How Many Depots Does Your Business Need?

The large consumer goods company where I used to work as shipping manager had a central warehouse which served customers via distributors in different regions of the country.  My former boss boasted then that the company saved plenty of money from not having depots.  A company that sells laptops & printers utilises a 3rd partyContinue reading “How Many Depots Does Your Business Need?”

Central vs. Depots:  A Case of a Seemingly Straightforward Solution to a Seemingly Straightforward Problem

My boss at the consumer goods corporation in the Philippines where I worked a long time ago told me the company didn’t need warehouses in the provinces.  A central warehouse in the national capital, Manila, would be enough. The field salespeople in the provinces disagreed.  Having provincial depots assured on-hand inventories of finished products forContinue reading “Central vs. Depots:  A Case of a Seemingly Straightforward Solution to a Seemingly Straightforward Problem”

Seeking Success from Order-to-Delivery Systems

There I was.  The shipping manager of a multinational consumer goods corporation.  Pending orders were piling up. Sales & marketing managers were calling, asking, and following up why shipments weren’t arriving at stores.  The manufacturing lines were running.  The warehouse was full.  The shipping department was loading trucks.  Why weren’t orders being served? There wasContinue reading “Seeking Success from Order-to-Delivery Systems”

Don’t Underestimate an Old-Fashioned Manual Inventory System

Ben (not his real name) was the warehouse-in-charge person at a printing press company.  His job, as the title suggests, was to receive, store, and issue materials and products going to and coming from the printing press’s production lines.  Ben tracked the inventories of items via his Daily Warehouse Status Report (DWSR).  It essentially wasContinue reading “Don’t Underestimate an Old-Fashioned Manual Inventory System”

The Challenges & Benefits of The Physical Count

A finance executive of a metals manufacturing corporation wanted a physical count of all items at the company’s plants.  And he wanted it done in two (2) days.  A physical count consists of a team identifying, counting, and tagging items, such as products, work-in-process, and raw materials.  The purpose of a physical count is toContinue reading “The Challenges & Benefits of The Physical Count”

Inventory Record Accuracy:  A Step to Supply Chain Improvement

Managers of a large food condiments manufacturer bragged that their finished products Inventory Record Accuracy (IRA) was 99%.  They added that they met this level constantly, not just when I as a consultant was there auditing the manufacturer’s supply chain operations.    How do you compute the IRA?  I asked the warehouse manager.  The warehouse officeContinue reading “Inventory Record Accuracy:  A Step to Supply Chain Improvement”

Managing Uncertainty

We’re like baby sea turtles when we begin our careers.  We don’t know what awaits us as we venture out into the world.  We learn to deal with a lot of uncertainty.  A property manager proposed a project to build a warehouse that would require an expenditure of PhP 2,500,000.00 (USD$ 50,000).  Three (3) outContinue reading “Managing Uncertainty”

Logistics Solutions Can Be Simple

A medium sized retailer of health food items imports products from abroad.  The retailer prides itself with a very well organised warehouse and a crew of workers that swiftly repack the imported products and send them to the retailer’s stores all over the country.  The retailer’s sales department, however, has constantly complained about lack ofContinue reading “Logistics Solutions Can Be Simple”