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Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

by Jeswin Philip The Food Packaging Trends and Advances report from PMMI forecasts that the US Food and Beverage industry will experience a 2.9 % CAGR through 2022. The report also mentions that the global growth rate is almost double that of the US food industry. Food for thought: Time for a different kind of supply chain. What is vendor-managed inventory? The benefits of the vendor-managed inventory process include: Enhanced visibility for vendor.

10 Inventory Metrics You Need to Know Right Now

EMERGE App

You can with inventory metrics. Why should you care about inventory metrics ? We think these are the top 10 inventory metrics that you need to know right now. Top Ten Inventory Management Metrics. Inventory Turnover. Inventory Turnover = Cost of Goods Sold / Average Inventory. This is the number of times inventory is sold within a period of time, typically a year. Start by reducing your inventory.

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Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. When I sat down to write the book, Bricks Matter, I believed that companies had used supply chain technologies to reduce operating margin and improve inventory turns. We are currently mapping the progress of all public manufacturing, distribution and retail companies on three factors: Strength: Year-over-year improvement on operating margin and inventory turns for the past six years.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

How Supply Chain Efficiency Can Cut Costs for Food Ingredient Shippers

Zipline Logistics

Controlling costs in the supply chain is an excellent way for businesses in any sector to find increased profitability, but it is especially true for food ingredient shippers. Pragmatic analysis can uncover opportunities to make improvements that can help control inventory and manage costs. By having enhanced visibility into crucial logistics processes, ingredient shippers can increase efficiencies, reduce cost, shorten time to market, and improve inventory management.

3 Technology Companies Disrupting Shipping

FLEXE

Basically, responsible for ocean freight carriers, ocean ships that rely on truck companies. Shipping a 40-ton container back in July or June used to cost about $700 — a 40-ton container. More than half of Hanjin’s ships were chartered. So the chartering companies are already receiving the ships back and they need to rent them. MSC is interested to charter those ships. And, do I have food grade certification? The metric — the ROI metric.

The Story Continues…. Let’s Don’t Sugar Coat the Real Issue

Supply Chain Shaman

As a country, I think that we need to rethink supply chain flows for chassis, drayage and the unloading of larger ships. I don’t think that the ports are up to the challenge of moving the high-levels of freight with larger ships without rethinking unloading space, equipment and flows. It takes 2 to 3 days to unload a ship. Today, the number of chassis required for a ship is between 2,000 and 5,000. The ships are getting larger.

Don’t Make These 8 Horrible Inventory Management Mistakes Before Halloween

EMERGE App

Not cleaning up the inventory skeletons in your closet can mean a difference between a ho-hum year and a bumper year. Here we’re going to cover some common inventory management mistakes that businesses make while winding up the year. Inventory Management Mistakes – 8 Horrors of Inventory Management. Let’s face off with these inventory management mistakes that may be lurking in your business right now. Horror 3: Disappearing Metrics.

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

The first step was to charter a research project with the Arizona State University statistics department to analyze which combination of metrics drives the highest market capitalization. Mondelez Performance Against the Food Group for 2010-2019.

How to Improve Your OTIF Score: 15 Tips for On-Time and In-Full Delivery

Zipline Logistics

Delivering on-time and in-full is essential to success and a metric used by retailers when evaluating partnerships with vendors of all sizes. But first, let’s look at the background of OTIF metrics and why they came to be. According to a report from McKinsey & Co , “The US food retail industry loses an estimated $15–20 billion in sales every year because items are out of stock or otherwise unsaleable.”. OTIF metrics are not universal.

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. The machine learning algorithms in IBM’s Watson platform were able to determine if a shipping container and.or Also, machine learning is leading to more accurate measures of Overall Equipment Effectiveness (OEE), a key metric many manufacturers and supply chain operations rely on.

Retail Store Location Planning ? Creating Balance, Driving Profit

Logility

The approach taken by Whole Foods is attractive, at least superficially. Those two locations may differ across many important metrics: footprint, demographics, seasonality, logistical support, sell-through history, competitive landscape, sales trends, to name a few. More specifically, a planner lays out the merchandise plan by week, by category, by defined business metrics. Without a store plan, distribution to stores with declining sales will create inventory risk.

Retail 100

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

The company is a food and beverage company. Most companies cannot get to data by customer on orders shipped incomplete to understand root cause analysis. In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. inventory turns. for inventory turns define best-in-class performance? Analyze Inventory: Muda Versus Buffers.

Power B2B Networks

Supply Chain Shaman

If you ask companies if they would like better inventory and global supply chain visibility, you will get an overwhelming answer of, “Yes!” In figure 1, it is clear in process networks (industries of chemical, pharmaceutical, and food) that there is a significant different in capabilities when companies use B2B Networks versus EDI, Fax, email or spreadsheets. Today, it is rolling off the presses, as I write, and it will ship from the Amazon warehouses on December 15th.

Defining Your Own Logistics Competitive Weapon

Talking Logistics

What is the impact of Prime’s service offerings, including fast and free shipping, on Amazon’s top-line growth? Of course, Amazon’s ever-growing shipping and logistics costs are a drag on profitability, which the company offsets in part with its highly-profitable cloud computing business. For a long time, C-level executives viewed supply chain management, especially the logistics function, as a cost center.

How Supply Chain Will be Affected by Hurricane Harvey

Material Handling & Logistics

Hurricane Harvey has struck a significant blow to the Houston, Texas metro area, home to the sixth largest import terminal in the world, as well as all of the shipping lanes in the Gulf Coast area. The Institute for Supply Management conducted a special survey that asked members to assess how Harvey might impact six key business metrics and whether they may be impacted by shortages of input materials due to Harvey. "Our Most Impacted Metrics. Moderately Impacted Metrics.

8 Ways to Make Your Fulfillment Center Run More Efficiently

EazyStock

When she isn’t writing blog articles, she enjoys spending time in downtown Charleston, South Carolina and all the amazing food her hometown has to offer. Supply Chain 24|7 reports that up to 50 percent of labor resources at a fulfillment warehouse are often dedicated to the picking-to-shipping process. Accurate inventory is foundational to success. Many of the biggest hurdles to fulfillment center efficiency start with inventory control issues.

Supply Chain Analytics: A Continued & Renewed Focus on Using Data for Improvement

Cerasis

As explained by Bruce Tompkins , improving the supply chain includes improving service levels through better inventory management, reducing operating costs, reducing order-cycle time, achieving 100-percent accuracy, improving supply chain security and control, and improving flexibility. Failure to do so could result in the assessment of fines and penalties against the organization by the Food and Drug Administration.

Things Aren’t Always as They Appear in Today’s Supply Chain: The Direct Correlation Between the Accuracy of Your Mobile Data Inputs and Your Factory’s Outputs

OneSCM

That is why it’s fair to say that what you see is not always what you get in today’s high-tech manufacturing plants and warehouses (once the final performance metrics are tallied days or months later). If that seems too “basic” for a problem as big as visibility appears to be – or too simple of a solution to your inventory traceability challenges – remember this: You can only see what the data tells you.

Q4 2020 Freight Market Update: Preparing for 2020 Peak Season

Zipline Logistics

Tender rejections, a metric used to determine how much contracted freight is rejected and sent to the spot market, have been hovering around 25% for the past few months. Blog Post Data and Technology Industry Trends Retail and Grocery Shipping Best Practices

How Gen Z's Consumer Expectations Drive New Supply Chain Trends

AFFLINK

Gen Z has grown up with two-day and same-day shipping. Gen Z is able to order food from their phone, or even order a taxi through an app. This has driven many companies to engage in last mile shipping services: rather than shipping to stores, more companies are having to ship directly to consumers. Many companies have started using resources such as Amazon FBA (Fulfillment-by-Amazon) as a way to offload these last mile shipping needs.

Say Customer Service and Mean It

Supply Chain Shaman

The organization is not clear on accepting special requests and expedited shipping policies, often resulting in a lower margin. Many of my clients talk about a customer-centric supply chain but rely on useless metrics from an annual survey or a net promoter score.

Top 10 Mistakes You’re Making Right Now as a Wholesaler and Distributor

EMERGE App

As some of you may know, EMERGE App was born out of an in-house inventory management solution for a custom t-shirt printing business that our founder ran while in school. But it ultimately brought respectable profits and a pivot to the inventory management solution that you see today. Any decent and respectable inventory management solution should allow orders to be entered and invoices generated on the go. Benchmark yourself against some metrics.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more. Supply Chain Innovators of 2013 : paperless food chain, VLMs, cold chain fleet management, and more. It will allow for the automation of more complex warehousing tasks, such as unloading shipping containers and picking packets or individual e-commerce orders. We salute the year’s top advancements in supply chain technology and processes.

What Is Retail Consolidation?

CH Robinson Transportfolio

Maintaining inventory levels and optimizing order quantities, while keeping compliance requirements in mind, requires a strategic approach. If you’re currently shipping less than truckload (LTL) or underutilized truckload freight, a retail consolidation program might be the answer you need. The right shipping strategy is vital to ensure your products are where they need to be when they need to be there, especially in times of disruption.

Average Order Value: What Is It and Why Is It Important?

Unleashed

Average Order Value (AOV) is a metric that helps retailers understand their customers’ purchasing behaviours. Like with all other key metrics , AOVs can be tracked over any time period, but most companies prefer to monitor their AOVs as a moving monthly average. Knowing your company’s average order value helps you to evaluate your pricing strategy and online marketing efforts by providing the metrics needed to measure the long-term value of individual customers.

Things Aren’t Always as They Appear in Today’s Supply Chain: The Direct Correlation Between the Accuracy of Your Mobile Data Inputs and Your Factory’s Outputs

OneSCM

That is why it’s fair to say that what you see is not always what you get in today’s high-tech manufacturing plants and warehouses (once the final performance metrics are tallied days or months later). If that seems too “basic” for a problem as big as visibility appears to be – or too simple of a solution to your inventory traceability challenges – remember this: You can only see what the data tells you.

Supply Chain Best Practices during a Quarantine

SupplyPike

Suppliers are also seeing issues with shipping companies being overwhelmed. Make sure you communicate with your carriers and be sure they can ship your orders out by the time your buyer needs them. Your buyer may also need to work on directing inventories to more active locations. With demand so high for a lot of key products, you’ll need to closely monitor short-term and long-term demand and inventory. Another solution is to create inventory reserves.

DC 49

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

6 River Systems

Many metrics can be used to determine the top 3PL warehousing companies, such as company revenue, the number of warehouses, total warehouse square footage , etc. A behemoth in the logistics industry, UPS has operations in shipping, air freight, trucking, last-mile delivery and drone delivery.

Executing Customer-Centric Supply Chain Strategies

Supply Chain Shaman

I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. In Agrosciences is the customer the distributor of seed/additives, the farmer or the downstream purchaser of food products? The conversation focused on P&G’s slow response to adapt to smaller units and flexible shipping policies. Price and shipping policies should go hand in hand. Shown in Figure 1 is a cost-to-serve analysis from the food industry.

Transforming Consumer Value Chains: Navigating The Power Shift to the Shopper

Supply Chain Shaman

Also note that beauty, consumer packaged goods and food growth is also declining. Table 1: Contract of Growth, Operating Margin, Inventory Turns and Cash-To-Cash for Consumer-Facing Industries. In parallel, take a closer look at inventory turns where only pharmaceutical companies made slight progress. For today’s supply chain leader, the pressures on both operating margin and inventory turns is great. With the dawn of eCommerce, companies must now ship the EACH.

Global Luxury Management “Lifestyle” brands require push supply chain design customization

Supply Chain View from the Field

More and more global luxury brands such as Gucci, Louis Vuitton, and others are promoting themselves as Lifestyle brands, spanning many products including fragrance, home collections, apparel, paint, wallpaper, foods, and many other products. Such brands may ship small runs of five bags, gowns, or shoes that cost thousands of dollars, whereas typical apparel products are produced in volumes of hundreds of thousands going to low cost retailers.

Walmart again Raises Chargeback Stakes

Enterra Insights

Reporting on this development, Jennifer Smith ( @jensmithWSJ ) and Sarah Nassauer ( @SarahNassauer ) write, “Looking to cut inventory while meeting e-commerce demands, the retailer wants more of the goods it orders delivered on time and in full. After all, shave off $20 here for a short lot, $5 there for a cracked pallet and $10 over here for a mangled shipping label, and before long, it can run into real money. threshold for food consumables.

KPI 109

3PL Warehousing 101

Kanban Logistics

It’s home base for sophisticated eCommerce operations, high-velocity retail distribution, vendor managed inventory, and a variety of other services. Common WMS capabilities include: Inventory management : The WMS will record and manage your products according to key characteristics like warehouse location, available quantity, pallet ID, serial number, lot number, and expiration date. FedEx, USPS and UPS) for real-time shipping updates. Vendor-managed inventory (VMI).

3PL 40

The complete guide to order fulfillment: types, channels, costs & finding the best fit

6 River Systems

In this guide we’ll discuss: Different types of order fulfillment Software options to strengthen order fulfillment Inventory picking techniques The difference between omnichannel and multichannel fulfillment Common costs associated with order fulfillment Finding the best order fulfillment choice for you More resources on order fulfillment Different types of order fulfillment Before we get into the nitty-gritty, let’s first take a look at exactly what order fulfillment entails.