Reverse Logistics activities. Reverse Logistics consists of the activities to bring items back from their current location, through the same or a different supply chain. It is therefore a cost; but, is that a negative for your enterprise, or a benefit which could produce a positive return? Do not view Reverse Logistics in a negative light; instead, consider all aspects that … Read More
Inventory policy and the factors used in its design
Inventory management challenges. An effective inventory policy is a good theoretical objective, but at a practical level, it becomes difficult to achieve. This is due to senior management’s views concerning the role of inventory and the knowledge and skills of supply chain and logistics professionals to structure a decision making process for an inventory policy. An example of the challenges … Read More
The long tail of Inventory requires a good structure
Long tail of inventory. Currently, media articles are discussing the potential changes to business and the wider community from the implementation of new technologies. But fewer discuss the potential changes from implementing different business models caused by changes in markets. A recent comment noted that order sizes on Asian fabric mills have decreased by between 20 and 30 percent over … Read More
New technologies and inventory planning applications
Technologies and planning. The hype surrounding new technologies has identified that many tasks will become automated and jobs are at risk. This will include supply chains, but how long until there is concrete evidence of job replacement actually occurring? Recently, Sears, a US based retailer announced that all items sold through its stores will have an RFID tag attached for … Read More
Inventory Planning is more than figures in a formula
Uncertainty and risks. Increasing response to orders (that is reducing lead times) is apparently becoming the requirement of buyers, from consumers to retailers to tier 1 suppliers and back through supply chains. If this situation is true (and I have doubts about the actual situation vs the hype), then having sufficient inventories at critical nodes in your supply chains will … Read More