For a lot of businesses, an item that has a negative balance for quantity on hand is normal. It represents a situation where they are playing catch up with their information. For example they send stock out the door as soon as it arrives, before they tell their system that it arrived. Eventually, you would … Read moreWhere do you store your negative stock on hand?
I just came across promotional advertising from an ERP vendor offering a few licenses for a very low price. While this sounded like a very good offer, a closer inspection of what was included presented a few questions worth asking. Digging into the “terms & conditions”, I discovered that this offer excluded many of the … Read moreAre you ready for ERP?
I picked up a pack of vitamins today and noticed the batch number “020616” and use by “SEP 20” on the label. This is something I consume, so I rely on it being fit to consume. The company that produced it does their best to ensure that it is fit to consume. However, if something … Read moreTraceability – knowing where it came from and where it went
Recently I was looking at different ways of calculating safety stock and one of the calculations I looked at used “average lead time”. It occurred to me that lead time is used a lot in supply chain calculations. So, what does it really mean, and should it be recalculated after every delivery? The simple definition … Read moreWhat should lead time mean?
Setting Key Performance Indicators (KPIs) is sometimes seen as an art, because many companies find it hard to decide on what to measure and while others have several KPIs, they may not be the right ones. Many years ago, I worked with a warehouse manager who needed help with one of his KPIs. His company … Read moreBeware of focussing on the KPI and not the objective
Insofar as risk and operational pain are concerned, performing a stocktake rates very high on both counts. Many organisations recognise that if they perform stocktakes badly, it will have significant impact on their general ledger, inventory, and warehouse management system. There are two basic stocktake types: A full stocktake: often referred to as a ‘stock … Read moreBenefiting from stocktakes