Supply Chain Opinion
Five
resolutions
Allen Scott, UK managing director,
Manhattan Associates, outlines five
resolutions that he believes can militate
against the effects of the credit squeeze,
optimise supply chain performance and
enable companies to come through 2009
leaner and fitter.
Resolution 1: Mitigate the impact of
Finally, a common trait exhibited by many isolated entity. In today’s trading climate, in
postponing capital expenditure
supply chain executives following a which companies are looking to minimise
successful warehouse management solution inventory to free up capital, and at the same
While new distribution centres (DCs) and (WMS) install is complacency. Often, the time are striving to maximise customer
warehouse expansions may be postponed, system is implemented and a company satisfaction, collaborating with trading
there are many ways to squeeze more derives immediate (0 to 3 months post- partners is no longer optional. Ever since
efficiency from your existing DC operations implementation) and medium-term (3 to 12 Michael Porter first published his ideas about
with more modest investments. Slotting months) benefits but fails to yield ongoing the need for collaboration and more joined-up
Optimisation software, which you can buy benefits beyond that. As a matter of routine, thinking between enterprises, companies have
nowadays as a relatively low-cost standalone 12 months or so after every WMS been talking about it. Few however have put
solution, can be integrated easily with your implementation, supply chain executives the concept into practice – until recently that
existing warehouse management solution, so should work with their solution vendor to is. Last year was the first time we have really
you can work out the best picking profile for undertake an Operational Performance started to see supply chain practitioners, in
your warehouse to provide easy access to Review. The key thing to bear in mind here is any significant volume, starting to put into
fast-moving goods, change pick profiles that this is not a review of the system’s place the plans, processes and systems that
rapidly to reflect changing demand patterns, operating performance; rather, it is a review of actually facilitate large-scale, supply chain
and work out the optimum location for large or the company’s specific operational processes, ‘eco-system-wide’ collaboration. We expect
heavy items. This translates as both a time how they have evolved since the system was this trend to accelerate this year as
and money saving. Labour Management implemented, and what configuration changes companies in every sector start to realise the
software, which can also be bought as a need to be made to synchronise the value of taking such a ‘holistic’ approach to
standalone application, focuses entirely on technology’s capabilities with the business’s managing and optimising the supply chain.
your human resource assets. With labour new operational processes. Some companies Important factors that shape an effective
typically accounting for 55 per cent of the total also choose not to switch on certain elements collaboration strategy include developing a
cost of warehouse operations, performance of functionality when they first deploy a WMS comprehensive change management
monitoring is a great way to compare activity and this post-implementation consultancy programme, helping your suppliers
levels and improve productivity as well as exercise becomes an opportunity to decide understand what’s in it for them, considering
providing a feedback mechanism that rewards what other functionality can be activated. language and geographical restrictions, not
efficiency, quality and safety, in turn rushing things, and making your suppliers –
decreasing employee turnover. Slotting and Collaborate to compete large and small – aware that there are now a
labour management may not have been a Michael Porter, in his bestseller, The range of Extended Enterprise Management
priority in recent years with supply chain Competitive Advantage of Nations written 20 solutions available in the marketplace that you
executive attention being focused elsewhere years ago, eulogised the benefits of can provide to them to equip them with a
but we expect this to change in 2009. competing as a supply chain rather than an virtual outbound warehouse management >>
44
MANUFACTURING
&LOGISTICSIT March 2009
www.logisticsit.com
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56