SmartTurn Inventory and Warehouse Management Best Practices Series
If your operation is one of the tens of thousands of warehouses in the United States still using paper, Microsoft Excel, or processes first developed in the late 70s/early 80s, we’re here to help. To give you tools, information, guidance, tips, proven methodologies, we offer you the forthcoming "Best Practice Series for Inventory and Warehouse Management."
If your operation is one of the tens of thousands of warehouses in the United States still using paper, Microsoft Excel, or processes first developed in the late 70s/early 80s, we’re here to help. To give you tools, information, guidance, tips, proven methodologies, we offer you the forthcoming "Best Practice Series for Inventory and Warehouse Management."
Change You Can Handle: Best Practices for Inventory and Warehouse Management
Posted 04-05-2008 at 04:17 PM by Kevin Collins
Benjamin Franklin and Albert Einstein are two giants of history who knew a thing about getting things done right. The observation that “insanity is doing the same thing over and over again with the expectation of different results” is attributed to both of them.
Does their observation characterize your inventory and warehouse operations?
If your operation is one of the tens of thousands of warehouses in the United States still using paper, Microsoft Excel, or processes first developed in the late 70s/early 80s, we’re here to help. To provide you tools, information, guidance, tips, proven methodologies, we offer you the forthcoming “Best Practice Series for Inventory and Warehouse Management.”
SmartTurn created this series for business owners, accounting staff, procurement managers responsible for inventory or warehouse operations, and anyone else who wants to demystify warehouse planning and operations. As a complement to the series, we’re also launching an experts forum and “inventory geek” section. (Expect to see this added here by May 1).
Learning from Successful Operators
We’re going to showcase really successful small to mid-sized warehousing businesses. You’ll learn from companies that can stretch a dollar and make three. We’ll look at what works and how well it works. We’ll detail how and why their success endures. They’ll discuss how IT investments in inventory and warehouse management improve everything from efficiency and order fulfillment accuracy, to accounts receivable and customer satisfaction.
To be published in the coming months in chapter form, the series will help you make your operation a higher performing machine. Sure, it is a lofty goal but you can do better; you just may not know how. We’re here to help you. We won’t preach; just teach. If you’re the owner or manager, this series is for you. If you’re responsible for making your warehousing workplace a more efficient and smoothly functioning profit center, this series is definitely for you. If you aren’t motivated by either making or saving money, this series isn’t for you.
What Are Best Practices?
Best practices are the things that successful companies do very, very well. Few companies know supply chain management better than McDonalds. Research and Development expertise? You’d probably look first to IBM. Branding and marketing expertise? Apple knows a bit about both areas. Coca Cola has always been renowned for its advertising expertise.
Best Practices are the most efficient (takes the least amount of effort) and effective (delivers the best result) way of accomplishing something. They’re techniques or methodologies that, through experience and research, produce better results than what was previously done. Better can mean a lot of different things; in general, though, we’re talking faster, cheaper and easier.
The Fine Print: Here is the caveat. A commitment to using best practices (in any field) is a commitment to using all the available knowledge and technology to ensure success. We assume that if you’re going to spend the time to read most (if not all) of the chapters in this series, you’re also going to commit to applying your new expertise and knowledge. We also assume that you are (or at least are interested in) using or learning more about Warehouse Management Software (WMS) technology, the implementation of which makes these best practices far more possible and practical.
According to industry analysts Aberdeen Group, just 47% of companies are currently taking full advantage of the enabling power of WMS applications to reduce labor costs and improve customer service metrics. After you finish our series, you’ll really wonder how the 53% justify doing less than they ultimately could (from much less to absolutely nothing at all), given the clear benefits that we’re going to detail.
How to use this series?
Read the chapters. Think about the lessons. Think about how much easier your life would be if you copied what really successful companies were doing. Think about how much more money (sales, revenue, income, etc.) you would have. Then do it.
What this series will help you do?
Make more money. Pay less overtime. Use fewer resources. Reduce operating costs. Lower headcount. Increase efficiency. Attract, grow, and retain your existing customers. Improve your business processes. Develop insights into your business so you can understand where your roadblocks are.
You’ll be able to raise your efficiency in receiving, putaway, picking, shipping and inventory management. You’ll be able to increase your on-time, and accurate shipping percentage, and lower overtime costs. You’ll garner insight and hopefully some understanding of the problems that are holding you back from making those next steps. What next steps? The next steps you need to increase your profitability, efficiency, etc.
Do you need to read every chapter?
Ideally! Everything is laid out in sequential, logical order. Icons will reinforce the important lessons and highlight the mistakes/minefields to avoid. NOTE: We’ll build out chapters as our customers demand, so get active in the SmartTurn forums and influence the order and content.
How the series is organized?
Logically. The chapters assume that you’re going (or are likely in the near future) to implement an inventory control and WMS system. We’re assuming this much because we want to bring a swift end to your days of exclusively using paper, Microsoft Excel, or an outdated, batch-mode warehousing system. Its 2008, there is a better way to do it. (Some of your competitors already know this, which you may have already suspected).
Below is a preliminary list of initial best practices. It is just the starting point and (as noted earlier) will undoubtedly evolve as this series expands and evolves based on input from the inventory and warehousing community.
Planning and Setup
We’ll look at the merits of SaaS, off the shelf, and custom WMS systems. We’ll also explore Interoperability, Wireless connectivity and Networking. We’ll discuss the most important introductory steps to take so you can get started quickly and show immediate impact to your business. We’ll also discuss how to recognize when you’re ready for the next step and able to reap the benefits of more advanced technical capabilities.
Inbound
We’ll look at Ordering, Receiving and Putaway and show you how to improve your inbound efficiencies and accuracy. High performance fulfillment begins with accurate putaway. We’ll show you how to create an inbound system that sets the stage for great outbound results.
Inventory Management
Once the inventory is in your warehouse, what are you doing with it? How are you managing it? We’ll look at Location Setup, Item Slotting/Product Placement, Cycle Count Policies, and Cycle Counting. We’ll then study how Bin Transfers, Adjustments, Physical Inventories, and Cube Utilization impact profitability, resource allocation, labor requirement, and customer service.
Fulfillment
When it is time to ship, what do you do? If you’re an experienced warehouse practitioner, or a 3PL managing multiple clients or warehouses, you know that more than 50% of operational costs originate with picking. In these chapters, we’ll discuss Pick Policies, Picking, and Replenishment, LIFO, FIFO and LEFO. You’ll learn from people who know how to maximize picking efficiency. We’ll also talk about how to adapt to changing market requirements.
Collaboration
Finally, we look at the big issue of Collaboration, including Internal/External Access and User Roles. How can you create real visibility that you can share with your teams (everyone who needs to collaborate in the order to cash cycle, for example)?
What’s in it for You
Sure it is a lot of information, but we’re giving it to you in carefully measured 300 calorie chunks. You’ll have lots of time to digest them. This is important because we’d like you to chew on the following:
According to the American Productivity & Quality Center, the three main barriers to implementing best practices are a lack of knowledge about current best practices, lack of motivation to make the necessary changes to adopt them, and a lack of knowledge and skills required to implement them.
Read every chapter in this series and you’ll immediately eliminate the first barrier. By the time we’ve published all of the chapters and you’ve enthusiastically read them (and re-read them), you’ll have a clear idea of what works well, the mistakes you should avoid, and have some idea of how to apply some or all of the lessons in this series to your particular and, dare we say it, unique situation.
We’ll take care of the second barrier by providing you with evidence (both empirical and anecdotal) of the benefits and ROI of implementing these best practices. Because we’re also going to show you how other companies have successfully implemented change, we’re also going to eliminate the third barrier. You won’t have any more knowledge barriers, but you will have a glorious opportunity to become a Best Practices-implementing guru at your company. Worst case scenario? You’ll be one step ahead because you’ll know what you don’t know.
Consider the alternative. You can continue what you’re currently doing and fall further behind your competition. By doing nothing, you can ensure that one day, you’ll be out of business or out of a job. This series will help you avoid both fates.
SmartTurn is committed to fostering a self-sustaining community of inventory and warehouse experts through knowledge sharing and learning. Whatever your motivation, we invite you to join this inventory and warehouse management innovation community.
Kevin Collins,
Director, Product Management
SmartTurn, Inc.
1000 Broadway
Oakland, CA 94607
USA
Sales: 1-888-667-4758
Tel: 1-510-267-5150
Fax: 1-510-208-5754
About SmartTurn
SmartTurn™ Inventory and Warehouse Management System is the first true on-demand warehouse management system to provide enterprise class functionality at a fraction of the cost of traditional license and install software. Designed for quick implentation, ease-of-use, real-time inventory accuracy and warehoues performance, the SmartTurn system provides visibility on every item across single or multiple warehouses. Founded on the premise that software should be smart, simple and safe, SmartTurn’s customers span the value chain of most industries to include manufacturers, wholesalers as well as 3PLs. SmartTurn is privately held and backed by leading investors, NEA and Emergence Capital Partners. Website www.smartturn.com
About the Author
Mr. Kevin Collins joins SmartTurn having been in the warehousing and distribution business for over 15 years, where he fulfilled leadership roles for a military distribution company, a third party logistics service provider, a heating, ventilation and air conditioning company, a retail service warehouse and a general merchandise/wholesale grocery warehouse where he also partook in two acquisitions. Mr. Collins has spent his entire career learning the art of warehousing and logistics, and has been in every conceivable role within a warehouse. During his career span, Mr. Collins has also had the privilege of working directly with application developers learning about software from inventory and procurement to transportation and warehouse management systems. Mr. Collins brings to SmartTurn an invaluable background and information about processes, software and logistics, and the intricate balances between them.
Does their observation characterize your inventory and warehouse operations?
If your operation is one of the tens of thousands of warehouses in the United States still using paper, Microsoft Excel, or processes first developed in the late 70s/early 80s, we’re here to help. To provide you tools, information, guidance, tips, proven methodologies, we offer you the forthcoming “Best Practice Series for Inventory and Warehouse Management.”
SmartTurn created this series for business owners, accounting staff, procurement managers responsible for inventory or warehouse operations, and anyone else who wants to demystify warehouse planning and operations. As a complement to the series, we’re also launching an experts forum and “inventory geek” section. (Expect to see this added here by May 1).
Learning from Successful Operators
We’re going to showcase really successful small to mid-sized warehousing businesses. You’ll learn from companies that can stretch a dollar and make three. We’ll look at what works and how well it works. We’ll detail how and why their success endures. They’ll discuss how IT investments in inventory and warehouse management improve everything from efficiency and order fulfillment accuracy, to accounts receivable and customer satisfaction.
To be published in the coming months in chapter form, the series will help you make your operation a higher performing machine. Sure, it is a lofty goal but you can do better; you just may not know how. We’re here to help you. We won’t preach; just teach. If you’re the owner or manager, this series is for you. If you’re responsible for making your warehousing workplace a more efficient and smoothly functioning profit center, this series is definitely for you. If you aren’t motivated by either making or saving money, this series isn’t for you.
What Are Best Practices?
Best practices are the things that successful companies do very, very well. Few companies know supply chain management better than McDonalds. Research and Development expertise? You’d probably look first to IBM. Branding and marketing expertise? Apple knows a bit about both areas. Coca Cola has always been renowned for its advertising expertise.
Best Practices are the most efficient (takes the least amount of effort) and effective (delivers the best result) way of accomplishing something. They’re techniques or methodologies that, through experience and research, produce better results than what was previously done. Better can mean a lot of different things; in general, though, we’re talking faster, cheaper and easier.
The Fine Print: Here is the caveat. A commitment to using best practices (in any field) is a commitment to using all the available knowledge and technology to ensure success. We assume that if you’re going to spend the time to read most (if not all) of the chapters in this series, you’re also going to commit to applying your new expertise and knowledge. We also assume that you are (or at least are interested in) using or learning more about Warehouse Management Software (WMS) technology, the implementation of which makes these best practices far more possible and practical.
According to industry analysts Aberdeen Group, just 47% of companies are currently taking full advantage of the enabling power of WMS applications to reduce labor costs and improve customer service metrics. After you finish our series, you’ll really wonder how the 53% justify doing less than they ultimately could (from much less to absolutely nothing at all), given the clear benefits that we’re going to detail.
How to use this series?
Read the chapters. Think about the lessons. Think about how much easier your life would be if you copied what really successful companies were doing. Think about how much more money (sales, revenue, income, etc.) you would have. Then do it.
What this series will help you do?
Make more money. Pay less overtime. Use fewer resources. Reduce operating costs. Lower headcount. Increase efficiency. Attract, grow, and retain your existing customers. Improve your business processes. Develop insights into your business so you can understand where your roadblocks are.
You’ll be able to raise your efficiency in receiving, putaway, picking, shipping and inventory management. You’ll be able to increase your on-time, and accurate shipping percentage, and lower overtime costs. You’ll garner insight and hopefully some understanding of the problems that are holding you back from making those next steps. What next steps? The next steps you need to increase your profitability, efficiency, etc.
Do you need to read every chapter?
Ideally! Everything is laid out in sequential, logical order. Icons will reinforce the important lessons and highlight the mistakes/minefields to avoid. NOTE: We’ll build out chapters as our customers demand, so get active in the SmartTurn forums and influence the order and content.
How the series is organized?
Logically. The chapters assume that you’re going (or are likely in the near future) to implement an inventory control and WMS system. We’re assuming this much because we want to bring a swift end to your days of exclusively using paper, Microsoft Excel, or an outdated, batch-mode warehousing system. Its 2008, there is a better way to do it. (Some of your competitors already know this, which you may have already suspected).
Below is a preliminary list of initial best practices. It is just the starting point and (as noted earlier) will undoubtedly evolve as this series expands and evolves based on input from the inventory and warehousing community.
Planning and Setup
We’ll look at the merits of SaaS, off the shelf, and custom WMS systems. We’ll also explore Interoperability, Wireless connectivity and Networking. We’ll discuss the most important introductory steps to take so you can get started quickly and show immediate impact to your business. We’ll also discuss how to recognize when you’re ready for the next step and able to reap the benefits of more advanced technical capabilities.
Inbound
We’ll look at Ordering, Receiving and Putaway and show you how to improve your inbound efficiencies and accuracy. High performance fulfillment begins with accurate putaway. We’ll show you how to create an inbound system that sets the stage for great outbound results.
Inventory Management
Once the inventory is in your warehouse, what are you doing with it? How are you managing it? We’ll look at Location Setup, Item Slotting/Product Placement, Cycle Count Policies, and Cycle Counting. We’ll then study how Bin Transfers, Adjustments, Physical Inventories, and Cube Utilization impact profitability, resource allocation, labor requirement, and customer service.
Fulfillment
When it is time to ship, what do you do? If you’re an experienced warehouse practitioner, or a 3PL managing multiple clients or warehouses, you know that more than 50% of operational costs originate with picking. In these chapters, we’ll discuss Pick Policies, Picking, and Replenishment, LIFO, FIFO and LEFO. You’ll learn from people who know how to maximize picking efficiency. We’ll also talk about how to adapt to changing market requirements.
Collaboration
Finally, we look at the big issue of Collaboration, including Internal/External Access and User Roles. How can you create real visibility that you can share with your teams (everyone who needs to collaborate in the order to cash cycle, for example)?
What’s in it for You
Sure it is a lot of information, but we’re giving it to you in carefully measured 300 calorie chunks. You’ll have lots of time to digest them. This is important because we’d like you to chew on the following:
According to the American Productivity & Quality Center, the three main barriers to implementing best practices are a lack of knowledge about current best practices, lack of motivation to make the necessary changes to adopt them, and a lack of knowledge and skills required to implement them.
Read every chapter in this series and you’ll immediately eliminate the first barrier. By the time we’ve published all of the chapters and you’ve enthusiastically read them (and re-read them), you’ll have a clear idea of what works well, the mistakes you should avoid, and have some idea of how to apply some or all of the lessons in this series to your particular and, dare we say it, unique situation.
We’ll take care of the second barrier by providing you with evidence (both empirical and anecdotal) of the benefits and ROI of implementing these best practices. Because we’re also going to show you how other companies have successfully implemented change, we’re also going to eliminate the third barrier. You won’t have any more knowledge barriers, but you will have a glorious opportunity to become a Best Practices-implementing guru at your company. Worst case scenario? You’ll be one step ahead because you’ll know what you don’t know.
Consider the alternative. You can continue what you’re currently doing and fall further behind your competition. By doing nothing, you can ensure that one day, you’ll be out of business or out of a job. This series will help you avoid both fates.
SmartTurn is committed to fostering a self-sustaining community of inventory and warehouse experts through knowledge sharing and learning. Whatever your motivation, we invite you to join this inventory and warehouse management innovation community.
Kevin Collins,
Director, Product Management
SmartTurn, Inc.
1000 Broadway
Oakland, CA 94607
USA
Sales: 1-888-667-4758
Tel: 1-510-267-5150
Fax: 1-510-208-5754
About SmartTurn
SmartTurn™ Inventory and Warehouse Management System is the first true on-demand warehouse management system to provide enterprise class functionality at a fraction of the cost of traditional license and install software. Designed for quick implentation, ease-of-use, real-time inventory accuracy and warehoues performance, the SmartTurn system provides visibility on every item across single or multiple warehouses. Founded on the premise that software should be smart, simple and safe, SmartTurn’s customers span the value chain of most industries to include manufacturers, wholesalers as well as 3PLs. SmartTurn is privately held and backed by leading investors, NEA and Emergence Capital Partners. Website www.smartturn.com
About the Author
Mr. Kevin Collins joins SmartTurn having been in the warehousing and distribution business for over 15 years, where he fulfilled leadership roles for a military distribution company, a third party logistics service provider, a heating, ventilation and air conditioning company, a retail service warehouse and a general merchandise/wholesale grocery warehouse where he also partook in two acquisitions. Mr. Collins has spent his entire career learning the art of warehousing and logistics, and has been in every conceivable role within a warehouse. During his career span, Mr. Collins has also had the privilege of working directly with application developers learning about software from inventory and procurement to transportation and warehouse management systems. Mr. Collins brings to SmartTurn an invaluable background and information about processes, software and logistics, and the intricate balances between them.
Total Comments 0
Comments
Total Trackbacks 0
Trackbacks
Recent Blog Entries by Kevin Collins
- Best Practices for Kitting and Sub-Assembly (11-07-2008)
- Best Practices for Warehouse Receiving (10-23-2008)
- Annual/Physical Inventory Best Practices (10-23-2008)
- Best Practices for Picking in Warehouses and Distribution Centers (10-23-2008)
- Best Practices for Putaway (10-23-2008)
