Logistics, Trade Administration and Supply Chain

Key performance indicators (KPIs) provide an invaluable way to judge the efficacy of operations, determine opportunities for improvement, improve customer experiences , and better manage supply chain functions, including warehouse management.  Supply chain leaders that wish to remain proactive to risks of disruption and improve operations through 2020 and beyond need to understand the top warehouse KPIs and how they can mean the difference between success and failure. This blog is the first in a two-part series where Veridian, a supply chain technology implementation company, will share the top 19 warehouse KPIs that track performance in the following areas: 1. Internal Operations 2. Staffing 3. Suppliers 4. Customers Let’s cover the top 10 warehouse KPIs for supply chain leaders and warehouse managers to succeed in 2020. (1) Internal Operations—Shrinkage of Inventory: Inventory shrinkage refers to the amount of inventory listed in the accounting records, but such inventory...

When retailers managed inventory, one of the methods for inventory control was to use some form of a trigger-point method replenishment program. That is, when an item in stock is depleted to the level of the trigger point quantity, a purchase order is placed on a vendor to replenish the item. In such systems, retailers make their own forecast and inventory control rules. Alternately, retailers will replenish on a fixed cycle i.e. once a week basis and order an amount to fill designated shelf space for an item. According to the International Mass Retail Association, over 60 percent of hard goods and almost 40 percent of soft goods are under replenishment programs managed by retailers. Although retailer-managed replenishment programs are expected to continue, there are also expected to be a substantial growth in vendor-managed inventory (VMI) that is continuous replenishment. With electronic data interchange (EDI) and point of sale data, vendors can be as aware of what is on the ret...

The definition of supply chain management (SCM) presented previously suggested a number of key factors and related characteristics that are the key to successful implementation.. Those key factors are inventory, cost, information, customer service and collaborative relationships. Each of these deserves some special consideration. Inventory Managing the flow and level of inventory is a central focus of SCM and a major performance metrric to gauge success. In simplistic terms, the inventory level must be sufficient to provide acceptable customer service but low enough to minimize SCM costs. To maintain the balance between supply of and demand for inventory stock, the supply chain requires integrated management to avoid duplication among members of the supply chain. Inventory visibility as it move through the supply chain is necessary to reduce or eliminate uncertainty, which eliminates safety stocks. This includes visibility of invotry being held in warehouses and other storage ...