The decision by President Trump to tell 3M to stop shipping masks to Canada and Latin America is astonishing given that all of humanity is facing the same crisis.
Supply issues started with chronic shortages of toilet paper, hand sanitizer and food goods of all kinds. Store shelves have been emptied of the most basic items that we all take for granted.
And then it quickly evolved to shortages of personal protective equipment (PPE) for our Healthcare professionals. The very people whose tireless efforts and personal sacrifices on the front lines of this pandemic don’t even have the basic equipment they need to do their jobs while protecting themselves and their patients.
I never knew what an N95 mask was, nor did I know that there were actually national stockpiles (now proven to be insufficient) of these masks and ventilators and other PPE.
Trump’s action with 3M raises questions for any country about what their Strategic Stockpiles should be and whether future sourcing decisions and actions should be based on parochial nationalistic needs or magnanimous global needs.
Inventory makes the world go round. Stockpiles of raw materials, components, sub assemblies, finished goods, returned goods, and reclaimed and refurbished materials enable all aspects of industry to function and all aspects of the economic engine to run.
Trillions and trillions of dollars of inventories exist all over the world in every conceivable form and in every conceivable channel. Inventory levels will determine whether any company will survive or die. Too much inventory can result in cash flow problems that lead to bankruptcy. Too little inventory can result in an irretrievable loss of business that can lead to business failure.
Given its incredible importance we’d like to explore what may seem to be a simple, yet complicated and truly strategic, question.
Everyone and every company has inventory of some kind or another. In your cupboards and closets, attics and basements at home you have an inventory of goods. At your place of work, whether that be in an office, on a manufacturing floor, or a warehouse, you are surrounded by inventory. And certainly, any store you go to, whether in person or online, has shelves stocked with inventory.
Article written for Supply Chain Game Changer by, and permission to publish here provided by, Christina Morrison at https://www.top10erp.org/.
Imagine an asset that, instead of contributing to a business’s success, costs it money without producing return, makes it harder to get an accurate picture of performance and otherwise hinders its success.
It’s a scary picture for any business owner or employee—and for many, it’s all too real.
Inventory is often the single largest asset in most companies across any industry. It consumes a lot of cash, impacts return on investment and profitability, enables or impedes growth and customer satisfaction, and requires a tremendous amount of resource to manage it. Inventory Management is critical.
Yet a lot of companies big and small, well known and startups, struggle to manage Inventory effectively.
In this “Featuring” series article we are putting the spotlight on Inventory Management. We are presenting our Top 10 Inventory Management articles with techniques and approaches which will have something for everyone to learn from and apply in their own situation.
In this digital age, one of the best ways to earn money is to sell unique products online with the help of an eCommerce platform, such as Amazon, Alibaba, etc. However, to have a profitable online selling business, it’s crucial to understand the importance of inventory management in eCommerce.
An effective inventory management system is one of the most crucial elements of running a sustainable eCommerce business. It helps businesses arrange their products systematically and ensure all products are released on time to increase fulfillment rate and promote positive customer satisfaction.
Small business inventory management tips article and permission to publish here provided by Simcha Michael.
Many overwhelming strategies, processes and techniques will come your way if you have to learn and perform inventory management. It can be hard to make sense of the overall framework you need to use any of the techniques for a small business.
But it’s certainly possible to deal with them with some of the trusted practices in the industry. Large businesses have already pushed limits to minimize human error, and it’s high time you build solid inventory management for growing your company.
The company I had just joined went to market declaring that it was a world leader in Distribution and Logistics. That was a clear contradiction to the Inventory Turnover Mystery I was about to discover.
As I settled into the job and started learning, and studying, the various Supply Chain metrics I was surprised when I looked at the Inventory Turnover performance of the company.
Looking at recent and historical Inventory performance I could see that turnover always stayed around 5-6 turns with little variation. Everyone seemed content with the situation and unmotivated to make it better.
For a company that declared their world leading capability I was astonished. 5-6 turns? True leadership in this areas would require double digit turns.
I needed to figure out what was truly going on and get this Inventory Turnover mystery solved. This was another case for the Supply Chain Detective™.
There are many terms for inventory shrinkage: warehouse shrinkage, product shrinkage, loss of product. They all amount to the same thing — your merchandise is missing from the warehouse shelves.
For businesses that sell physical things, some amount of shrinkage is unavoidable. At point of sale, stores can experience retail shrinkage from breakage and shoplifting. ECommerce businesses experience inventory shrinkage when items are damaged on warehouse shelves or disappear during shipping or receiving.
It’s important to understand your shrinkage rate because it affects your bottom line. Here’s everything you need to know to calculate and prevent inventory shrinkage.
Inventory management is a critical area for most companies. And breakthrough improvements require a process based inventory turnover improvement strategy.
Too much inventory, especially the wrong inventory, can negatively impact cash flow, return on investment, customer satisfaction, and profitability. Too little inventory, especially the wrong inventory, can result in lost sales, inability to delivery to customers, and also impact cash, ROI and profitability.
Despite these devastating and far reaching implications of poor inventory management too often this area is not given the respect and attention that it deserves. You cannot just wave a wand a wish inventory levels will be magically lower.
Brute force approaches will at best result in short term gains. In our experience the best way to systemically, and sustainably, optimize inventory is to take a process based inventory turnover improvement approach.
As we come to the end of our 3rd year here at Supply Chain Game Changer it is time to publish our semi-annual 2019 Top 10 List.
First we want to thank our readers. Our audience and reach continues to expand with Supply Changer now being ranked as one of the Top 20 Supply Chain blogs in the world and one of the Top 15 Procurement blogs in the world. Both are record achievements for us.
Second we want to thank our guest contributors. With dozens of writers and articles we continue to fulfill our vision of sharing expertise and experience from all over the world.
We thank you for your ongoing support and ask you to continue to spread the word about Supply Chain Game Changer. There is truly something of value for everyone no matter what challenge you are facing each and every day.
Here we present our Top 10 list for the second half of 2019. Enjoy!