DC Velocity - March 2013

Mispicks cost warehouses big money

A single mispick in a warehouse or DC might not seem like a big deal, but over the course of a year, the cost of such errors can quickly add up. According to the results of a survey conducted in late 2012 for Intermec, a developer of mobile data-capture solutions, a single mispick costs a warehouse approximately $22. Based on the average number of errors reported by respondents to the survey, mispicks in a single distribution center amount to $389,000 annually, on average.

More than half ( 52 percent) of the 250 respondents reported a pick accuracy rate of less than 97 percent. On top of that, 19 percent do not measure the costs of mispicks in any way, which suggests that the impact of such errors on the supply chain may be even greater than reported, Intermec said.

Survey respondents indicated that they consider achieving high pick accuracy rates to be key to improving profit margins. Forty-seven percent said that picking was an area where cost savings could easily be achieved. In addition, 59 percent of respondents said they were using a “perfect order” metric to gauge picking accuracy and identify areas for improvement.

The research surveyed 250 supply chain, warehouse, and distribution managers from a range of industries in the United States, the United Kingdom, France, and Germany. ;

Several global economic and consumer trends are likely to disrupt modern business practices and add unprecedented complexity to supply chains, creating challenges for supply chain managers. That’s the premise behind the new book Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage.

The book examines such trends as population growth and migration, the growing buying power of rising economies, geopolitical activities aimed at protecting natural resources, and environmental and climate change. It also outlines strategies for dealing with challenges like managing supply and demand in a world marked by seismic demographic and economic shifts, and discusses ways to secure the supplies needed for business growth despite resource constraints. In addition, the book addresses methods for selecting products, suppliers, and markets.

The authors are Chad W. Autry, associate professor of supply chain management, and John E. Bell, assistant professor of supply chain management, both at the University of Tennessee’s College of Business Administration; and Thomas J. Goldsby, professor of logistics at Ohio State University.

Global Macrotrends and Their Impact on Supply Chain Management is published by Pearson Education and sells for $79.99. ;

Book examines impact of “macrotrends” on supply chains

inbound

“Can’t miss” conferences on tap for spring 2013

If you want to be at the top of your professional game, you need to get out and hear what the experts as well as your peers have to say about the latest trends in our industry. Here are three upcoming events where you can do just that:

The Warehousing Education and Research Council’s (WERC) Annual Conference will be held in Dallas April 28–May 1. Keynote speakers include Hillwood’s Ross Perot Jr. and Chris Sultemeier of Wal-Mart Stores Inc. DC VELOCITY’S James Cooke will also be on hand to speak about “Six supply chain trends that will rock warehousing.” More than 80 sessions will offer practical information on warehouse operations, workforce management, security, regulatory compliance, technology, and sustainability. Attendees can also check out the latest products and services at the WERC WIRE trade show, which is held concurrently with the conference. ( www.werc.org)

The National Shippers Strategic Transportation Council’s (NASSTRAC) Shippers Conference & Transportation Expo is slated for April 21–24 in Orlando, Fla. ESPN’s Lee Corso and Matthew Rose of BNSF Railway will be the keynote speakers. Sessions will address legislative developments, pricing, multimodal transportation, and talent development. The program also includes shipper roundtables and “learning labs.” ( www.nasstrac.org)

The Transportation & Logistics Council’s 39th Annual Conference, held jointly with the Transportation Loss Prevention & Security Association, takes place in San Diego April 22–24. Sessions will address such topics as risk management and insurance, carrier and broker selection, and freight claims. A panel of transportation attorneys will discuss current issues and recent court decisions. Optional pre-conference seminars will cover claims, contracts, and legal issues in transportation and logistics. ( www.tlcouncil.org) ;