Archive for Inventory Management – Page 2

Warehouse Automation Makes e-Commerce Viable

In 2012, Amazon spent $775 million to acquire Kiva Systems, a distribution center robotics developer with about $100 million in revenues. Yes, that is a valuation multiple of seven times revenues. This is the most succinct way I can express the importance of warehouse automation to the e-commerce channel. ARC is currently producing a market outlook study on the global warehouse automation & control market. This research project evolved from our interest in the evolution […]

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“We Want Our CEO Back!” – A New Supply Chain Disruption

Supply chain disruptions are not a new thing. I’ve written about them quite a bit this year, whether they were due to bad weather, political unrest, driver shortages, or faulty equipment. And we’ve certainly seen supply chain disruptions due to employee strikes or walk-outs. These incidents are usually due to what employees feel are unfair wages, benefits, or working conditions. Well Demoulas Market Basket has a new one: they want their CEO back. Demoulas Super […]

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Guest Commentary: Predictive Replenishment and How It Optimizes Global Supply Chains

Leading consumer goods companies are adopting a breakthrough methodology, Predictive Replenishment, which generates value by integrating strategic, tactical and operational processes. This supply chain planning approach encompasses three functional areas: Strategic: Supply Chain Network Design that continuously adapts and links products flows to downstream processes Tactical: Demand Sensing and Inventory Optimization that predicts customer requirements based on market-driven demand signals and POS data Operational: Order Fulfillment and Transportation Planning that can create perfect orders and […]

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This Week in Logistics News (September 23-27, 2013)

Tuesday night, I went to Staples with my daughter to buy some printer ink. She was immediately attracted to a colorful display, which caught my attention too. I took a picture of it and shared it on Twitter, which became my most popular tweet of the week:  3D printer and supplies at #Staples. The future is coming faster and faster. #3DPrinting #SCM #logistics pic.twitter.com/S4tGkRxR5u — Adrian Gonzalez (@talkinlogistics) September 24, 2013 Yes, the future is […]

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Guest Commentary: The Advent of the 4PL Model in Upstream Oil and Gas

Over the past few years, fuel production in the United States has seen a marked increase, largely due to the widespread adoption of hydraulic fracturing, or fracking, whereby pockets of natural gas and crude oil trapped deep in the shale layer far below the earth’s surface are extracted via a horizontal drilled well. During the extraction process, the lower, horizontal portion of the well is perforated and flushed with millions of gallons of fracking fluid, […]

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Kraft’s Approach to Cutting Inventory Across the Extended Supply Chain

In a previous posting, I wrote about how Kraft leverages downstream data to drive supply chain collaboration, based on a talk given by Ron Volpe, Customer VP of Supply Chain at Kraft Foods, at the CSCMP Annual Global Conference last September. In that article, I briefly mentioned that Kraft has truly audacious inventory reduction goals, which is what I want to focus on today. Kraft’s goal is to reduce its extended supply chain inventory down […]

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Robots and the Future of Retail and Logistics Jobs

The new inventory manager at the Carnegie Mellon University campus store is short, likes to wear hooded sweatshirts, and doesn’t talk much. And he’s a robot. As reported in a recent MIT Technology Review article, the robot called AndyVision “scans the shelves to generate a real-time interactive map of the store, which customers can browse via an in-store screen. At the same time, the robot performs a detailed inventory check, identifying each item on the […]

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Guest Commentary: Mining More Profits From Your Inventory

Every business wants the highest yield or gross margin return on investment possible for its inventory dollar. Whether you’re in retail or wholesale, inventory is often the single largest, continuous investment you make and the ultimate goal is to make that investment work for you. But what is the right approach? For example, you ship to your stores two times per week—is that the best schedule? Or you need six units on hand to make […]

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Guest Commentary: Safety Stock Helps Buffer Against Variability in the Supply Chain

Every supply chain is rife with variability and uncertainty. This adds costs, problems with customers, and headaches and firefighting for supply chain managers. Safety stock plays a critical role in a helping you run a good supply chain despite the inherent variability and uncertainty. Safety stock allows you to seamlessly meet unpredictable spikes in demand, and it allows you to protect your customers from production breakdowns, supplier failures, or unusually long shipment times. Safety stock […]

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Guest Commentary: Increasing Profits by Lowering the Cost of Goods Sold

Through June of this year, the inflation rate in the US has been trending sharply upward. If the trend continues we could be on track to experience the highest rate of inflation so far this century. This is not news to consumers who are faced with inflation daily as they go to the gas station or shop for groceries. They know full well that non-discretionary items like gasoline, dairy and grain-related products have steadily gotten […]

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