Warehousing Maturity February 15, 2006
Posted by Lawrence Loucka in : Consulting, Logistics , add a comment
Recently a supply chain executive asked me to rate his warehousing operations. “OK, on what scale?” I said, trying to be honest and at the same time not insult this hardworking leader. Here’s what we came up with:
Level 1: Transactional / Reacting - inventory record accuracy, receiving, putaway, pick and pack, shipping
Level 2: Productivity - integrated RF barcode, pick waves, ASN’s, returns management
Level 3: Integration - cross docking, value-added services, global supply chain inventory visibility, transportation management, analytics
Level 4: Demand / Supply Chain - postponement, pull replenishment, merge-in-transit, VMI, customer collaboration, supplier collaboration, supply chain transparency, advanced demand data
Many operations I’ve visited over the past few years are operating at Level Zero; poor inventory accuracy, chronic treasure hunts and fire drills, low inventory turns, high excess and obsolete inventory. Warehousing operations are rarely the cause and often the victim of the lack of a holistic and systemic view of supply chain operations.
My supply chain executive was relieved to hear that his operations were better than most, but disappointed to realize that there was still a long way to go on the journey.
Inventory and Demand Analysis February 12, 2006
Posted by Lawrence Loucka in : Lean Sigma, Logistics, Supply Chain , 2commentsABC Analysis can be used to assign the appropriate level of control and review frequency based on the annual dollar volume of each item. Classical ABC Inventory Analysis places:
- greater expenditure on supplier development for A items than for B or C items
- tighter physical control on A items than on B and C; cycle counting A items more frequently than C
- greater expenditure on forecasting A items than on B or C
- different replenishment or order policies for A items than on B or C
C items are often handled with simple techniques of min/max or reorder point. Some practitioners make the mistake of trying to apply kanban to either A or C items. What is missing is an understanding of demand linearity (or demand variability). ABC Analysis is typically based strictly on volume, or annual value. This approach would then treat both very predicable and highly volatile A items in the same manner. But one size doesn’t fit all… What’s missing is a little statistical understanding of the item demand pattern. Does consumption happen smoothly and regularly or are there big spikes in demand? When you take the standard deviation of the demand history and plot it against volume you get a demand segmentation like so … 
Supply Chain Atlanta Roundtable January 22, 2006
Posted by Lawrence Loucka in : Logistics, Supply Chain , add a commentAmerican Society of Transportation & Logistic and Supply Chain Atlanta Roundtable panel discussion with top industry specialist Chris Barnes, Mike Cutone & Stephanie Harper. American Iinternational University @ Dunwoody will host a lunch and learn session on January 27 about the future of logistics and transportation in Atlanta in conjunction with Supply Chain Atlanta. The lunch will include a panel discussion of networking and job search “how to’s” for the supply chain professional. In addition to learning where networking happens around Atlanta, what employers are seeking today and industry trends, discussions will also center around efforts to bring more logistics companies to Atlanta in order to bring additional jobs and revenue to the area as well as updates on the Atlanta Chapter of the American Society of Transportation and Logistics. (more…)
Lean Logistics-Understanding January 20, 2006
Posted by Lawrence Loucka in : Lean, Lean Sigma, Logistics, Sigma, Supply Chain , add a comment Thomas CraigExpert Author Published: 2006-01-20 Lean Logistics-Understanding - WebProNews |
Supply chain management was designed to take waste out of supply chains-waste as to excess inventory, time and cost.
Supply chains are meant to pull, not push, inventory through the supply chain. This is exactly what lean logistics is also about-removing waste and variation from supply chains; it is what Kanban, Pull, is about with Lean Logistics.
Wholesalers, manufacturers, retailers, distributors, suppliers, 3PLs and every party involved in the supply chain feel the pressure to reduce and balance cost, time and inventory-to be lean. This is true with domestic supply chains; but it is especially true with global supply chains.
Supply Chain Soup January 3, 2006
Posted by Lawrence Loucka in : Consulting, Logistics, Supply Chain , add a comment
Trying to replace one soup can in the middle of a display can lead to disaster. If you decide to change the display’s configuration you may have to unstack can by can - starting at the top to avoid destroying the whole. A supply chain isn’t a simple stack of cans. A supply chain is a dynamic system that has to keep functioning while you change it. Improving a supply chain is less like rearranging a display and more like changing a truck tire while speeding down a twisty road at night while talking on your cell phone. Except the supply chain isn’t something simple like a piece of machinery. It’s filled with messy things called people. Before you set out to change a supply chain you need a play book, a plan of attack. Continuous Improvement is the business transformation management practice every leader needs to master.