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Follow on Google News | Tales of a Supply Chain ProfessionalAs the principal of a supply chain consulting firm specializing in the design of warehousing, distribution & fulfillment operations/ networks.......,
Racking up hundreds of thousands of air-miles, my work as “supply chain consultant” brings me into client board rooms where battle plans are conceived to gain market share by delivering a unique value proposition (UVP) to their customers. The comparative analysis of ROIs associated with traditional, mechanized, & automated alternatives is an integral part of this drill. In the battle 4 supply chain supremacy, reduction in “body count” has always been the justification 4 arming distribution centers with mechanized & automated systems, however in today’s global theater , cost reduction alone is no longer enough 2 insure survival. Over the course of more than a quarter – century work experience, the last 17 years of which as a supply chain expert (Operation + Biz Development + Solutions Designing + CRM) employed by many of the most respected companies in India, I have witnessed a profound change in the rules of engagement pertaining 2 cost justification of warehouse automation. In decades past, an old business adage seemed to apply: “U can have it fast, good, & Cheap…Pick any two”. The theory unfolded as follows: • Deliver quickly & with high quality; but it will b expensive. • Deliver quickly & inexpensively; • Deliver high quality, inexpensively; Throughout time, this paradoxical triangle of seemingly conflicting objectives has been largely accepted by the business community as a fundamental governing principal. Today, however, my marching orders r aimed at reducing cost, assuring quality, & compressing time within my clients’ operations. Quantum leaps in technology have periodically opened incredible windows of opportunity 4 those poised 2 leverage change & break from the rules of convention. The last major change was the advent of the world-wide-web which spawned the dot-com boom in the late 90’s. Fledging companies, fueled by Wall Street e-tail euphoria & an abundance of venture capital, began 2 push the realm of possibility within the supply chain in an effort 2 gain strategic advantage & tactical superiority. This was a technology-driven war that would transform the business world as w knew it. It was a time of accelerated change. Just as the silicon chip had lowered cost & increased the performance of electronics & computing; & as Ford’s assembly line had boosted productivity; ERP suites, to WMS & WCS; delivering order fulfillment tasks via radio-frequency data transmission directly to the equipment& personnel on the floor. The new electronic data stream condensed processes seamless & virtually eliminated keypunching, paper, & other means of manual intervention. It provided a real-time tactical dashboard which operations could use to hone their battle plans & strategically manage their deployment of systems, inventory, & labor. Some companies, eager 2 adopt the new tech, hastily applied these new systems 2 their existing sub-optimized business processes. Many of them crashed & burned as a result. Others recognized the need 2 re-engineer their business models, optimize processes, & only then apply the new arsenal of weapons 2 achieve a never before achievable balance of speed, cost, & quality. Others simply chose 2 sit on the sidelines & observe the battle in relative safety. This bunker mentality proved 2 b the undoing of many companies who fell too far behind their competitors 2 even regain dominance in the marketplace. When companies have come & gone in each of these historic battles, one post-war legacy remains, customers will never want 2 give up the UVP spawned by the supply chain arms race. They will forever want it fast, good, & cheap! This new paradigm driven by a, more demanding, perhaps spoiled, consumer requires that all three value elements b delivered flawlessly. Today’s challenged economic battlefield has set corporate sights on advanced systems that reduce labor, speed delivery, & increase accuracy, thereby contributing 2 a competitive advantage. Since order-picking is typically the area in which the largest labor component resides, MHE’s manufacturers have focused their offerings on integrated systems which reduce human intervention & the number of touches associated with the pick process. Contrary 2 conventional wisdom, the application of integrated mechanized & automation systems is not evidenced only in high-tech, high-margin business sectors. # # # Rev mission, vision, policies, plans, targets & processes Balanced appr of opporn, resources & strategy Identify, understand, & analyze key drivers Formulate stratgies & align these wit key drivers Provide & support framework 2 implement strategy. End
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