Inventory Turns
Productivity Constructs was presented with a challenge: sales were growing, but inventory was growing
faster; new SKUs were in the pipeline but obsolete ones were still in the warehouse; the
warehouse was running out of storage space, but the lease had years to run.
Productivity Constructs found the solution: focus on improvement in inventory turns. By reducing
months of supply of slow moving SKUS, staging inventory at vendors’ warehouses, and
speeding up inbound transit for fast moving SKUs. The result: turns are up 30%, sales are
growing faster than before, and warehouse inventory has leveled off.
Global Supply Chains
In the game of the head-to-head supply chain competition and global delivery capabilities, third
party logistics (3PL) providers are differentiating their services from the status quo . Over the
past few years, 3PL's have carved out new, sophisticated services that go beyond inventory
management, shipping reports and package drop off. They are mining visibility systems for
trends; designing complicated multi-mode, multilane and multi-shipping partner networks;
coordinating merge-in transit programs; and even financing supply chain activities.
Savings have proven substantial (up to 25%) for organizations willing to throw 3PLs the ball and
reevaluate their existing service-level agreements. The bulk of those cost reductions would
come in the form of site optimization, improved efficiencies, and better inventory holdings
strategies.
Productivity Constructs can help your organization determine if your present operating practices are
keeping pace with the rate of global change. For more information, call Ed Knab at
714-639-4365.
Global Trade Management
The US security initiative known as the Customs-Trade Partnership Against Terrorism
(C-TPAT) was introduced as a voluntary participation program for shippers, carriers, brokers,
forwarders and related parties; however, non-participation and failure to meet its requirements
can expose companies to severe competitive disadvantage resulting in delays in clearing
shipments through customs. Similarly, in Europe the concept of authorized economic operator
(AEO) will give preferential treatment to voluntary participants. Many trade experts are
predicting that C-TPAT will eventually become law and the standard operating procedure for
international commerce in the USA.
The same sort of evolution is happening across the global arena as governments and
multinational organizations recognize the importance of having a standardized method of
procedure of global trade management (GTM). The evolution of this protocol integrates "best
practices" as it adjusts to nationalistic regulatory constraints and supply chain realities. Many
multinational organizations have initiated GTM projects which include; the globalization and
harmonization of customs rules and processes, reduced reliance on brokers to mitigate the
compliance risk, globally consistent trade documents to eliminate errors, and the ability to
electronically share supply chain information with trading partners.
Is your organization taking a lean approach to increasing warehouse productivity and
inventory velocity across your global supply chain? This lean methodology is designed to
reduce overall cost and to increase the speed of products through the supply chain. If you are
interested in implementing a continuous improvement program in this area contact Ed Knab at
714 639 4365.
Dr. Edward F. Knab
Productivity Constructs, Inc
1969 Fan Palm Way
Palm Springs, CA 92262-8859
P 800 660 8718
M 949 413 7333
ed@edwardknab.com
www.edwardknab.com
www.productivityconstructs.com
www.global-springs.com
Blog: http://edwardknab.spaces.live.com