuses on visible problems such as inventory or defects. Higher management needs to support both ideals in order for them to succeed and they are both used in the manufacturing process. 6 Ways Lean Six Sigma Can Benefit Your Business.

Is Warehouse Robotics at the Inflection Point?

Locus Robotics

As detailed in the chart, distribution center wages for warehouse workers were basically flat from 2002 through 2013 before starting to see a rapid increase. By design, smaller stores don’t carry large inventory, driving the entire operation towards a more e-com-like process. A few years ago, you could not have designed and manufactured a collaborative robot and sold it at a price which justified the value proposition. Rick Faulk, CEO Locus Robotics.

How Supply Chain Strategy Misalignment is Killing Kmart USA

Logistics Bureau

The two companies switched positions in 1991, an event which heralded the start of a decade-long decline for Kmart, which ended in bankruptcy in 2002 and led to a subsequent merger with Sears in 2004. While Wal-Mart invested in fleet assets to drive distribution costs down, Kmart persevered with the use of external carriers and did nothing to try and reduce inventory touch-points. Vendor-managed inventory programs.

Is Warehouse Robotics at the Inflection Point?

Locus Robotics

As detailed in the chart, distribution center wages for warehouse workers were basically flat from 2002 through 2013 before starting to see a rapid increase. By design, smaller stores don’t carry large inventory, driving the entire operation towards a more e-com-like process. A few years ago, you could not have designed and manufactured a collaborative robot and sold it at a price which justified the value proposition. Rick Faulk, CEO Locus Robotics.

Is Warehouse Robotics at the Inflection Point?

Locus Robotics

As detailed in the chart, distribution center wages for warehouse workers were basically flat from 2002 through 2013 before starting to see a rapid increase. By design, smaller stores don’t carry large inventory, driving the entire operation towards a more e-com-like process. A few years ago, you could not have designed and manufactured a collaborative robot and sold it at a price which justified the value proposition. Rick Faulk, CEO Locus Robotics.

Getting Ready for 2017: Reflections on Telling Lies

Supply Chain Shaman

In a nutshell, the research states there is a correlation between cost, inventory, and forecast performance. In parallel, I see companies that are very focused on inventory strategies–form and function of inventory, and push/pull decoupling points with clarity of inventory targets–are better able to improve customer service and inventory levels. This was the lie spun by Gartner in 2002. The streets below me today are icy and wet.