Introducing Lean In Retail … Start in the Backroom!

The Retail company I had just joined was undergoing a massive transformation.  Fundamentally the new merchandising strategy was to curate a dramatically different set of products from that which was carried historically, but in addition to what was carried historically.  What did this mean for the backroom in every store?

This meant that an enormous number of the business processes had to be transformed to support the new product set because management of the new merchandise required much different capabilities in all aspects of running a retail company.  Not only did this transformation require new capabilities but it also required  improvements to productivity and efficiency throughout the company.  And overall this meant a need for cultural change.

I decided that I would introduce Lean process improvement techniques to this company.

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From Click to Ship in 4 Minutes! Ultimate Principles for World Class Fulfillment!

The capability we had in E-Commerce order fulfillment was rather basic.  We had employees manually pushing carts up and down standard warehouse racking aisles picking goods off of shelves.  And when they had completed an order or a set of orders they would then push the entire cart back to a centralized order packing station.

As a Supply Chain Services company we needed a dramatically better capability if we were wanted to have customers trust their growing E-Commerce business with us.  Pushing carts around a warehouse is both inefficient and lacks innovation.

We had to go back to the drawing board.  But in doing so we would end up with a World Class solution!

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To DC Or Not To DC? That is the Warehouse Design Question!

The fast growing E-Commerce channel makes it an attractive avenue for most companies to participate in.  The tremendous amount of investment required to participate in online product sales requires explicit decision making as to how a company is going to fulfill those orders.  You need a warehouse design strategy to provide your fulfillment solution.

The E-Commerce Fulfillment solution you choose must take into account your customer’s demands, your competitive pressures, and the financial constraints that most companies have to deal with.

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What’s the Difference Between Logistics and Distribution?

What is the difference between Logistics and Distribution?

On the surface some people may consider them synonymous.  Without consulting a dictionary both Logistics and Distribution suggest imagery involving the movement of  goods.

But to anyone who works in Supply Chain, in particular with a title including either the term Logistics or Distribution, or if you work in a Distribution Centre or for a Logistics company, then there are distinct differences between these words.

But are there also commonalities?

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Supply Chain is Becoming Younger, More Educated, More Diverse!

Everyone knows that the demographics of the Supply Chain industry are changing, and Supply Chain is becoming younger. They have to. Within a few years, demographers estimate that 400,000 baby boomers will be retiring in Canada every year.

Within the Supply Chain industry, the looming – and in fact, already-started – retirement of baby boomers and shifting job responsibilities brought about by technology are creating a talent crisis.

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Is Your Supply Chain A Cost Centre or a Value Creator?

The Supply Chain function within your company has many responsibilities.  From planning to negotiating to buying, from moving goods to processing goods, and from managing data to managing inventory.  These responsibilities are at the core of making your company run.  But is Supply Chain a Cost Centre or a Value Creator?

Yet often the Supply Chain is undervalued.  While every function must help your company grow and prosper when the heat is on uninformed Executives can view Supply Chain as merely a Cost Centre.  As such there can be unrelenting pressure to continue to cut costs.

Why is Supply Chain often undervalued?  And how do you increase the value of Supply Chain in the eyes of your Executives and other functions?

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Disaster Strikes!!! Is Your Supply Chain Ready To Recover?

Hurricanes!  Earthquakes!  Terrorist Attacks!  Train Derailments!  War! Fire! Cyber Attacks!  Every one is a disaster.

You see it in the news every minute of every hour of every day.  Either some natural disaster or some man made despicable act has occurred somewhere on the planet.  The result is death, destruction and disruption.

Everyone is trying to pick up the pieces.  They are trying to figure out what has happened, how to come to grips with the catastrophic results,  and how to get things going again.

Depending on what the disaster is people can be struggling to know where they can get the basics such as food, water and shelter.

This is where the Supply Chain must kick in to gear: business continuity and disaster recovery.

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Social Media Tips for Supply Chain Leaders!

For busy executives, being active on social media and leveraging social media tips is kind of like networking. It’s one of those things that everyone says you absolutely have to do to benefit your career, but it’s hard to make it part of your daily routine.

Let’s be honest: it’s even harder for those who came of age before social media became ubiquitous. It can be tough to pin down what channels you should be on, what you should be posting, and the specific ways that a strong social media presence will bolster your career.

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Supply Chain Collaboration – The New Way to Drive Value!

Supply chain collaboration is a hot topic today and no wonder: companies that collaborate effectively across the supply chain have enjoyed dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction.

Supplier chain collaboration itself isn’t new. What’s new is that it’s taken on a much greater urgency and importance.

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To Infinity and Beyond! Ultimate Principles for Creating a World Class Team!

SC Viral The Pandemic Diaries

The Supply Chain team was generally viewed as lacking in skill and capability by those outside the organization.  Customers and other internal functions viewed Supply Chain as a dysfunctional organization as evidenced by the poor Supply Chain performance metrics.  And external benchmarking placed our Supply Chain last amongst our competitors.  Going to infinity and beyond was a tall task to say the least.

Inside the Supply Chain organization there were a lot of very smart people.  But there was no trust, teamwork or synergy.   The culture was one more of complacency than of trend setting.  And there was a lack of inspired leadership.

Something had to change!

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Gartner Top 25 Supply Chain List! Is it Relevant?

Gartner recently announced their Top 25 Supply Chains List.  I always find it interesting to see the list, to see who came out on top, and to hear what their views are on prevailing trends.

But as I review the list, compare it to prior years, and consider the scoring methodology I do wonder whether the list in its current form continues to be relevant for identifying the best of the Supply Chain.

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Design in Quality First!

The Division I had just joined was enjoying great success in Sales and Development.  They had created a modular building block design for their products.  Simply there were over two dozen different building block designs which could be configured in innumerable combinations to create the end product.

Each building block was designed to be a low-cost item.  Based on the customer requirements and specifications the building blocks could be combined in varying quantities.  Then a custom outer case, with the appropriate inputs and outputs, would be created to house all of the building blocks, interconnected on a master mother board.

It sounded great on paper and on Powerpoint slides.  But what came next was an absolute nightmare.

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Procurement Don’t go to the Dark Side!

Early in my career I worked in a department that was responsible for the design,testing, sourcing and procurement of packaging materials.  It was a great experience and introduction to so many aspects of the Supply Chain.

But one day one of my peers was fired.  He was responsible for negotiating with the packaging suppliers.  As it turns out he was taking kickbacks.  When that was discovered and verified he was summarily dismissed.  He went over to the dark side.

I never got the precise details but I don’t believe he could have got more than a few thousand dollars for his illicit efforts.  More importantly he got a black mark on his resume, and in his life, that he could never erase.

That was my first lesson on the do’s and don’t of Supplier Relationships.

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Fake News or Supply Chain Fallacies?

Lots of things are happening in Supply Chain Management! Is Supply Chain immune from fake news?

The field is becoming more digital, with end-to-end planning and blockchain technologies transforming the way products are coming to market. It’s becoming more strategic, as companies integrate their Supply Chains and use them as a source of competitive advantage – instead of just a back-office function.

Larger societal changes are affecting the way companies are planning their Supply Chains of the future – everything from the looming arrival of driverless cars, to consumers’ demands that companies be more socially responsible.  And the prevailing use of the term “Fake News“.

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Attracting Millennials Gets Your Digital Supply Chain in Order!

As explained by Brian Barry of Multichannel Merchant, millennials make a growing cross-section of the American labor force. Ignoring this generation is impossible and attracting millennials in the supply chain is an even bigger hurdle.

Since e-commerce has flooded the industry with more orders and stringent delivery expectations, supply chain leaders must think outside the box to attract and retain the next generation.

In fact, millennials will make up more than 75 percent of the workforce by 2025, so it is time for supply chain executives and leaders to enact the changes necessary to guarantee success in both the current and future supply chain.

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