Lean Defined: What is Waste? (In Logistics)

LeanCor

Taiichi Ohno , author of Toyota Production System , devised seven manufacturing wastes: Overproduction, Inventory, Overprocessing, Correction, Waiting, Conveyance, and Motion. Transportation : Transportation in excess of what is required if inventory and flow exist in the network. Inventory : Waste created by carrying inventory in excess of what is required to service the customer. Image via Wikipedia. Lean Defined: What is Waste? (In In Logistics).

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Still Don’t Know How Many Slaves Are In Your Supply Chain?

Talking Logistics

Compliance with a similar law passed in California back in 2010 is equally poor. According to a recent report by the non-profit group Development International, only 14% of Californian companies fully comply with the California Transparency in Supply Chains Act of 2010 (TISCA). How many slaves are in your supply chain?

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How to Calculate Inventory Turnover

Unleashed

Inventory management is a critical function of any business, with drastic implications on profit margins. Inventory turnover is a key formula that’s often discussed in the context of inventory management efficiency, and crops up in most types of inventory report.

Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. When we look at public companies at the intersection of operating margin and inventory turns or growth and Return on Invested Capital.

Financial Benchmarking for Inventory Turns and Working Capital

Arkieva

Using so called orbit charts, we have benchmarked companies on EBIT% versus Inventory Turns. That benchmark helped to reveal the ‘best practice frontier’, which in turn helped in setting aggressive but aligned targets for EBIT% versus Inventory Turns. As recaptured in Figure 1, the inventory turns are a measure on the ‘cash’ side of the triangle. Figure 1 – Aligning EBIT% and Inventory Turns to align the Supply Chain Triangle.

Using Digital Supply Chain Planning to Respond to Market-Changing Disruptions like COVID-19

ToolsGroup

Gartner research shows that companies that continued to increase earnings while others declined in 2009 and 2010 were those that were able to keep their foot on the gas through the downturn because they had planned responses in advance. Usually disruptive events require redefinition and reconfiguring of the supply chain network in order to identify correct allocation of flows and inventory.

Healthcare: A Call For Action

Supply Chain Shaman

The first value is the average for the period of 2010-2016 while the second number shows the average change comparing 2016 to 2010. Comparing 2010 to 2016, operating margin improved by 4%. In contrast, the average margin for a hospital is 10% for the period of 2010-2016, but the 2016 margins are down 13% when compared to 2010. However, we can start with inventory management and the tracking of materials in the hospital more efficiently.

Supply Chain Management:The Upcoming 2011 Holiday Buying.

Infosys Supply Chain Management

Just about a year ago,I penned a guest posting on the Infosys Supply Chain Management blog that commented on the pending 2010 holiday buying season and how consumers would test retailer multi-channel operations (MCO) and synchronization. In our commentary, we cited three trends that would manifest themselves in 2010, namely. 3.The state of product demand planning and inventory management among retailers becoming more advanced. December 2010. November 2010.

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. New Study Shows a Rise in US Company Inventories. SupplyChainDigest benchmark study of about 100 companies reveals an increase in US company inventories since the recession. “In In the US economy, overall inventory levels have been ticking up in recent years.

Supply Chains to Admire – Technology Computer Hardware Calculation Example

Supply Chain Insights

As we have seen, the Supply Chains to Admire methodology looks at 3 components: improvement (measured by being in the top 2/3rds of the Supply Chain Index ranking for the industry), value (measured by being at or above industry average in either Market Capitalization or Price to Tangible Book Value), and performance (measured by being at or above industry average for Growth, Operating Margin, Inventory Turns, and Return on Invested Capital).

Supply Chain Graphic of the Week on Working Capital Performance Over Time

Supply Chain Digest

Percent Since 2014, but Inventory Performance is Flat Since 2010Corporate Cash Conversion Cycles have Improved 7.5

The Remedy for Disruption in the Medical Device Industry

QAD

Efficient Inventory Management . The Santa Clara Medical Center reported that 383 medical items went missing between 2010 and 2014, including incubators, heart monitors and mammography machines.

Weathering the Next Recession

synchrono

When consumer demand dropped due to the recession, this excess capacity could no longer be ignored because it led to mountains of unsold inventory and raw materials sitting in the supply chain. In 2010, Harvard Business Review said that 17% of the companies they were following in a post-recession study had gone bankrupt, were acquired or went private. Likewise, the components that go into the final product will not be produced either, lowering both finished goods and WIP inventory.

Looking Beyond Red Arrows

Supply Chain Shaman

As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance. The growth rate of 2016 when compared to 2010 is an increase of 28%. In critical industries like semiconductor and computer hardware, growth is down, operating margin is off and inventory turns are declining. When I engage with supply chain leaders , I ask the question, “Are you making progress?”

Lora Cecere: ‘All the metrics must be in balance’

Supply Chain Movement

They lack understanding of their inventory,” says Cecere. Desmet mentioned a company whose inventory turns, despite being ‘best in class’, are out of balance with profitability. That French-American company drastically reduced its inventory following the financial crisis, but when demand returned to its original level more quickly than expected the company’s suppliers were unable to keep up.

How Machine Learning Is Redefining Supply Chain Management

IQMS

Key factors influencing inventory levels, supplier quality, demand forecasting, procure-to-pay, order-to-cash, production planning, transportation management and more are becoming known for the first time. Gaining greater contextual intelligence using machine learning combined with related technologies across supply chain operations translates into lower inventory and operations costs and quicker response times to customers.

The Best Practice Frontier in the 3D Supply Chain Triangle

Arkieva

Ensure continued alignment by sharing inventory turns as a KPI. Figure 1 shows it for inventory and service. The idea is that more service, typically comes with a higher inventory (or lower turns). They increase the service but require a higher inventory. Figure 1 – The best practice frontier – Inventory vs Service. An example can be refining the safety stock calculations and adopting a stochastic inventory optimization.

Top 9 Marketplaces to Sell Your Products in the Middle East

Vinculum

Established in 2010, Cobone is one of the most seasoned online marketplaces in the Middle East. Sell on Marketplaces Globally Inventory & Order Management Cross Border Strategy Brands Multi-brand Retailers Marketplaces Industry Insights Marketplace Sellers Seller on MarketplacesThe golden rule of marketing and sales is – be where your customers are.

Supply chain risk management in 2017

Kinaxis

Maybe the one good thing to come out of it was some companies figured out how they could survive with lower inventories. The 2010 volcanic eruption in Iceland. For example, travel was halted all together as a result of the 2010 Eyjafjallajökull volcano. Inventories were stranded as supply chains scrambled to understand the impact on their customers. by Bill DuBois Financial crisis. Check. Environmental catastrophes. Check. What’s next?

Supply Chains to Admire Household Nondurables Calculation Example

Supply Chain Insights

The winners are those companies that show they are in the top of their industry in: improvement (measured by being in the top 2/3rds of the Supply Chain Index ranking for the industry), value (measured by being at or above industry average in either Market Capitalization or Price to Tangible Book Value), and performance (measured by being at or above industry average for Growth, Operating Margin, Inventory Turns, and Return on Invested Capital).

Linking the Supply Chain Triangle to Strategy

Arkieva

In our 3 previous articles, Balancing Cash Cost and Service: The Supply Chain Triangle , Best Practice Frontier in the 3D Supply Chain Triangle and Financial Benchmarking for Inventory Turns and Working Capital we have shown there is a lack of alignment for targets on the cash, the cost and the service side of what we have defined as the Supply Chain Triangle. We have looked at the EBIT per inventory $ or per working capital $ to define a best-practice frontier.

Walmart: 3 Keys to Successful Supply Chain Management any Business Can Follow

Cerasis

Walmart would not have the ability to provide such low prices and have consistent inventory in the over 5,000 stores in the United States and over 1.3 Riding a rising five-year trend, retail juggernaut Walmart® grossed $476 billion in the fiscal year that ended in January 2014, up from $408 billion in fiscal 2010, according to The Wall Street Journal’s MarketWatch. Walmart has held a place among Gartner’s top 20 supply chains since 2010.

Logistics Industry’s Slow Economic Comeback Continues in Spite of Challenges

Supply Chain Network

Gross Domestic Product (GDP) in 2010, as compared to 7.7 Further analysis shows that 2010 was about on par with 2005, and still well below the pre-recession years. This year’s report presents an overview of the 2010 economy, the industry’s key trends, and the total U.S. logistics costs for 2010 and their percentage of the U.S. percent in 2010, making up for more than half of last year’s decline. Inventory carrying costs increased 10.3

5 Success Factors in Effective Omnichannel Planning

Solvoyo

Online shopping has been on a steady rise since 2010. between 2010 and 2020. They managed online product availability separate from store inventory. Incorporating returns into forecasting and inventory decisions. It’s that time of the year! Black Friday is here.

Supply Chain Management:Increase in Operational Efficiency.

Infosys Supply Chain Management

One of the biggest time consuming and mundane activities in warehouse management is the pick up of inventory and the appropriate shelving of inventory. Imagine picking up inventory from the warehouse without having any paper lists or even any barcode scanners. Yes, voice technology enables hands and view free inventory pick up, stock put away and inventory management in the warehouses in real time. December 2010. November 2010. October 2010.

5 Success Factors in Effective Omnichannel Planning

Logistics Viewpoints

Online shopping has been on a steady rise since 2010. between 2010 and 2020. They managed online product availability separate from store inventory. Incorporating returns into forecasting and inventory decisions.

Live Webcast – Supply Chain Transformation: Avaya’s Journey

Kinaxis

He holds Bachelor’s and Master’s degrees in Industrial Engineering from Auburn University, and is an APICS Certified Fellow in Production and Inventory Management (CFPIM). Director, Global Operations, Sales, Supply and Inventory Planning. CSCP certified in 2010, Benji has broad experience in demand, supply, inventory, and financial risk planning.

Five Things We Can Do to Get Ready for the Next Pandemic

NC State SCRC

Handfield, 2010, p. 2010). It’s probably too late to already be thinking about how to fix the bungled response to the current pandemic. We can’t really fix it now that it’s set in motion, as much of the damage has already occurred.

Where Do We Go From Here? Taking a Look at the 2016 State of Logistics Report

Cerasis

percent annually between 2010 and 2014. Changes in transportation and storage of inventory costs made up significant portion of the 2016 SOL. Inventories are a major issue analyzed by the 2016 SOL as well. While inventories had steadily grown since 2005 at 5-percent annually, growth of inventories in 2015 flattened out. Yet, the inventory cost increased in 2015 by 5.1 In terms of physical requirements, inventory levels remained the same as 2015.

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On-Demand Webcast – Supply Chain Transformation: Avaya’s Journey

Kinaxis

He holds Bachelor’s and Master’s degrees in Industrial Engineering from Auburn University, and is an APICS Certified Fellow in Production and Inventory Management (CFPIM). Director, Global Operations, Sales, Supply and Inventory Planning. CSCP certified in 2010, Benji has broad experience in demand, supply, inventory, and financial risk planning. by Alexa Cheater Did you miss our recent live webcast on Avaya’s supply chain transformation? No problem.

Xero Roadshow Australia’s App Hot Seat

Unleashed

If you’re in Sydney, Melbourne, or Brisbane, come along to our presentation — we can help you identify your clients’ inventory needs and answer any of your questions. 28 Albion Street, Surry Hills NSW 2010. Company News Partners accountants accounting AU inventory management software unleashed partnersXero Roadshow App Hot Seat event. To kick off Xero Roadshow Australia this year , Xero is hosting an App Hot Seat event the night before.

Intelleflex Announces Cellular, GPS-equipped RFID Reader & Cloud-based ZEST™ Data Services Platform

Supply Chain Network

To achieve full efficiency, the supply chain needs secure, accurate and timely data on the inventory status and condition of its products. This model improves operational efficiency, reduces friction and waste in the supply chain, and improves inventory management, asset tracking and personnel monitoring.

Uncovering the hidden lessons in ???The Goal??? (part 2)

DELMIA Quintiq

Next, he translates the financial metrics into three measurements applicable to production: throughput, inventory and operational expense. He realizes that as long as throughput increases while inventory and operational costs decrease, the production plant will be profitable. 2010), The Goal: Third Edition, Gower Publishing: Burlington, USA. If you read my previous post about The Goal, you already know who Alex Rogo is.

The 7 Trends Shaping The Future of the Logistics Industry

Cerasis

When you consider that Apple introduced its iPad in the year 2010, and now tablet sales are about to overtake the combined sales of desktops and laptops, it becomes apparent. The idea is to give clients more control of transportation and inventory since they are looking for more visibility. In today’s society, technology has been changing at an unprecedented pace.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Companies that directly connect financial data to supply chain data without creating a feasible plan at an item/location level rate themselves significantly lower on S&OP effectiveness creating higher costs, levels of inventory and order short shipments. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service.