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KNOWLEDGE LIBRARY

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MOST READ

27Jun

Warehouse Occupancy Percentage

Optimal storage utilization helps enforce healthy inventory management. In our early work with Honda their...

02Jun

Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity...

02Jun

Inventory Carrying Rate

The inventory carrying rate (ICR) is the percent of the unit inventory value used to...

26Jun

Inventory Activity Profiling & Data Mining

Suppose you were sick and went to the doctor for a diagnosis and prescription.  When...

27Jun

Inventory Performance Measures

Inventory performance measures include financial, productivity , quality, and response time indicators for evaluating the efficiency and...

The Supply Chain Impact of a Single SKU

The impact of a single SKU working in a supply chain is greatly underestimated. In a recent client example we established that each “little” SKU was….

Ordered 1,934,000 times per year….

o   There were 1,212,000,000 SKU-Orders in a year costing $30,000,000 or $.04 per SKU-Order. Removing one SKU would potentially save $60,000.

Delivered 1,815,358 times per year…

o   There were 907,679,000 SKU-Deliveries in a year costing $91,000,000 or $.10 per SKU-Delivery. Removing one SKU would potentially save $182,000.

Merchandised 1,063,463 times per year….

o   There were 500,908,801 SKU-Pulls in a year costing $55,246,000, or $.09 per SKU-Pull. Removing one SKU would potentially save $110,000.

Picked in warehouses 120,000 times per year….

o   There were 12,000,000 SKU-Picks in a year costing $65,000,000 or $5.42 per SKU-pick. Removing one SKU would potentially save $130,000.

Made or bought 60,000 times per year…

o   There were 6,000,000 SKU-Lots in a year, costing $47,000,000 per year.

HANDLED IN SOME WAY 7,000,000 times per year.

o   REMOVING ONE SKU COULD POTENTIALLY SAVE UP TO $480,000/year; TEN SKUs $4,800,000/year; ONE HUNDRED SKUs $48,000,000/year

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