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A Brief History of WMS in the Supply Chain

GlobalTranz

As the world moved forward, the basic concept of managing warehouse inventory did not change much. The 1900s to Late 1930s: World War I Witnesses the Introduction of Hand Trucks for Moving Materials and Managing Inventory. The 1980s to 1990s: AS/RS Becomes Obsolete, Replaced by a Shift to Managing Inventory in Smaller Batches.

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Measuring Up?

Supply Chain Shaman

To help, in this post, we provide you with some insights for the period of 2006-2015. In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. The analysis is for two time periods: 2006-2015 and 2009-2015. Inventory Turns. A Look at History. Resiliency.

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A New Red Wagon?

Supply Chain Shaman

As shown in Figure 1, the company has been unable to maintain balance on the portfolio of cost and inventory. Note that recent inventory progress is slipping against the improvements during the recession). Orbit Chart of Dow Chemical and BASF for the Period of 2006-2016 and Performance Data for the Chemical Industry.

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Imagine the Supply Chain of the Future

Supply Chain Insights

Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. It is needed.

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Mining Supply Chain Data for Insights

Supply Chain Shaman

They all sound alike and each company makes similar claims of how the implementation of supply chain planning improves costs, lowers inventory and improves the return on assets. Note that there is an inverse relationship between inventory turns and inventory targets. So, you might be saying, “ WOAH!”

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Throwing Down the Gauntlet

Supply Chain Shaman

In Figure 1, I share a composite orbit chart of progress of Cisco Systems, Intel, Samsung and Flextronics on the Effective Frontier at the intersection of inventory turns and operating margin for 2006-2012. I think three things: 1) A Hard-Fought and Tough Journey. What can we learn? This is a group of leaders.

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Household Products Industry Stuck in Neutral and Going Backwards

Supply Chain Shaman

Both Kimberly-Clark and P&G are going backwards on operating margin while making progress on inventory turns. Orbit Chart for Kimberly-Clark and P&G for the Period of 2006-2015. Orbit Chart of Colgate for the Period of 2006-2015. As the company spiraled in the updraft of the market, it built inventory.