Supply Chain Secrets Blog
Logistics and Supply Chain news, articles, tips and insights
How to Boost Your Warehouse Performance – Some Quick Tips
One of the key tools we use to boost warehouse performance is the FACTS framework, which stands for Flow, Access, Capacity, Trace, and Safety. Flow refers to optimizing the movement of products through the warehouse to reduce unnecessary handling and costs. Access is about ensuring picking areas are clear and easily navigable. Capacity focuses on using the right storage systems to maximize efficiency. Trace emphasizes accurate inventory tracking, while Safety underpins all operations…
Warehouse Capacity FIX – What Works
One of the most common issues is that businesses feel they’re out of space when, in reality, they may have unused vertical space. By adding extra beams or shelves to the racking, you can create additional storage levels and better utilize cubic capacity. This is a simple, low-cost fix that can add more storage without the need for expansion. Managing inventory is also a key. Many businesses hold on to slow-moving or obsolete stock that occupies valuable space…
How to Reduce Warehouse Costs with Warehouse Product Slotting
The primary aim of product slotting is to enhance productivity by reducing travel time for pickers. For example, fast-moving products should be placed closer to the staging or packing areas, where they’re picked more frequently. This minimizes the distance that workers must walk, cutting down on the time spent retrieving products and allowing more orders to be processed each day. The benefits of product slotting are significant. In warehouses where this practice has been implemented correctly, businesses have seen productivity increases of 10% to 30%…
How to STOP Order Profitability Leaks – Logistics Costs
Customer and product profitability might not seem like the most exciting topic—until you realize how much it affects your bottom line. Over the years, I’ve seen countless businesses lose money on customer orders without even knowing it, all because they lack proper visibility. The problem often gets shelved because it feels too difficult to fix. Addressing loss-making products or customers requires cross-functional collaboration, and that’s where things start to fall apart…
Easy Logistics Cost Reduction – But Few People Do This
Reducing logistics costs can seem overwhelming, with so many factors to consider and constant pressure to deliver results. However, focusing on just on specific area can drive significant savings. Let me start by showing you a diagram that helps explain why logistics cost reduction can feel overwhelming. Imagine senior executives pushing you to cut costs, and you’re faced with so many areas to consider…
Managing your Supply Chain Team: Interview with Alma Arzate
Alma is a strong advocate for the Situational Leadership Model, a framework she uses to tailor her management approach to individual team members’ needs. By assessing each person’s readiness for new tasks, Alma ensures her team members receive the right level of support to thrive…
Warehouse Capacity – How to Increase It and Avoid Moving
A useful guideline for managing warehouse space is to use around 85% of its total capacity. For example, if your warehouse has 10,000 pallet slots, aim to use about 8,500. This approach ensures that you have enough operational space for moving and reshuffling inventory. Overcrowding can lead to inefficiencies, much like trying to find a parking spot in a crowded mall. Keeping a portion of your warehouse open helps maintain smooth operations and productivity…
Women in Supply Chain – Imposter Syndrome – with Alma Arzate
It’s been a challenge throughout my career. When I started out in supply chain in Mexico, there weren’t many female leaders I could look up to. Supply chain has always been a male-dominated field, and that affected how I saw myself in leadership roles. I remember being promoted to a people leader in 2004, and out of 104 managers, only four of us were women. I believe overcoming imposter syndrome is about building self-confidence, and that’s not always easy…
Cost to Supply v Cost to Serve and Why You Need to Understand It
Cost to supply is closely related to cost to serve but flips the focus to your suppliers’ costs for delivering goods to your business. Understanding these costs is just as crucial as knowing your own cost to serve customers. This insight helps you make key decisions, like determining whether direct store delivery or using your distribution center (DC) is more cost-effective…
How to Reduce Freight Costs – Key Tips Many People Miss
Struggling with high freight costs? It’s a common issue, but there are ways to manage it. Consolidating freight across different branches or divisions within a company can significantly reduce costs. By combining shipments and negotiating as a single entity, companies can leverage higher volumes to secure better rates from carriers…