Posts categorized as 'Inventory management'

Are you getting the most out of your inventory management process?

AndrewDunbar

Inventory Management ManagerInventory is often the single largest asset on a company’s balance sheet and your inventory management process can have a huge impact on your organization’s bottom line. Understandably, the inventory management process is getting a lot of attention by organizations looking to squeeze out some extra profit in a challenging marketplace.

When you think about the priorities of your inventory management process, what’s the first thing that comes to mind? Is it reducing excess and obsolete? Improving on time delivery performance? Balancing stock between distribution centers? Strategic reduction of your lead times to help obtain and fulfill more customer orders? Now what’s your next priority? And the one after that? Your first answer is likely dependent on your industry, the size of your organization, your role, and your company’s corporate strategies. Your second answer, if you have one, is typically dependent on the maturity of your inventory management process. Finance and business management will prioritize inventory reduction to increase profitability. Customer service representatives prioritize stock-out reductions to improve customer satisfaction. Manufacturing operations needs just the right parts available at just the right time. The inventory manager is often caught between multiple groups with conflicting priorities and becomes an expert firefighter, skilled at supporting whoever complains the loudest. It’s easy for an inventory manager to get tunnel vision and give one metric too high a priority over others.

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Is the “shared economy” changing logistics?

AlvaroFernandez

A mailbox full of mailDid you know it costs approximately $100 to send an envelope from Ottawa, Ontario, Canada, to Caracas, Venezuela? That’s for three to five day service! New York to London? That will cost you $50 to $100, but it’ll get there overnight. Of course, we’re not only paying to get that envelope from point A to point B, but for a certain level of service as well. What if you don’t require the highest level of service, but still want to avoid the nightmares of dealing with national snail mail companies? (To be fair, Canada has had its share of mail nightmares in the past).

A popular subject in several expat Facebook groups is checking to see who’s planning on flying back to their origin country, and whether those individuals would mind taking along a little extra cargo. I’ve been part of a few of these groups. It usually starts with someone asking for it as a favor, but some, particularly if it’s something bigger than an envelope, offer to pitch in a few bucks to help cover the checked baggage fees. In a way, travelers are informally monetizing what we might call their unused capacity. Upon arrival, they’re usually met by the intended recipient at the airport, or occasionally will agree to meet at more central location, or even relay the package to a local courier to complete the shipment.

So, when I read about Roadie, a startup whose business model is about providing a platform to enable people to monetize their otherwise wasted capacity in the trunk of their cars, I had one of those “about time!” moments. Granted, it’s not the budget-friendly cross-border air shipping service I dream about for my occasional need to send documents overseas, but I hope it might pave the way for it.

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Push vs. Pull Strategies: Dealing with the On-Demand Market

AlexaCheater

Analog rabbit ears represent push strategies, streaming represents pull strategiesOur partner Celestica recently published the following article, ‘Staying Ahead of Today’s On-Demand Market: Push Versus Pull Strategies.’ The author, Robert Rejano, Processes and Applications Advisor, Celestia, discusses the key differences between push and pull strategies and their impact on the supply chain.

Rejano asks ‘So why does technology even matter when supply chain principles haven’t really changed in decades?” We explore the answer.

You can start the show… whenever you’re ready

Using an interesting analogy centered on the rapidly changing television industry, Rejano suggests push strategies are akin to old analog rabbit ears – you can watch the programs you’re interested in, but only when the network decides to air them. Pull strategies are more like today’s on-demand options. Think digital video recording (DVR) and online streaming. They allow you to choose what you want to watch, and when you want to watch it.

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Is Poor Inventory Performance Holding You Back?

AlexaCheater

A man reviewing inventory performance on a computerOur partner Celestica recently published the following article, ‘Is your company being held hostage by poor inventory performance?’ The authors, Anandhi Narayanan, Senior Manager, Advanced Customer Solutions, Charles Thomas, Director, IT Customer Solutions, Stacey Greene, Director of Inventory Optimization and Robert Rejano, Processes and Applications Advisor, all with Celestica, describe the critical steps needed to drive inventory performance improvements.

Poor inventory performance can create a significant obstacle to growth and profitability. But adopting a strategic methodology designed specifically for inventory transformation can help eliminate the obstacles caused by poor supply chain visibility and open up new opportunities. If you’re looking to increase your inventory performance, we’ve outlined Celestica’s key suggestions and how they helped one company see substantial results.

Establish an executive focus and a transformation team to support it

Like any ‘transformational’ initiative, the process of improving inventory performance begins with understanding the compelling reasons for change. Once urgency is established, building the guiding team, establishing a vision and outlining goals are critical to winning over key stakeholders.

Make it Visible – You can’t improve it if you can’t measure it

Successfully increasing your inventory performance requires integration of data from all sources that make up your supply chain network. It’s critical to create a framework for the data that translates it into one clear body of information. Once this happens, data can then be analyzed in detail. To move from ‘basic analytics’, which gives insight into how the supply chain has operated in the past and what is required for the present and future, to ‘advanced analytics’, requires data to be contextualized in a way that makes it useful at the time when operators need to make a decision.

Flexible data models and methods to extract and load data are essential. The key to achieving meaningful results is a centralized data hub where normalization, standardization and storing of data can be performed. This allows the team to quickly develop and modify data models, without relying on multiple outside parties.

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Do your supply chain challenges have you feeling a little snowed under?

AndrewDunbar

A snowed in car represents challenges weather can create for supply chainsThe first day of spring is less than a week away but the Canadian winter is still wreaking havoc on local supply chains.

A friend of mine wrote off his beloved Mazda 3 last month after being rear-ended on a snowy country road outside of Ottawa. This unfortunate event kick-started an urgent need for a replacement vehicle that would fit his growing family and replace the car he’d loved for longer than he’d even known his three children. His wife, demonstrating both her love and a generous dose of pity for her grief-stricken husband, agreed to let him upgrade to a brand new Audi Q3. “Don’t worry my friend, the car of your dreams will be here soon. It’s already on a ship to Halifax!” assured the sales rep.

Now five weeks late, my friend’s wife is still driving him to work and her pity has all but evaporated. What went wrong you ask? It’s hard to believe, but the ‘car of his dreams’ is currently frozen to the ground at CN Rail’s Eastern Passage Autoport.

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Best of the Best Supply Chain Blog Posts of 2014

MelissaClow

best of the best supply chain blog-posts

As you take time over the holidays to sit back and reflect, here are the top ten excerpts from the best of the best posts on the Kinaxis supply chain blog. They touch on hot topics and industry trends discussed over the past year, so grab a coffee (or a spiked eggnog) and enjoy! We look forward to continuing the conversation in the New Year.

#1 “And much as we have had to rethink the first applications that were simply a digitization of a paper-based paradigm, we need to rethink how we structure our organizations and get work done to get maximum utility out of the digital world.”
FROM SMAC in the Middle of Supply Chain Change

#2 “Visibility is losing its clarity.”
FROM Visibility is Losing Its Clarity

#3 “The ‘ah-ha’ moments are the catalyst to innovation.”
FROM “Storage Wars” Rescues Supply Chain Ignominy

#4 “Many companies have several instances of ERP, each deployed differently. Despite many moving to a single instance of ERP there are still many ‘shadow IT’ required to do what the core ERP solution cannot. And then there is the planning layer, which is even less harmonized or standardized. Most business people consider this an IT problem. Guess what? It isn’t going away until the business makes solving the data issue their issue.”
FROM Gartner Supply Chain Leaders Conference – What Will Be Hot?

#5 “Tell me if you’ve heard this one before. Your company has implemented an S&OP process. At first it showed some promise, but now it has turned into a blamefest, attended – if at all – by lower level representatives that aren’t empowered to make decisions.”
FROM Poorly Executed or Non-Existent S&OP Is Costing Your Supply Chain Money

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The Supply Chain “Change” Dilemma!

PrasadSatyavolu

Trevor Miles and I have been having a healthy discussion on the Internet of Things and how these technology changes are shaping the way we work.

This is part 4 in our Internet of Things Series: The Supply “Change” dilemma!

A few weeks ago, Charles Wehlage wrote a blog post on his take on The Innovators Dilemma. I thought his analogies with supply chain strategy and execution were spot on. In this piece, Clayton Christensen specifically focused on why organizations fail. And not just any organization, but the great ones! The key learning is that the individuals who as a team have just witnessed a big win as a result of a hard worked strategy are highly likely to miss the budding wave of disruptive forces and be ready for the next change.

My own experiences witsupply change dilemna Svyantek DeShon System interface and hierarchy of effortsh different large scale transformations certainly point to this valid the hypothesis. An organization’s capability to sustain its innovative streak is largely dependent on the organizational “software” a.k.a. human resource + DNA. Therefore, the dilemma is how to synchronize the “social dynamics” within an organization and lead continuous change as digital technologies evolve and their adoption is a necessity.

The graphic from Svyantek and DeShon’s thoughts on “System interface and hierarchy of efforts required for change in an organization” illustrates the complexity of change. Organizational software comes before process and technology.

 

supply change dilemna organizations as machine or living system

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