How manufacturers optimize their inventories

ToolsGroup

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions (that's him on the left), sat down with me to discuss how manufacturers optimize their inventories. Colin: How do inventory optimization (IO) and multi-echelon inventory optimization (MEIO) enable manufacturers to operate more efficiently? IO uses powerful analytics to generate the right inventories to meet demand, address demand volatility, and achieve targeted service levels.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

After a year full of more scandals, indictments, political contentiousness, workplace violence, school shootings and natural disasters, maybe it’s time we all took a collective breath and focused on some of the positives that came out of 2018. We hope you enjoy this salute to the best of 2018, and we look forward to even more innovations in 2019. Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more. Source ID.

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Segmenting Your Inventory by Gross Margin and Demand Variability

ToolsGroup

Source: Gartner Research. Gartner Research analyst Paul Lord has developed a thought-provoking approach (shown in the above diagram) for tailoring supply and inventory tactics to different inventory segments. Traditional ABC inventory models segment inventory into A, B and C categories based on annual consumption value. As we showed in a previous blog, it’s not the only way to segment your inventory, nor nearly the best. Inventory Optimization

How manufacturers optimize their inventories

ToolsGroup

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions (that's him on the left), sat down with me to discuss how manufacturers optimize their inventories. Colin: How do inventory optimization (IO) and multi-echelon inventory optimization (MEIO) enable manufacturers to operate more efficiently? IO uses powerful analytics to generate the right inventories to meet demand, address demand volatility, and achieve targeted service levels.

Supply Chain Predictions for 2018

Material Handling and Logistics

A look at the supply chain trends and technology that will come into play in 2018. These concerns will extend into 2018, as companies work on a regulatory standard – though nothing has emerged yet. Strong players in the market will emerge as platform providers to aggregate the IoT data and provide key insights into that data that drive better business decisions in 2018. 2018 will be about predicting the future, not just about understanding the present.

Blockchain in Supply Chain: 2 Ethereum-Based Projects That Demonstrate How Blockchain Can Improve Supply Chains

Cerasis

WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. What makes Ethereum different is that it actively encourages software development teams to use its open-source protocol to design tokens that run on top of the Ethereum blockchain. Provenance ensures transparency in supply chains, with the aim of encouraging brands to source materials and labor in an ethical and fair trade manner. Supply chains are messy.

Top 25 Supply Chains of 2018

Material Handling and Logistics

Our look at the Top 25 (plus 4) Supply Chains of 2018 examines how the best companies in the world excel at managing their global supply chains. So in 2018, McDonald’s joins Apple, Procter & Gamble and Amazon on a separate “Masters” list, as one of the “best-of-the-best.”. Source ID. Source ID. Source ID. Source ID. In particular, the company has been criticized for its long-time practice of using local water sources for its products.

Inventory Management in Service Logistics Industry

Talking Logistics

What is Inventory Management? For Manufacturing it’s about carrying zero or minimum inventory. For Logistics the focus is on high inventory turns. Inventory Management is about having a right balance of expectations from different functions of the supply chain. Inventory Management is a function that should always be in sync with your supply chain strategy and in turn depends on your overall business strategy. What does it mean for inventory?

Show Me the Money: MH&L’s 2018 Salary Survey

Material Handling and Logistics

inventory/materials manager with a food & beverage manufacturer with 26-30 years of experience, living in the Middle Atlantic region and earning $107,000. As the results of the MH&L 2018 Salary Survey indicate, the size of the paycheck has become almost as important. “If Since last year, in fact, the situation has worsened, as the percent of white/Caucasian managers increased from 76% in 2017 to 84% in 2018. Source ID. Source ID. Source ID.

Omni-Channel Logistics Leaders: The Importance of Real-Time Inventory Visibility

Talking Logistics

Note: The following is an excerpt from “ Omni-Channel Logistics Leaders: Top 5 Inventory Insights ,” based on research conducted by Adelante SCM and LEGACY Supply Chain Services with input from nearly 100 supply chain professionals from retail, manufacturing, and logistics service providers companies in the United States and Canada. Source: “Omni-Channel Logistics Leaders: Top 5 Inventory Insights,” Adelante SCM & LEGACY SCS.

Five Tips on Sourcing Products From China

EMERGE App

Google a phrase like “sourcing products from China” and you’ll instantly be faced by almost 39 million results! You need to source for products to sell at wholesale prices to your retail customers. And the place to source for most, if not all, of your products is in China. This blog post doesn’t aim to be the ultimate guide to sourcing goods from China. I like to start with a broad-based search at Alibaba and Global Sources. Introduction.

Don’t Take a Holiday from Inventory Management

Talking Logistics

The Importance of Inventory Management. When it comes to inventory management, new trends are demonstrating that less is more. Having less inventory on-hand increases liquidation, allowing for a more agile response to shifting consumer trends. Companies that have too much inventory on-hand right now are struggling to clear out space ahead of the season, slashing prices and concerning stakeholders as profit margins creep downward.

Risk Management: Is 2018 the Year of Living Dangerously?

Enterra Insights

Globalism has been a boon to the supply chain by expanding sourcing, opening new markets, accelerating growth and highlighting opportunities to save money. If supply chain complexity, global competition, information collection challenges, climate change, natural disasters, and protectionism aren’t enough to worry about, Benjamin Roussey insists five IT security risks are going to make 2018 a nightmare for risk managers.

7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

This Week in Logistics News (September 3-7, 2018)

Talking Logistics

This is yet another example of how retailers and manufacturers are trying to find the right balance between delivering an enhanced customer experience and finding the optimal mix of inventory, transportation, and labor costs. Walmart’s aim to reduce shipping costs means suppliers have to ship inventory to more locations, which adds cost and complexity to their operations. Spark Delivery: Walmart’s Crowd-Sourced Delivery Platform. I joined Snapchat this week.

It’s Time to Revisit Vendor Managed Inventory

synchrono

A few decades ago, Vendor Managed Inventory (VMI) was a hot topic. Many manufacturers saw it as a way to reduce inventory levels and costs. If they could get their suppliers to maintain ownership of raw materials or subcontracted components until consumed, inventory levels would naturally drop—on paper anyway. And if the forecast was overstated, the manufacturer didn’t need to worry about excess vendor-managed raw material or contracted-components inventory.

The Inventory Accuracy “Confidence Gap”

Talking Logistics

Note: The following is an excerpt from “ Omni-Channel Logistics Leaders: 5 Key Insights to Improve Inventory Performance for 2019 ,” based on research conducted by Adelante SCM and LEGACY Supply Chain Services with input from nearly 100 supply chain professionals from retail, manufacturing, and logistics service providers companies in the United States and Canada. And it begins with improving their inventory accuracy. The Inventory Accuracy “Confidence Gap”.

This Week in Logistics News (May 7-11, 2018)

Talking Logistics

Source: [link]. JDA® Luminate Warehouse : Enables task optimization through AI and machine learning by bringing together actual work tasks, travel distance, task duration and completion time, coupled with real-time positioning of people, machines and inventory, resulting in balanced, prioritized and prescriptive tasks to eliminate congestion and improve completion throughput. My wife often jokes that she is the VP of Supply Chain and Logistics in our family.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups.

Gartner’s 2018 Top 25 Supply Chains List! Is it Still Relevant?

Supply Chain Game Changer

Gartner recently announced their 2018 Top 25 Supply Chains List. The 2018 Gartner Top 25 Supply Chain List. Inventory Turns 3. (10%). Source: Gartner. But overall most of the list was the same as 2017. In fact if you go back 5 years to 2013 you will find that most of the names are the same as on the 2018 list. Return on Assets (ROA) and Inventory turns are also a part of the scoring process. Further an Inventory turn of 1.0 Subscribe Here!

Design, Operating and Situational Inventory Trade-Offs

ToolsGroup

Gartner analyst Paul Lord has developed a framework to better understand inventory trade-offs by categorizing those decisions according to the objectives they are meant to achieve: structural, operational and situational. Many companies struggle with decisions such as “How many days of sales or inventory turns per year should we target? or “How can we reduce inventory and improve our balance sheet?”. Structural inventory is a direct result of design choices.

Parts Are Not Parts

Supply Chain Shaman

A slight change within a function–in sourcing or manufacturing, or along the chain–can greatly impact the outcomes of cost, customer service, or working capital. Today, over 90% of companies have deployed ERP and APS, but as shown in Table 1, inventory levels have grown not decreased in over 80% of industries studied. Days of Inventory by Industry Across Years. Let’s take a closer look at sourcing. This includes: Prioritized Inventory Actions.

How Procter & Gamble is thriving on supply chain complexity

ToolsGroup

Source: Gartner Supply Chain Executive Conference. P&G knew that it needed to improve its S&OP forecast quality, while reducing the human effort and inventory needed to meet customer service levels. In their worlds, cash is king and inventory is only viewed as a financial measure. According to Caradonna, this dynamic led to P&G’s most powerful GDM distributors always getting the lion’s share of popular fast-movers, but regularly ending up with too much inventory.

Why Blockchain Within The Supply Chain Makes Perfect Sense

Cerasis

WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. Instead of having to deal with an ineffective point-to-point communication system like EDI and the complexity of reconciling multiple data sources with multiple permission models, Distributed Ledger Technology (DLT) provides a singular mechanism to securely integrate, harmonize, and synchronize data for all participants.

An executive’s guide to AI in supply chain management

Kinaxis

Improve your supply chain visibility and risk insight by using AI to track and predict possible supply chain disruptions based on inputs and correlations across multiple data sources, including weather forecasts, news and even social media. Use in supply chain planning: Unlock new sources of revenue savings by implementing a self-healing supply chain that can continuously observe, monitor and correct out-of-tolerance lead times for all related products based on historical data and slope.

Digital Transformation of Supply Chain Planning at SKF

ToolsGroup

Jörg Schlager describing SKF's Integrated Planning (Source: Optilon). It managed local inventories fed by regional warehouses and factory warehouses (See Figure 1 below). Each planner owns the forecast and inventory globally and an end-to-end plan - and is responsible for achieving external customer service targets, as opposed to multiple independent organizations, often with more internally-focused targets. Figure 1 Source: SKF. Figure 2 Source: SKF.

Demand-Driven Transformation at Shell

Supply Chain Shaman

They saw a steady drop in inventory and reduced working capital by about 50% over the period of 2011-2015. Impact of Demand Sensing on Inventory Levels. By leveraging demand sensing and the Multi-tier Inventory Optimization (MEIO) platform– using machine learning and some cognitive technologies–from Terra Technology on top of SAP APO, Shell successfully launched an analytics platform initiative to improve the demand signal and reduce safety stock.

Retail supply chain management and the rise of fast fashion

Kinaxis

While it’s too early to deem the business model for traditional fashion retailers obsolete, “on-demand” fashion has forged ahead by sourcing goods that are cheaper and faster to gather and have been quicker to leverage technology into their shopping experience, helping consumers find the best deals through online stores.

Retail 186

RFID in the Supply Chain: Fizzling Technology or the Future of Effective SCM?

Cerasis

More recently, with the rise of interconnected systems, the analytics to derive value from those systems seems, and decreased costs, RFID is resurrecting as a solution for increasing supply chain management (SCM), visibility into processes, and reducing inventory tracking costs. WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. Passive RFID tags, on the other hand, rely on power sources within external RFID tag readers.

SCM 191

What is Inventory Management?

EMERGE App

What is Inventory Management? Inventory management, in a nutshell, describes your efforts to manage, assess and report on the flow of your stock of goods. You might be using pencil-and-paper, spreadsheets or sophisticated inventory management software to do this. Nowadays it refers to inventory management software because computational power is needed to effortlessly calculate, for example, landed costs for purchases and CBM for your packing lists.

Gartner Questions Supply Chain “Control Towers”

ToolsGroup

Gartner's recent research report entitled Don’t Believe the Control Tower Hype — Buyer Beware (August 2018) questions vendor messages that are “loaded with marketing hype”. Capabilities such as identifying near-term exceptions that need attention (like capacity shortage, inventory shortage, late shipments) don’t really belong in control towers, they say, but instead are foundational to modern supply chain management (SCM) solutions.

From “Rules of Thumb” to Non-Linear Algorithmic Optimization

Logility

I used the many nuggets of information from this book to determine my company’s inventory performance against accepted standards and to alter inventory rules in our legacy system. Companies still use rules of thumb like ‘days of supply’ to manage inventory when it has been proven that reductions of up to 30% in overall inventory can be achieved through the adoption of inventory optimization. Inventory Optimization

Fast Fashion's Inventory Woes: 3 Ways Retailers Can Stay in Business

Elementum

However, this dynamic industry is now facing the same challenges as some traditional retailers —unsold inventory and profit losses. Inventory Woes. billion worth of unsold inventory. CEO Karl-Johan Persson stated that moving forward, the company will need to “ensure a faster, more flexible and more efficient supply chain” to address misalignment of inventory and demand.

12 Distribution Center Best Practices You Need to Implement Today

Cerasis

Unfortunately, you might have problems with inventory shrinkage that you don’t even know about and won’t have to face until an order picker comes up short, and one of your customers has to look elsewhere. The more you can eliminate sources of human error — such as taking notes on scraps of paper —?the Ditch Inventory for Ongoing Cycle Count s . We’ve all sat, stood and squatted through the long after-hours drudgery of a full inventory count.

The Top 5 Changes That Occur With AI in Logistics

Cerasis

Robots are locating, tracking, and moving inventory inside warehouses, they are conveying and sorting oversized packages at ground distribution hubs. The Top Logistics Trends that Will Impact Logistics Management in 2018?. Such figures cannot be easily improved at the source, so algorithms are being used to analyze historical data, identify issues and improve data quality to the level where significant transparency on the business is gained.