Creating Supply Chain Excellence
The Tompkins International Blog
By Cris Anderson
Project Consultant, Tompkins International
When considering any material handling equipment, the size of the products you will be moving is very important. Knowing what the size of the item to be conveyed, lifted, moved, or stored allows you to select the right equipment for the job.
This means that dimensional data in the item master data table is very important. Many companies have incomplete or out of date data in their item master and it can hold them back from selecting the right material handling equipment for the task. For example, when considering a carton conveyor system with rollers, it’s important to know the dimension of the cartons to be conveyed. Cartons that are too short will get stuck between rollers; if they are too long, they can jam on curves; if they are too wide, they won’t fit between guide rails. If this information is not readily available, you may find that there are many cartons already in the warehouse which can’t be conveyed, adding more work to the system. Similar situations happen with storage systems where product may not fit in the designated location if the warehouse management system is directing putaway without knowing how big the product is.
What should be in the item master in regards to dimensional data? Ideally, the more information you have the better off you are. Having pallet, case, and unit level length, width, height, and weight can all be important. Other relevant information, such as the number of cartons that fit in one tier on a pallet, and how high they can be stacked (ti-hi), is also useful information to have on an item master. If some products need special handling or storage, a flag denoting such can be added. In the case of conveyor systems, a conveyability flag is useful to identify items that do not meet the requirements for dimensions or aren’t stable on conveyor.
If your current item master is not up to the standard you’d like in regards to dimensions, there are several ways you can overcome this. The lowest investment option is to use a tape measure and physically measure every product that you currently have as well as new items as they come in. This is a time consuming and error prone method. More commonly, a company will use a device like a Cubiscan to automate the process. These automated dimensioning systems can even be rented for a short term project to add dimensional data to the system.
By keeping an updated item master, with accurate and complete dimensional data, you will be able to select and size material handling equipment that meets your needs.
By Tompkins International Staff
Technology magazine CIOReview has recently recognized Tompkins International as one the 20 most promising logistic tech solution providers of 2016. The list is an annual catalog of 20 companies that are at the forefront of providing logistics solutions and impacting the marketplace.
“We are happy to announce Tompkins International as one among the 20 Most Promising Logistics Tech Solution Providers 2016,” said Jeevan George, Managing Editor of CIOReview. “Tompkins International’s advanced data analytics tools equip shippers and freight forwarders to improve performance by making more informed shipment decisions based on their own shipping histories.”
CIOReview uses a distinguished panel comprising of CEOs, CIOs, CTOs and analysts including the CIOReview editorial board to shortlist the companies that are at the forefront of tackling the challenges in the logistics space. The panel focuses on the vendor’s capability to fulfill the needs of manufacturers through supply chains that support core business processes of various industries.
By Jim Tompkins
CEO, Tompkins International
Verizon has acquired Yahoo. This acquisition cost Verizon $4.8 billion. This price includes Yahoo’s core business. Yahoo shareholders still have an estimated $31 billion in investments in Alibaba. In addition, there are also investments in Yahoo Japan and a small portfolio of patents remaining.
As I stated on June, 9 2016, Verizon acquired AOL, Inc. last year and by adding Yahoo, Verizon could move further into the digital advertising business. For Verizon, buying Yahoo would be consistent with its new mobile and video strategy. This relies on offering free content and monetizing it through advertising. Verizon considers Yahoo to be the one way ticket to valuable ad technology. Many think that Verizon is interested in utilizing Yahoo’s live-streaming video technology in order to increase the data usage of its nearly 103 million wireless customers.
The “Verizon play” is to merge Yahoo with AOL and create the number three platform for online advertising after Google and Facebook. With the Yahoo deal, Verizon will be able to offer more robust services to Verizon customers and advertisers. This is very interesting considering Yahoo considered buying both Google and Facebook in the past.
In the end, this will bring a huge amount of content: news, sports, and finance to Yahoo’s one billion monthly visitors.
It has been interesting watching this deal unfold and writing about the “Yahoo Yard Sale” over the last several months. As I have stated, “a deal is anticipated to take place this summer. Watching how the businesses unfold will be amazing. I anticipate the outcome of these events to have major impacts on eCommerce in the United States and crossborder. It will also create major transformations in supply chain logistics.”
By: Jim Tompkins
Fifteen years ago Steve Jobs asked the question, “Is Yahoo a technology company or a content company?” Ten years ago Yahoo was unable to answer the technology vs. content question. Four years ago Marissa Mayer joined Yahoo and without answering the question began a journey of acquisitions and a massive overhaul of Yahoo. July 18, 2016 Yahoo shared their latest quarter’s financial statement. Not a good report, as revenues for the second quarter fell 15% and operating profit fell 64%. Based on these results and the last six months of the “Yahoo Yard Sale” many believe the July 18 financial statement was the beginning of the end for Yahoo. Many are offering opinions on various things that were done or were not done to result in the sad demise of a business that at one point was viewed as the “Best of the Best.” The opinions being voiced include: executive turnover, activist shareholders, declining revenues, poor cost control, the prolonged Yahoo yard sale, etc. These are not the cause of the demise of Yahoo, but, rather the symptoms that indicate the demise of Yahoo.
It is important to ponder the loss of Yahoo magic, but it is not surprising. I stated in a presentation last week in New York City, “The demise of Yahoo is not unsurprising, it was predictable.” I went on to explain, to the group of retail executives, that strategy must always come before structure and structure must always come before implementation.
The basis of all successful businesses is Strategy-Structure-Implementation (SSI). The basis, the cause, of the demise of Yahoo is the failure to execute on SSI. For the last ten years at Yahoo we see structure and implementation, but no strategy. At the highest level a strategy must answer the question, “What business are we in?” This goes right back to the Steve Jobs question, “Is Yahoo a technology company or a content company?” This question still has not been answered. Why are people surprised that this great company will soon be selling its assets and becoming a footnote in the history books of content companies or should they be in the history books of technology companies?
By Tompkins International Staff
We are less than two months away from the premium Tompkins International Supply Chain Leadership Forum 2016 (SCLF). We want to provide some more exciting details about the SCLF being held in Minneapolis, Minnesota August 29th through August 31st. This year you will be joining our CEO, Jim Tompkins, along with 200 other supply chain executives and experts. You will have the opportunity to connect with one another, share insight, and learn together due to the remarkable lineup of events and speakers taking place throughout the two days; allowing all to connect, share, and learn.
International supply chain thought leader Jim Tompkins will be our keynote speaker. Sharing his views on supply chain excellence, what you need to know to make your supply chain even more competitive in 2016 and moving forward.
Learn from Jim Tompkins the difference between:
Also, learn about the 4C’s of supply chain change, transformation, and reinvention:
Jim Tompkins was selected as the 2015 Frank and Lillian Gilbreth Industrial Engineering Award recipient by the Institute of Industrial Engineers, IIE. Two years ago he released The Alibaba Effect video that has been viewed by over 350,000 people and has helped introduce the world to ecommerce. Most recently, he released Respond To The Titans video discussing the importance of the Titans’ supply chain logistics and why a business must respond to Alibaba, Amazon, and Walmart by creating a competitive supply chain strategy.
Registering for the Tompkins International Supply Chain Leadership Forum 2016 is easy, we hope you will join us to connect, share, and learn together.
Please contact Patty Trocchio at email@example.com for registration information.
By Tompkins International Staff
The entire Tompkins International team has recently been recognized by SupplyChainBrain.
SupplyChainBrain has released their 2016 Great Supply Chain Partner list; Tompkins International is honored to be included in the list of 2016 Great Supply Chain Partners.
“Each year, our list of 100 Great Supply Chain Partners features a select group of companies whose customers recognize them for providing outstanding solutions and services,” says Brad Berger, Publisher, SupplyChainBrain.
“Over the course of our six-month online poll, we ask supply chain professionals to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance.”
“This year we received literally hundreds of nominations for solution providers in every aspect of supply chain management.”
Tompkins International has been recognized for reliability, excellence, value, expertise, problem-solving, continuous improvement, support, positive attitude, global reach, and strong leadership. “We are happy to be recognized by SupplyChainBrain as a 2016 Great Supply Chain Partner. We are both a local and an international firm, experienced in all supply chain needs with no boundaries attached,” Jim Tompkins, CEO, Tompkins International.
Stated by SupplyChainBrain: “this is our 14th year of celebrating 100 Great Supply Chain Partners. Tremendous growth and evolution over the years has been seen in the quality, quantity, and diversity of companies nominated for the “100 Great” award. According to loyalty and highly satisfied clients, Tompkins International has performed well.”
In 2016 Tompkins International was also ranked top in Gartner’s supply chain report for, supply chain strategy development, supply chain network design, sales & operations planning (S&OP), and the logistics process with a focus on third party logistics (3PL). We were highly noted for wide geographical recognition including, North America, Western Europe, China, Japan, and the Asia Pacific region.
Our whole team here at Tompkins International is honored to be recognized by these two highly respected publications.
By Gene Tyndall
Executive Vice President, Tompkins International
Among the issues surfacing related to the impacts of the British vote to exit the European Union are questions regarding changes in supply chains, particularly by those owned by U.S. companies. Although the majority of immediate concerns has been driven by questions related to financial markets, as well as, of course, the political chaos occurring both in London and Brussels, business interests are also correct to be concerned. After all, the original intent of forming the EU was the creation of the “Common Market” and supply chains have evolved in response to this goal. Inasmuch as the U.K. and the U.S. are primary trading partners, let’s consider how U.S. companies supply chains will be impacted should the exit be final.
Business supply chain impacts raise questions around BUY (purchasing), MAKE (where to produce), MOVE (freight), DISTRIBUTE (get to customers), and SELL (who buys, how, and why). Our initial estimates should be considered near-term (what to expect now) and over time (what to expect as the exit plays out).
First, we should acknowledge that supply chains have many components: customers, suppliers, operations strategy, products and markets, physical, business processes, technologies, people/skills, and capital investment. They also have implications for domestic business as well as international (cross-border) business. Further, there are domestic companies or business units that operate within the U.K. and MNC’s that either sell or source within the U.K.
One of the key business concerns, especially impacting supply chains, is uncertainty and/or risk. As EU leaders debate the timing of the exit, the next 3-4 months are very likely to produce “profit warnings” due to the considerable uncertainty. This will especially be true for those companies that rely on international sourcing, or sell a high percentage to the British population, or British companies that rely heavily on EU markets. The uncertainty around the timing and necessary modifications of Trade Agreements, Customs Laws, Duties, and Tariffs, will impact sourcing, transportation, and distribution.
MNC’s that operate in the U.K. (or England) will be impacted through their supply chains with respect to any goods that are imported or exported. Moreover, those that have their European HQ in England will need to re-assess their locations.
Those that manufacture products in the U.K. – automotive, for example – will be impacted by the sourcing of components (global sourcing means importation), as well as the exporting of finished vehicles.
The selling of products (SELL) has experienced substantial growth in e-Commerce. For domestic sellers, other than the cost of goods, very little supply chain impact will be seen on online ordering. For those selling international goods, however, the costs of cross-border goods will be impacted.
Other than the costs of goods sold, we should not expect high levels of negative impacts on consumer goods and pharmaceuticals. Consumers are the key to economic growth, and the demand for competitively priced products normally results in meeting the needs, in one way or another. But, for those companies that have Euro-market Distribution Centers located in the U.K., there will be serious questions about inventory locations. Moreover, there are numerous other product categories that will be impacted, and perhaps seriously.
In the near term, we are advising client companies to begin to plan, and expand monitoring and tracking, and even start re-designing Logistics Networks. We also advise, though, to not take hasty actions about investment, or disinvestment, until more is known about the timing of the exit and its ramifications. Planning for contingencies – such as that associated with Supply Chain Risk Management – is the right action now.
With respect to overall supply chain strategy with Brexit, therefore, our advice for client companies is to think, question, and plan for when the exit changes are implemented. Capital investment or disinvestment, in the U.K., should be postponed until made necessary by the new Trade Agreements, Customs Laws, Duties, and Tariffs that impact the company’s supply chains within the country.
By Bruce Tompkins
Partner, Tompkins International
Leading change is not easy. One of the difficulties is gaining support from staff members. Communicating the rational for change and repeating your message is important in order to gain staff support.
The first step is to begin on a positive note and be convinced yourself that the change is for the best.
Leaders must acknowledge mistakes and accept accountability.
Ask questions, instead of orders.
Praise and encouragement are keys to tackling change.
Expectations are challenging during a period of change.
Leading change is difficult; it takes time, effort, and good communication. It is a learned skill therefore; improving your capabilities is possible. Most staff members want to do the right thing although, there are times staff needs a push in the right direction. If you fail in your attempt to lead a successful change, learn and try again.
By Bruce Tompkins
Partner, Tompkins International
Revenue from eCommerce is growing rapidly. Today, eCommerce typically makes up 10-15% of revenue for retailers. This is great news, even if you are a brick & mortar firm, eCommerce also leads to in-store sales. Even Amazon has recently opened its own brick & mortar store in Seattle. The retail giant understands that in order to be successful in retail you must create a seamless experience for customers, both online and in stores.
Tompkins International conducted a December 2015 survey in which retailers and consumer-packaged-goods companies made up 74% of respondents, with normal distribution of companies by size (in revenue) from less than $250 million to over $25 billion. The survey found that over 66% of companies do not use Amazon for selling and fulfillment purposes. However, we at Tompkins International see more and more companies turning to Amazon for selling and fulfillment.
As of December 2015, SKUs available only online still represented 23% of all SKUs and a surprisingly large percentage (25.1%) of SKUs are only available in stores. This being said, nearly 50% of SKUs are available online and in stores and 45.2% of survey respondents predicted that the number of available online and in-store SKUs will increase.
The bottom line: eCommerce is trending significantly up, which provides an opportunity for those who are ready for the challenge. eCommerce success largely depends on marketplace traffic. In the U.S., that may mean Amazon, unless other alternatives are explored. The data shows that many companies have a lot of work to do to be competitive in the online market. eCommerce is here to stay and retailers need to make use of this opportunity immediately.
By Greg Kreis
Principal, Tompkins International
Nobody likes replenishing pick locations. It is a non-value added task that occupies labor and equipment resources without directly benefiting the process of completing orders. Let’s not even talk about case replenishment which creates an additional touch for each case. Actually, I think we should talk about it.
All too often we visit prospective clients who have made the decision to limit replenishment to pallet quantities or not replenish at all because it is viewed as a waste of resources. However, willingness to increase replenishment means a decrease in the size of pick locations which translates into reduced travel distances for order selectors. What is the right set up for your operation? That depends.
Let’s look at a simple example to illustrate the type of evaluation that is necessary to make the right decision. We have 100 items that each ship 6 order lines per day (600 lines per day total) which equates to 1 full case per item per day. The product can either be picked from pallet locations or carton flow.
You can see with the examples above that using carton flow pick location and replenishing in case units can result in a reduction of man-hours. While, this is not always the case, it is certainly worth considering when deciding which type of operation you will use for the next 5 to 10 years.
The moral of the story is, sometimes tasks that look cumbersome or create extra touches can actually benefit the overall operation. Replenishment of pick location is one of those tasks.