inventory

The December Supply Chain Index from Cortera provides additional evidence that retailers were cautious in their 2009 holiday inventory strategies, resulting in less debt and better cash positions. The monthly index measures accounts receivable activities among manufacturers, distributors and wholesalers, retailers, services, and transportation companies.

The December results were largely consistent with levels from November 2009, marking the second consecutive month of conditions historically seen in the months following a holiday shopping season but rarely seen during peak shopping months.

Nearshoring has become a popular trend (perhaps more popular as a concept than an actual practice) for companies looking to gain more control over their extended supply chains by bringing work that had been offshored to Asia back closer to home. One small Midwest-based manufacturer of precision metal stampings, Chirch Global Manufacturing, has adopted a strategy that it describes as onshoring/offshoring –maintaining a presence in China while keeping jobs in its native Illinois backyard. This strategy has been made possible thanks to Chirch’s adoption of cloud computing.

Cloud computing is the latest trend in software solutions, even though it’s not necessarily all that new. It’s just become a lot more common, especially as the mainstream has made Internet-based repositories of software applications so ubiquitous and so easy for users to share the same app. Google, for instance, has made its software packages available via the cloud for years. Similarly, anybody who has uploaded or shared a video on Youtube or a photo on Shutterfly has experienced the power of cloud computing.

Avcor Health Care Products, a manufacturer of compression dressings, thermal compression bandages, and I.V. aids, has implemented a warehouse management system (WMS) to gain greater inventory visibility and operational efficiency.

An operational review of Avcor’s business revealed there were areas related to its rapid growth that were far too manual and resulted in redundant checks and balances. Using the ShipForce WMS from Deposco helped to eliminate five separate manual quality assurance checkpoints, which reduced labor costs.

Managing inventory efficiently and fully utilising valuable floor space has been made easier by a shelving system that allows the simple addition of mezzanine structures as required.

Most managers think that long-span pallet racking is the most cost-effective option for factories, but thanks to a number of advances in the design, engineering and material technology of racking solutions, there are now new choices available.

Metalsistem Australia director Ms Oshi Kirk says many companies over-specify and spend more money than they need to on their racking, when lower-cost options can provide a better and more versatile way of achieving the desired outcome.