Warehousing and Distribution
Article | July 17, 2023
Risk management has been a problem for as long as supply chains have existed. Because of the interdependence of all its connections, even a minor issue in one isolated region has the potential to jeopardize a whole global supply chain. As a result, when major global trends and events occur, the potential for widespread supply chain disruption is enormous.
Global supply chain risks and market disruptions have reached an all-time high. The most notable of them is the COVID-19 pandemic. In a 2020 survey, the Institute for Supply Management discovered that 95% of companies faced operational issues due to the pandemic. As a result, business executives all around the globe believe that if they want to be more resilient and competitive in the present market, they need to modernize and make significant changes to their supply chain strategy.
Other recent factors that have had a significant impact on traditional supply chain practices include the fast pace of change in consumer behaviors and a pretty unstable trade and political environment.
In the last ten years, e-commerce spending has tripled, and internet shopping had increased by 149% in 2020 compared to the previous year. With the growth of e-commerce, there has been a rise in customer demand for faster delivery and more personalized shopping experiences. The Amazon Effect refers to the growing expectation for same-day delivery and its effect on businesses and logistical networks. To be resilient enough to react to these rising demands, supply chain managers have had to make fast and significant modifications to their logistics and warehousing networks, as well as discover new ways to collaborate with third-party fulfillment partners.
Even before the impact of COVID-19, American businesses were attempting to reduce their dependence on foreign manufacturers and suppliers. Foreign tariffs and trade policies had become more unpredictable by 2019, and businesses were seeking technological solutions to make the supply chains more self-sufficient and resilient. As a result, integrating digital transformation and Industry 4.0 technology into supply chain operations is quickly becoming a top concern for global business leaders.
How does Supply Chain Resilience Work?
A flexible contingency plan and the ability to react swiftly to operational disruptions are important characteristics of effective supply chain management. However, to be truly resilient, a supply chain must be able to predict and anticipate disruptions and, in many cases, avoid them entirely.
Strategic supply chain planning is an important step in achieving resilience because it synchronizes all supply chain components and increases visibility and agility. Supply and demand needs are better understood, and production is synchronized due to supply chain planning. This integrated, forward-thinking approach assists businesses in better anticipating problems, reducing the impact of supply chain disruptions, and improving overall operations.
When a business has the digital systems to analyze and make sense of Big Data, it significantly improves supply chain resilience. Artificial intelligence-enabled systems can curate disparate data sets from across the business and the globe. To discover trends and opportunities, news, competitor activity, sales reports, and even customer feedback can be examined together. The system's connected devices are constantly monitored, providing real-time insights about where and how processes can be automated and improved. For instance, AI, machine learning, and modern databases acquire and handle Big Data and analyze and learn from it in an almost infinite number of ways. This enables intelligent automation across the network and provides supply chain managers with the real-time insights they require to respond quickly to disruption and unexpected events.
Supply chain managers have traditionally sought to limit the number of partners and suppliers in their network to minimize operational and logistical complexity. This approach is based on the stability of the social, environmental, and political systems. Unexpected disruptions in one region can slow or even stop network operations across the board. Supply chain resilience technologies, such as blockchain, sensors, and advanced analytics, enable supply chain managers to monitor complex partnerships and supplier contracts even in the most remote parts of their network.
Profitability in the supply chain has always been dependent on minimizing excess and keeping inventories as lean as possible. Capacity and inventory buffers are expensive, and supply chain managers have often bet against disruptions to keep prices low. When the pandemic struck, many businesses discovered the real cost of the gamble. Supply chain operations can involve on-demand manufacturing, virtual inventories, and predictive demand forecasting using digital supply chain technologies to remain resilient, even in times of unexpected disruption.
Benefits of a Resilient Supply Chain
Finding a successful balance between supply and demand is a significant issue for any supply chain manager in an increasingly competitive market. Many businesses that have cut costs on diversification, supply chain technology, and other resilience measures have lately discovered the true cost of those choices. However, when businesses engage in diversification, supply chain technologies, and other resilience measures, they can achieve a variety of business benefits, including:
More efficient operations: Better resilience often results in less risk and a greater capacity to invest in innovation and growth. For example, according to a 2020 global business analysis conducted by Bain and Company, businesses that prioritized their investment in supply chain resilience had up to 60% quicker product development cycles and were able to increase production capacity by up to 25%.
Enhanced productivity: Resilient supply chain solutions lead to the overall system increased productivity. According to a McKinsey 2020 survey, supply chain leaders from across the world report increased productivity due to resilient supply chain systems, and 93% of those surveyed plan to prioritize resilient supply chain strategies for investment in the next year.
Risk reduction: Supply chain activities are often the most vulnerable to risk and loss in many businesses. Supply chains, by nature, are geographically distributed and functionally complex. As a result, supply chains are particularly vulnerable to risk. Resilient supply chain technologies minimize risk by providing insight into all network operations and enabling companies to improve and adjust their processes and logistics in real-time.
Technologies for an Agile Supply Chain
Digital transformation and modern supply chain technology provide businesses with the resilience and competitive advantage they need to react swiftly to disruptions and opportunities.
Artificial intelligence (AI): AI-powered supply chain systems can offer deep procedural and operational insights by gathering and analyzing data from many sources. Predictive analytics and Big Data analysis can assist in predicting risk and demand and recommending measures and reactions in the company.
Machine learning: Machine learning enables the discovery of patterns in supply chain data and the identification of these influential factors - all while constantly learning. This enables supply chain managers to react fast with the finest workflows and operational strategies available.
Industrial Internet of Things (IIoT): The IIoT network in a supply chain comprises connected devices and objects with sensors and unique IDs that allow them to transmit and receive digital data. They collect information and communicate with the central system. AI can analyze and understand this data to enable quick decisions and intelligent automation of supply chain operations and procedures.
Additive (3D) printing: Smart factories can quickly reprogram 3D printers to produce specific products on-demand without disrupting regular business operations in the long run. The accessibility of potential virtual inventories enables supply chains to defend themselves against disruption.
Robots and autonomous things: Robots and drones, which are intelligently automated for speed, efficiency, and accuracy, can adapt their operations on the go to meet quickly changing requirements. They also reduce the risk of harm by eliminating overly repetitive or dangerous tasks from human workers.
Modern databases: The resilient supply chain solutions rely on Big Data, advanced analytics, and real-time insights from modern databases. Supply chain technology can be improved to operate faster and most resilient when equipped with a modern ERP system and an in-memory database.
Resilience means more than just surviving a disruption in operations. A fully resilient supply chain and businesses survive hardship and use it to innovate and improve their business. Building a resilient supply chain is very important in this modern era because disruptions like a pandemic, wars, climate change, etc., are occurring a lot these days. A resilient supply chain helps businesses to survive and thrive even during tough times. To read more about ways to boost supply chain performance, click here.
FAQ
What is supply chain resilience?
Supply chain resilience refers to the supply chain's capacity to be prepared for unexpected risk events, react and recover swiftly to potential disruptions, and grow by shifting to a new, more desirable state in order to improve customer service, market share, and financial performance.
How is supply chain resilience measured?
A supply chain's resilience index is calculated by aggregating its company's resilience index. Given that supply chain company's performance influences overall supply chain performance, supply chain resilience should be measured using the companies' resilience index.
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Supply Chain
Article | May 22, 2023
Enhance operational efficiency by implementing industry-approved methods for multi-channel inventory management. Taking a holistic approach to control inventory helps multiple sales channels grow.
Multi-channel inventory management is a crucial aspect of the supply chain process that ensures the goods are available to customers through different sales channels. However, with growing penetration of ecommerce technologies and the increasing complexity of supply chain networks, managing inventory across multiple channels has become daunting for businesses. The ability to accurately track inventory levels, ensure stock availability across channels, and optimize fulfillment processes has become critical to achieve success in today's competitive business landscape.
Managing inventory across multiple channels require real-time visibility and tracking of inventory levels which further streamlines the complex process. Inaccurate inventory data can lead to stockouts, overstocking, and lost sales, negatively impacting the business's bottom line. To combat these challenges, businesses must implement a robust multi-channel inventory management system to track inventory across all channels, synchronize stock levels, and automate order fulfillment processes.
An inventory management system can offer businesses a consolidated view of inventory at various locations, such as warehouses, stores, and even online channels. An organized approach is crucial while managing multi-channel inventory or keeping track of moving inventory. Implementing an effective inventory management procedure, managing multi-channel inventory becomes more streamlined and simplified, as well as provides a comprehensive overview.
In addition, as businesses continue to expand their sales channels, multi-channel inventory management has become a vital component of supply chain management. By adopting best practices in multi-channel inventory management, businesses can ensure on-demand access, accurate inventory data, and seamless order fulfilment processes. Additionally, implementing the right procedures will allow organizations to observe an increase in customer satisfaction and experience significant business growth.
The article takes an in-depth look at key benefits, potential challenges, procedural considerations, and the significance of multi-channel inventory management. It delves into the impact of this approach on supply chain performance while providing valuable insights into best practices.
1. Centralize Inventory Management Process
Centralizing multi-channel inventory helps manage supply chain businesses across various channels and locations. Businesses can gain better visibility and control over their inventory processes by consolidating inventory data. However, centralizing inventory management is not without its challenges. One of the major obstacles faced by organizations is ensuring the accuracy and consistency of data across different locations and channels.
Another barrier is integrating various inventory management tools and technologies into a single system. Despite these challenges, centralizing inventory management offers significant benefits, including improved efficiency and reduced costs. In addition, businesses can leverage cloud-based inventory management software and standard operating procedures to centralize and optimize inventory management processes effectively.
2. Adopt Lean Inventory Management Approach
The lean inventory management approach is adequate for managing multi-channel inventory in supply chain businesses. This approach involves reducing excess inventory and only stocking items in demand. While implementation of the approach is complex due to the need for accurate demand forecasting and inventory tracking, it offers multiple advantages, such as reduced inventory carrying costs, improved cash flow, and increased customer satisfaction. To implement a lean inventory management approach in the supply chain business, follow these steps:
Conduct inventory analysis
Categorize items based on value and demand
Implement just-in-time (JIT) replenishment
Leverage forecasting tools
Establish cycle counting and monitoring procedures
Strive for continuous process improvement
This approach helps businesses achieve better inventory accuracy, increase operational agility, and meet customer demands across multiple channels.
3. Utilize ABC Inventory Analysis
ABC inventory analysis is a widely used best practice for multi-channel inventory management in the supply chain. This method categorizes inventory based on its level of importance to the business. ABC inventory analysis categorizes goods into A, B, and C categories based on their impact on overall inventory cost. Category A consists of the most valuable products, category B includes items that fall in between, and category C covers small transactions that are vital for overall profit but have less individual impact. Supply chain businesses can prioritize their resources and make informed decisions by focusing on high-value inventory.
However, implementing this method can be challenging, especially when dealing with extensive inventory data. To successfully address challenges associated with implementing ABC inventory analysis for multi-channel inventory management, businesses must focus on accurate data classification, utilization of advanced analytics tools, and fostering effective team collaboration.
4. Optimize Order Management Process
Optimizing order management involves automating and streamlining order fulfilment for efficient and accurate processing across sales channels. The process ensures optimal inventory control, minimizes fulfilment time, and enhances customer satisfaction, providing a competitive advantage. Aligning inventory levels with actual demand prevents overstocking and reduces holding costs. Additionally, businesses can efficiently allocate inventory from various sources to fulfil orders, reducing the need for excess storage and transportation. The optimization is achieved by adopting automation, system integration, and data analysis. In addition, comprehensive multi-channel order management system offers multiple benefits, including native e-commerce integrations, flexible order fulfilment options, multi-location inventory management, integrated POS capabilities, data-driven inventory planning, and workflow automation, among others.
5. Integrate Sales Channels
Integrating sales channels provides businesses with a unified view of inventory, sales, and customer data, enabling informed decision-making based on real-time information. It helps accurately track products across channels as well as adjust inventory levels based on individual selling rates. The process involves synchronizing channels through a centralized system, ensuring seamless data flow and consistent product information. It includes setting up API integrations, mapping inventory, and conducting thorough testing for smooth order processing. To implement the integration, businesses must utilize technology solutions like inventory management software and enterprise resource planning (ERP) systems. Additionally, it establishes clear communication channels among teams managing different sales channels.
6. Set Cross-Channel Metrics
Cross-channel metrics measure and analyze each sales channel's performance, including online & offline sales, and identify areas for improvement. To set cross-channel metrics for multi-channel inventory, businesses must identify relevant metrics, establish benchmarks, and regularly monitor and evaluate performance. Implementing cross-channel metrics allows businesses to make data-driven decisions based on actual performance rather than relying on assumptions or incomplete data. In addition, supply chain businesses can leverage technology solutions, such as cloud-based inventory management software, to manage and consolidate their data sources effectively. Enforcing cross-channel metrics in multi-channel inventory management helps overcome several challenges, such as lack of visibility across sales channels, difficulty in identifying slow-moving products, and inefficiencies in resource allocation.
7. Automate Supply chain
Automating the supply chain and implementing advanced software systems helps businesses to optimize supply chain processes. Automation reduces manual errors, enhances efficiency, and improves overall productivity. It enables real-time inventory tracking, seamless order processing, and accurate demand forecasting. Businesses can easily overcome manual inefficiencies, bottlenecks, and data discrepancies by automating the supply chain process. The process includes integration of automation tools like inventory management software, order management systems, and warehouse management systems. The systems integrate with sales channels, suppliers, and logistics partners to automate order processing, inventory tracking, and shipment management tasks. Ultimately, businesses achieve better inventory control, faster order fulfilment, and increased customer satisfaction by automating supply chain operations.
Final Thoughts
As the supply chain market evolves, businesses must adopt innovative approaches for multi-channel inventory management. Incorporating additional sales channels into conventional brick-and-mortar operations presents a valuable opportunity to expand customer reach, boost sales, and enhance the overall customer experience. To effectively implement multi-channel sales and inventory management within a retail organization, acquiring a robust retail management system capable of efficiently monitoring inventory levels and facilitating business growth becomes essential. The adoption of an effective system can assist businesses to ensure seamless inventory control and propel sustained success in the competitive market.
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Warehousing and Distribution
Article | June 27, 2023
Explore the techniques to improve warehousing and distribution centre. Learn from the best books of logistics and distribution management and enhance warehousing operations and distribution processes.
Efficient warehouse management is crucial in the complex world of distribution and logistics. With various warehouse types serving different purposes, warehouse managers are responsible for ensuring smooth operations, safeguarding valuable goods, and optimizing supply chain units. Building a strong knowledge base is key, and the best way to start is by delving into the top warehouse management books. This article presents a curated list of essential reads that will provide you with a solid foundation in the warehouse and distribution field. From understanding fundamentals to exploring cutting-edge practices, these books help in better decision-making regarding warehousing and distribution operations.
1. Fundamentals of Warehousing & Distribution
Author Name: Material Handling Industry
Fundamentals of Warehousing & Distribution is an essential book for professionals in the warehousing and distribution industry. Published as part of the MHI Career & Technical Education Program, this series of four warehouse management books provides comprehensive knowledge on material handling equipment, information technology tools, and warehouse operations. Volume 1 serves as a foundational guide, introducing readers to modern warehouses and distribution centers' equipment, processes, and operations. With its focus on practical knowledge and industry best practices, this warehouse and distribution book provides readers with the skills and expertise necessary for successful warehouse and distribution management.
2. Warehousing and Distribution Practices
Author Name: xu ji ying
Divided into two parts, Warehousing and Distribution Practices covers seven key areas of the real-world processes for managing storage and implementation of effective distribution strategies. This distribution management book focus on essential knowledge and skills, each section provides valuable insights through logistics standard terms, case studies, knowledge links, and practical application. As one of the best books on logistics and distribution management, it will give you the complete step-by-step guidance to expand and improve warehousing and distribution centre by leveraging the theory shared by xu ji ying.
3. Warehousing And Distribution Management Project Type Tutorial
Author Name: Wang Yu
Warehousing and Distribution Management Project Type Tutorial, a logistics and supply chain management book, revolutionize logistics education with its innovative approach. This comprehensive book goes beyond traditional teaching methods, immersing readers in real-world scenarios and practical projects. Through eleven immersive teaching projects and thirty-two dynamic learning tasks, readers gain hands-on experience in system planning, business management, quality control, inventory operations, technology application, and more. Developed in collaboration with industry experts, this tutorial bridges the gap between theory and practice, empowering logistics professionals to navigate the complexities of warehouse and distribution management. With its unique project-based structure, this warehousing and distribution book delivers a transformative learning experience for aspiring logistics and supply chain industry leaders.
4. Fundamentals of Warehousing & Distribution: Volume 3
Author Name: MHI
Fundamentals of Warehousing & Distribution, a logistics and supply chain management book revolutionizes how logistics professionals perceive warehouses. By delving into captivating case study examples, this book unveils the intricacies of different warehouse configurations, showcasing how cutting-edge equipment and technologies empower diverse order fulfilment strategies. It challenges conventional wisdom by emphasizing that warehouses are no longer mere storage spaces; they have transformed into dynamic hubs that efficiently cater to a wide range of order types, from bulk shipments to individual products. With its ground-breaking insights and practical applications, this volume is a game-changer for industry experts seeking to elevate their warehousing and distribution management skills.
5. Warehouse Distribution and Operations Handbook
Author Name: David Mulcahy
Optimize warehouse operations with this warehouse and distribution management book, Warehouse Distribution and Operations Handbook. With a focus on improving inventory management, reducing costs and enhancing customer experiences, this handbook offers best practices, methods, equipment applications and technologies to utilize in different warehouse and distribution centres. Whether it's industrial, mail-order, or retail facilities, this comprehensive logistics and distribution management book provides the knowledge and strategies to drive profitability and control assets. It is an essential resource for anyone in the logistics industry looking to master distribution management and excel in warehouse operations.
6. Warehouse and Distribution Centre
Author and Editor Name: Robert Mulder & Michiel Kobussen
The warehouse and Distribution Centre is a valuable resource for logistics professionals and architects navigating the evolving landscape of warehouse design. This distribution management book addresses designers' pressing challenges, including cost control, technical requirements, and safety considerations. It offers a comprehensive system of theories, guidelines, and design standards, accompanied by a diverse collection of global warehouse and distribution centre projects. Balancing both the ends of practical reference and inspirational examples, this best book for distribution management equips readers with the knowledge and insights needed to create efficient, innovative, and sustainable warehouse and distribution solutions. It is a must-read for anyone involved in warehousing and distribution management.
7. Warehousing and Distribution Operation Practice
Author Name: peng jian cheng
Rooted in practical vocational education, Warehousing and Distribution Operation Practice is a book that emphasizes integrating theoretical knowledge with functional operations. It provides a hands-on approach to learning, enabling readers to apply their knowledge directly in real-world scenarios. This warehousing and distribution book will give you the required skills and expertise to optimize operational efficiency. With the help of practices shared by peng jian in the warehouse management book, readers will get insights into supply chain management and logistics operations. In addition, it will not only help in improving the processes in the warehouse and distribution but also enhance the overall business.
8. Operations and Supply Chain Management Essentials You Always Wanted to Know
Author Name: Vibrant Publishers & Ashley McDonough
Overcome the complexities of supply chain management and warehouse operations with Operations and Supply Chain Management Essentials You Always Wanted to Know. This engaging book takes you on a captivating journey through the interconnected world of logistics, unveiling the significance of every step in the process. Through a compelling narrative centred around a fictional company and its consumer product, you'll explore the challenges, decisions, and adaptations supply chain professionals face. Gain a deep understanding of supply chain operations, from disruptive forces to practical applications, and discover the importance of interactive business domains.
9. Start your Own Wholesale Distribution Business
Author Name: The Staff of Entrepreneur Media & Christopher Matthew Spencer
Embark on a lucrative journey in the distribution industry with 'Start Your Own Wholesale Distribution Business.' This comprehensive guide, crafted by the experts at Entrepreneur Media, equips you with the essential steps to establish a thriving wholesale operation from the comfort of your home. Discover the art of being an intermediary, connecting manufacturers and retailers to reap profits. Uncover industry-specific strategies, secure funding, identify profitable niches, forge valuable partnerships, and effectively market your business. With insights from experienced wholesale distributors, sample forms, checklists, and worksheets, this warehousing and distribution book is your roadmap to mastering the world of distribution and logistics.
10. Warehouse Management: The Definitive Guide to Improving Efficiency and Minimizing Costs in the Morden Warehouse
Author Name: Gwynne Richards
Discover one of the best books for logistics management in the modern era with 'Warehouse Management: The Definitive Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse.' This extensively updated fourth edition delves into the latest technologies, such as robotics, cobots, and AI, revolutionizing warehouse operations. Author Gwynne Richards offers expert insights and realistic solutions to optimize warehouse performance and improve efficiency. This effective distribution management book provides strategies and environmental initiatives to ensure a sustainable supply chain. Packed with real case studies and online resources, this book is an essential resource for distribution and logistics professionals.
Conclusion
Warehousing and distribution books have been a valuable resource for reference in the logistics field. While this compilation is not exhaustive, it offers a robust selection of warehouse management books that can effectively address various related challenges. Whether seeking insights into warehouse and transportation management or exploring other facets of supply chain management, logistics management, and procurement, the knowledge gained will be a worthwhile investment for future decision-making.
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Software and Technology, Supply Chain
Article | July 14, 2022
Autonomous robots have transitioned from a futuristic system that only a few enterprises could afford to a sustainable, well-established solution in a wide assortment of warehouse automation projects in recent years.
With the flourishing transportation and logistics industry and increasing e-commerce penetration worldwide, innovative technologies are revealing promising opportunities throughout the supply chain.
Warehouse Automation: Driving Value in the Supply Chain
Historically, autonomous robots have been used to perform tedious and repetitive tasks, necessitating sophisticated programming for setup and incorporation while lacking the dexterity to easily adjust operations.
As autonomous robots become more intelligent, their setup times decrease, they need less monitoring, and they are able to work alongside their human counterparts. The benefits for the future supply chain are increasing as autonomous robots become more capable of working day and night with more consistent levels of productivity and quality and performing tasks that individuals should not, cannot, or do not want to do.
Autonomous robots drive advancements and add value to the supply chain, primarily by increasing revenue potential and lowering direct and indirect operating costs. Autonomous robots, in particular, can assist:
Boost efficiency and productivity.
Lower risk, error frequency, and rework rates.
Enhance employee safety in high-risk workplaces.
Handle low-value, routine tasks so people can work together on strategic projects that can't be done by machines.
Raise revenue by optimizing order fulfillment rates, and delivery speed, and, ultimately, increasing customer satisfaction.
Sneak Peek into the Future of Autonomous Robot
Autonomous robots are expected to witness strong growth in the coming years. These robots will become more common in the future supply chain as technology advances, allowing them to operate with more human-like abilities. Improvements in haptic sensors, for example, will enable these robots to grasp objects varying from multi-surfaced metal assembly parts to fragile eggshells without requiring changes to robotic components or programming. This will encourage companies operating in the industry to increase their research and development activities and introduce innovative and advanced supply chain technologies.
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