Thursday, June 21, 2012

Warehousing: What is In, What is Out

The results are out!

Warehouse Education and Resources Council (WERC) has presented their annual report for 2012 on DC metrics at their conference in Atlanta. The report is based on a survey where the respondents represent a broad range of industries and warehousing needs. What is in? On-time shipments, average warehouse capacity used, and order picking accuracy are the top three metrics. What is out? Annual workforce turnover, line-fill rate, and percent of damage-free supplier orders fell to the bottom of the list.

Read more at Supply Chain Digest. Or get your copy at WERC.

Wednesday, June 6, 2012

Business Strategy Must Drive Supply Chains

imageIf you had to decide what supply chain capabilities your company should build to create advantage, what would they be? We are all familiar with constantly juggling the conflicting goals of minimizing inventory while establishing the highest service levels, reducing labor while increasing throughput, and reducing supply costs while maintaining stable supplies. We know that a supply chain that is integrated with the rest of the business functions, that senses changes, adapts, optimizes, and works within the context of the larger business strategy without any conflicts would be great. What we grapple with is how a supply chain strategy can be created that is not only aligned, but actually enhances the business strategy. This is not a theoretical discussion: Pioneering companies must continuously evolve their supply chains to create capabilities mandated by their business strategy to create competitive advantages. The failure to do so can be fatal.

Friday, June 1, 2012

Is Your Supply Chain Effective?

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You may have spent a fortune in establishing good processes and implementing technology solutions to automate and enable them. So, now do you have an effective supply chain? How do you know when you do? What is an effective supply chain anyway? Is it the ability to quickly react to volatile demand? Is it the ability
to maintain the highest inventory turnover in the industry? Does it mean
having the lowest days of accounts receivable? What about accounts payable?
Shortest cash-to-cash cycle? Highest ROA? Agility? Lean manufacturing?
Optimal product mix? Highest resource utilization?