Inventory Management

Transcription

1 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices 1 PRECONFERENCE SEMINAR RFID for Warehouse and Inventory Management Linking RFID to Inventory-Management Best Practices (Professor UQAM, Co-founder Academia RFID) 2

2 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Your presenter, Ph.D Professor, Department of M&T, Université du Québec à Montréal - UQAM's School of Management [email protected] Co-founder, Academia RFID com/ Training & certification RFID Journal Live since Preconference seminar Agenda RFID for Warehouse and Inventory Management 11h30 AM: Linking RFID to Inventory Management Best Practices 12h15 PM: Targeting the Correct RFID Techno. for the Right Project 1h00PM: Lunch 1h45 PM: Key Steps in Building an Inventory Mgt. RFID Solution: Build Your Own RFID Portal 2h30 PM: Designing Your RFID Solution 3h15 PM: Break 3h30 PM: Building Your RFID Business Case 4h15 PM: Preconference Seminar Conclude 4

3 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Objective of the presentation Understand how RFID ties in with warehouse inventory & SCM Identify how RFID facilitates warehouse best practices Position RFID as an enabler of more efficient W&IM What is Inventory Management Inventory is the stored accumulation of transformed resources (e.g. materials, information, and money) Inventory management is the activity of planning and controlling accumulation of the resources that flow through supply networks, operations and processes Slack et al., Operations and Process Management, Principles and practice for strategic impact, 2006

4 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices So RFID s goal is to reduce inventory? 7 Inventory Management is finding the right stock balance Vs Stock outs = customer + losses Excess stocks = costs + waste

5 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Inventory Management is finding a balance between extremes Excess stocks Shareholders Customers Stock outs Customer satisfaction Inventory & Operating costs but there is a cost to inventory Ties up money (working capital) Can become obsolete Can be damaged or deteriorate over time Can be lost or expensive to retrieve Can take up excessive storage space (vs. its value) Can involve high admin. & insurance costs Etc.

6 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Inventory Management & RFID The underlying objective of inventory management is to Increase customer service Reduce inventory costs Reduce operating costs SO HOW CAN RFID HELP? Warehousing is in the supply chain about speed to market, total cycle time reduction As retailers look to increase sales, they will focus less on 'least cost supply chains' in favor of 'best managed supply chains. while a retailer may save $.10 to move a pair shoes by optimizing their transportation they are missing out on $40.00 in gross margin opportunity by improving their in stock levels and therefore driving increased sales. It is about improving the customer experience. Merchants which are focused and reducing their reaction time," (time an item is sold to the time it back on the shelf ) will win the retail game. In 2012 and beyond it needs to be about speed to market, total cycle time reduction which eliminates variability, and therefore reduces inventory." Source Jim Barnes, president of consulting firm envista Predictions from Supply Chain Gurus for 2012

7 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices What business people want Value! They want a solution to a problem They want information i they can use to improve the way they do business They don't care where the information comes from or how it was gathered since it is accurate They want visibility across the warehouse and the SC They want value! They don t want to buy (RFID) technology What business people want Value: An fully integrated working solution

8 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices What business people want Visibility: Capturing data, translating it into information accessing this information! What is (EPCIS) Visibility Data? Visibility on events dimensions RFID Event EPC (SGTIN) :ACAD EPCs (SCCCs) :ACAD :55:00 EPC (GLN): ACAD Receiving 17.4 deg Source: adapted from Using EPCIS Data Sharing for Full Supply Chain Visibility K. R. Traub, Ken Traub Consulting LLC,

9 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices From data capture to information management From (inventory) data capture to (inventory) information management What: When: 10h30 AM Where: (X, Y) Why: Shipping to XX How: 17 deg. Cel With RFID data, it's not just what you know; it's what you do with what you know Warehouse management design A solution for your specific needs...

10 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Warehouse pressures- actions & RFID Confirm transactions with AIDC (RFID) Increase the use of (RFID) mobile devices for direct order picking Source: Graph from Aberdeen Group, 2012 Achieving Corporate goals through effective WM & logistics A conbination of strategic actions, organisation capabilities and enablking tecchnologies Source: PACE Model from Aberdeen Group, Jan. 2012

11 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Warehouse Mgt. best practices & RFID potential application - Obtain ASN for inbound deliveries - Reject unplanned receipts - Directly enter receipt into computers - Put away items immediately after receipt - Eliminate the receiving function (direct delivery to prod.) - Repackage incoming items into increments ordered by customers - Assign docks on the minimum warehouse travel time - etc See: Bragg, S. Inventory best practices, 2004 RFID as an enabler of more efficient Inventory Management Provide information to support key decisions (e.g. order quantity) Ensure better inventory management (e.g. FIFO, inventory turnover, etc.) Facilitate physical counting Reduce the impact of probabilistic demand Facilitate reordering approaches

12 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices But Inventory Management can be more From increasing your competitiveness to strategic differentiation Labor Management Task Management Slotting Warehouse Management strategies & RFID potential application Load Building/Cubing Advanced Picking Advanced replenishment Automated Min/Max replenishment, demand based replenishment, Top off repl.; etc Source: Adapted from Aberdeen, High Performance strategies for Optimizing the warehouse, 2007

13 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Inventory Management strategies & RFID-enabled 2Bin Kanban system RFID 2Bin Replenishment System ERP/WMS Source: d.net/ Inventory Management strategies & RFID potential in advanced replenishment Source: Mobile Aspects Source: Terso ( ) real time data improves service, streamlines inventory, improves expiration & recall management and eliminates the need to maintain excess inventory no reporting required! Source: Wavemark 1. WHO opened the cabinet 2. WHAT item has been removed 3. At WHAT time 4. For WHICH patient it is intended) 5. Trigger a Replenishment!

14 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Warehouse management design From the Smart Container to a Mobile Warehouse! A Plant onsite tool rental trailers New Business model! Fully automated system to provide 24 7 access to the exact equipment needed Billed for what is used Source: ODIN technologies on Note: ODIN, Acquired by Quake Global, 2013 See: and Warehouse management design Bring the shelves to the workers automating order fulfillment ( ) Instead of being stored in static shelving, flow racks or carousels, products are stored in mobile inventory pods in the center of the warehouse while operators stand at inventory stations around the perimeter Sourcehttp:// overview/

15 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Inventory/Warehouse Management on RFID Journal warehouse management Useful references A more exhaustive search Classics RFID news Social networks Standards association RFID Vendors Case_Studies.aspx US- EN/Business+Product+and+Servic es/rfid/deployments Etc. 30

16 (ESG UQAM; Academia RFID), Linking RFID to Inventory Management Best Practices Thank you! UQAM, School of business 315 Ste Catherine est Local R 3570 Montréal (Québec) Canada H2X 3X2 Tel: (x 2429) Web site: Academia RFID 9916 Côte de liesse, Montréal QC Canada H8T 1A1 Tel: Fax: Web site: 32