Posts categorized as 'Inventory management'

Lessons in product transition and supply constraints, via adidas

HarishIyer

One of the scary supply chain campfire stories I like to tell is of the CEO who stands in front of Wall Street to explain a revenue miss due to lack of visibility into the inner workings of its supply chain. A real-life version of which was recently lived by adidas.

During its annual earnings call, adidas CEO Kasper Rorsted explained to investors that the company’s slow sales growth in North America was attributed to supply issues as the company expands from high-end products into a mid-price range. According to Rorsted the volume increased faster than anticipated, and they didn’t respond quickly enough to the demand signal.

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Regaining control: Inventory management best practices (Part four)

RichardCushing

Regaining control: Inventory management best practices (Part four)In part one of my inventory management best practices series I argue that inventory cannot be managed until it is controlled, and present the notion our general willingness to apportion blame upon unreliable data from enterprise resource planning (ERP) systems is misplaced.

This isn’t because the ERP system is flawed. Further investigation reveals that external forces—controllable forces—exert influence upon the system, skewing data to a point at which it becomes unreliable.

In the final part of my inventory management best practices series, I take a look at some additional practices that are important, or even crucial, to successful supply chain efforts.

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Regaining control: Inventory management best practices (Part three)

RichardCushing

Regaining control: Inventory management best practices (Part three)In part one and part two of “Regaining control: Inventory management best practices”, we talked about controlling inventory, before being able to competently manage inventory.

Here in part three, we’ll explore what other important supply chain inventory management best practices.

This time around, we make specific recommendations on units of measure, the importance of repacking and resealing, and value of dedicating time to cycle counts.

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Regaining control: Inventory management best practices (Part two)

RichardCushing

Regaining control: Inventory management best practices (Part two)

In part one of “Regaining control: Inventory management best practices,” Kinaxis guest blogger Richard Cushing talked about the fundamentals of controlling inventory and why it’s vital to have before being able to competently manage inventory.

With that in mind, Cushing outlines additional inventory management best practices in part two of his four part series.

From part numbers and labeling to being strategic about the location of your warehouses, getting organized will help you better manage your assets and regain control of your supply chain.

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How vehicle customization will drive the supply chain of the future

DustinMattison

How vehicle customization will drive the supply chain of the futureI recently had the opportunity to sit down with Farhan Mirza, President of BAFF Consultants Inc., to discuss vehicle customization by original equipment manufacturer (OEM) automakers and its impact on the supply chain of the future.

Mirza notes that customization is a significant market trend and believes the entire supply chain will require transformation as the customization of vehicles becomes a mainstream approach to production.

In the interview, Mirza introduces some of the supply chain challenges which will need to be addressed to reap the profit potential.

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Regaining control: Inventory management best practices (Part one)

RichardCushing

Inventory management best practices - part oneIt happens to be axiomatic that you cannot manage your inventory if you do not control your inventory.

Many times, I have been told, “Our people just don’t trust the numbers they see in the enterprise resource planning (ERP) system. Everything has to be double-checked.”

Usually, this statement is followed by some negative comment about the ERP system being unreliable.

After digging around a bit, more of the true picture emerges. The numbers (read: quantities) in the ERP system aren’t reliable because, while the company is busy “managing” its inventory, it has pretty much neglected the matter of “controlling” their inventory.

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Indiana Jones and the supply chain bullwhip effect

JoeCannata

Indiana Jones and the supply chain bullwhip effectAccording to the European Journal of Operational Research, the term ‘bullwhip effect’ was first coined by Procter & Gamble (P&G) in the 1990s in reference to the order variance amplification phenomenon observed between P&G and its suppliers.”

A small shift in customer demand essentially cracks the whip, and the further a supplier is from the demand, the more significant the impact, which inevitably leads to increasing swings in inventory for suppliers.

This question of demand management led me to wonder if any bullwhip manufacturer or supplier ever ran into a situation that caused them to experience the bullwhip effect in their own supply chains.

How ironic would that be?

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

JeswinPhilip

vendor-managed inventoryThe 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. It’s a prediction that shouldn’t be ignored.

Food for thought: Time for a different kind of supply chain

Continued economic growth, customer preferences (especially those of the millennial generation), the rise of ecommerce and the Amazon channel, increased product choices and newer product categories in the marketplace are all driving the need for efficient and effective supply chain networks to support customer demand.

Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs.

As with any industry, food and beverage faces its own unique set of supply chain challenges, including:

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