Inventory Mgmt with Frequent Orders

Amazon’s Thousand Suburban Warehouses

Amazon plans to open 1,000 small delivery hubs across the United States, with plans to increase this number to approximately 1,500.

The move is to further the company’s goal of same day delivery to customers. Walmart and Target have been using their network of stores to provide same day delivery, with Walmart implementing Walmart+, its own version of Amazon Prime.

Amazon’s small delivery hubs are planned to be about 200,000 square feet, one-quarter the size of the company’s fulfillment centers. Moreover, these […]

By Ross L. Fink, Ph.D.|2020-11-02T03:10:14+00:00November 3, 2020|Tags: facility location, forecasting, inventory management, location, logistics, supply chain management, transportation, warehouse|

What Pandemic? Agile Systems Help Sephora Gain Market Share

Sephora’s early investments in flexibility have paid off.

Sephora, like most retailers, had to close its stores during the pandemic. Whereas many others struggled to build or shore up an online presence, Sephora shifted gears with little effort. It relied on its inventory system linking brick-and-mortar retail and e-fulfillment facilities as well as on a distribution network with rapid access to most zip codes. Not only did the company meet customers’ expectations, but it also increased market share.

Video Spotlight:

By Corinne M. Karuppan, Ph.D.|2020-09-05T16:22:38+00:00September 8, 2020|Tags: ERP systems, inventory management, logistics|

Inventory Throughput is Key for E-Commerce Warehouses

The rise in e-commerce has been accelerated by the COVID-19 pandemic.

E-commerce requires three times the warehouse space over brick-and-mortar retail operations. A real key to managing a warehouse efficiently is inventory throughput. Wayfair, for example, focuses on throughput and uses a chase demand strategy to staff warehouse operations to obtain efficiency.

Video Spotlight:

Inside An E-commerce Warehouse (Oct 12, 2016, NDTV)
E-Commerce Automation at Newegg’s Robotic Distribution Center (Oct 16, 2018, […]

By David Little, Ph.D.|2020-08-02T01:53:51+00:00August 1, 2020|Tags: aggregate planning, chase, coronavirus, covid-19, sales and operations planning, throughput, warehouse|

Effect of Chinese New Year on Inventory Management

The Chinese New Year brings manufacturing slowdowns in China. United States companies must plan on being proactive in managing supply by making early purchases and scheduling transportation before the slowdowns begin.

Building buffer inventory in the United States as a result of early purchases means storage capacity in the United States must be managed proactively as well.

Video Spotlight:

How to Avoid Producing and shipping Delay by the Chinese New Year (Angus Zhou, December 19, 2017)

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By David Little, Ph.D.|2020-01-28T05:51:54+00:00January 27, 2020|Tags: capacity management, procurement strategies, safety stock|