SCMAP Perspective #245

Published in Port Calls, July 5, 2010

QUANTITATIVE APPROACHES WORKSHOP

Fax 551-3207

Email lizaalmonte@yahoo.com.ph

By Ed Sanchez
SCMAP Executive Director

Quantitative Approaches to Logistics Planning Workshop, July 31

This is a five hour workshop on Forecasting and Distribution Network Planning, to be conducted at the Astoria Plaza.

Target participants are

• Logistics staff, supply chain analysts
• Managers of logistics, manufacturing and other SCM functions
• Other supply chain and logistics staff, or staff in related and interface functions (finance, distribution planning, inventory management, transportation, etc.) who could be involved in a review of the company’s SC processes

The workshop will cover two tools that you might use to re-design your distribution network and improve your demand forecasts. Computer workshop topics will be:

• Forecasting Techniques – Basics of forecasting, types of forecasts, forecasting approaches, ‘recommended techniques’, estimating probable forecast error, steps in preparing a forecast, importance in logistics planning
• Warehouse Site Selection Using Optimization – Issues involved, cost items considered, relevant constraints and other factors, modeling the problem, using Excel to solve the problem, interpretation of model results    

The speaker / workshop leader is Sam Cruz, an operations research expert and consultant. He is currently Sr. Manager, Supply Chain Solutions, at IDS Logistics,

and formerly Operations Research Manager at San Miguel Corp.

Fees : P5,000 for SCMAP members, P6,250 for non-members. 10% discount if paid by July 9. 5% discount for 3 or more participants from same company.

Mini-Survey in Warehousing

Over the early years after the turn of the century, we did mini-surveys on warehousing practices among participants in our past warehousing seminars, up to 2006. In more recent years, however, practices have been changing, particularly on technology. Thus I decided to do another mini-survey at our recent warehousing seminar, held on June 17 – 18, 2010.

All 26 participants responded to our survey, although not all respondents answered all groups of questions. Some of the responses include the following. Total using / total answers exceed the number of respondents due to multiple answers.

Storage equipment		(22 respondents)
	Selective pallet racks	11
	Block stacking	6
	Drive in racks	5
	Mobile aisle racks	2
	Shelving	4
	Bulk solids in piles on floor or yard	3
	Cantilever racks	2
	Storage drawers	0
	Flow racks	0
	Push back racks	0
	Carousels	0
	ASRS	0
Pallets		(18 respondents)
	Wood	14
	Plastic	6
	Metal	1
Lift trucks type		(11 respondents)
	Reach	6
	Counterbalanced	8
	Side loading	3
	Turret	0
Other equipment		(26 respondents)
	Pallet jack	18
	Conveyors	7
	Cranes	4
	AGVS	0
Inventory taking count procedure		(15 respondents)
	Periodic count	10
	Cycle count	10
Inventory taking accuracy		(23 respondents)
	Accuracy < 90%	3
	Accuracy 90-95%	3
	Accuracy 95-99%	8
	Accuracy 99-100%	11
Technology adoption		(24 respondents)
	Inventory records computerized	19
	Using WMS	11
	Using bar codes for logistics	10
	Using RF technology	6
	Doing cross docking	6
	Using sortation system	2
	Using pick to light system	0
	Other technologies	6
Problems		(24 respondents)
	Damages, breakages, spoilage	11
	Lack of space / crowded	7
	Lack of employee training	5
	Pilferage	3
	Poor inventory record accuracy	3
	High cost of space rental	2
	High employee turnover	2
	Accidents, lack of safety	1

Indications gleaned from the above, as compared to our past surveys, are:

• Selective pallet racks and pallet jacks continue to be popular
• Some companies still rely on block stacking. This represents opportunities for rack suppliers.
• Some companies still rely on periodic counting
• There has been improvement in inventory record accuracy. This is obviously the effect of the use of bar codes, RF and cycle counting
• There is increasing use of bar codes for logistics (bar codes on racks, pallets, cartons, as opposed to bar codes on the retail pack).
• More companies are doing cross docking
• Pick to light or other picking technologies have not made inroads.

2010 SCMAP Conference

2010 Supply Chain Conference – It is all systems go for this year’s supply chain conference and exhibit, with its theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. This is SCMAP’s biggest event of the year. Sponsorship and advertisement packages are still available. Those interested are urged to book early or now in order to be included in the initial brochure.

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com.  Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org

July 2, 2010