Did you know that, for the first time since year 2000, expenditures linked to logistics surpassed by 10% the GDP of the U.S. in 2008? This data is provided by the ‘State of Logistics Report’ published by the ‘Council of Supply Chain Management Professionals’ at “ http://cscmp.org. An average of 60% of these expenses is borne by the transportation industry. The hike in fuel prices has had a strong impact on consumer goods thus generating an increase in costs. Our grocery basket does cost us more! We also learn through the media that since the end of 2008, government service charges have increased and the number of people having problems with balancing their budgets will be even more at risk.
The true salary of those storekeepers
April 08th, 2010Whether a business is big or small, the concept of replacement parts is applied according to the principle of never being in short supply. How many times have we heard this? Do you know how much this could cost your business? Abitibi-Bowater was undergoing its restructuration process when a great quantity of electric motors were found in its inventory. Enough motors to supply all its factories for a twelve-year period. ’Man’ is an emotional being that does not enjoy being caught short.
A storekeeper is not different from other people. He wants to avoid outbursts from his boss, colleagues or friends resulting from a shortage of parts or backorders. For him, the best way to ensure availability of parts (service wise) is to increase inventories without taking into account the demand, criticality or costs. However, did you know that it is possible to increase the level of serviceable parts and at the same time decrease the entire inventory?
Today’s high performance data processing systems can achieve mathematical calculations that can be applied to inventory management. Access to an expert in inventory management is now available at your fingertips and he also speaks your language.