KNOWLEDGE LIBRARY

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12Jun

Unit Fill Rate (UFR)

The unit fill rate (UFR) for an item is the portion of the total number of units...

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...

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...

Merge-in-Transit

Merge-in-transit is a supply chain flow strategy made famous by Dell Computer. The basic merge-in-transit concept is to use the transportation function (vs. warehousing) to assemble the components of an order manufactured on demand in disparate locations.

 

 

Example Merge-in-Transit Flow

 

This logistics strategy at one time allowed Dell to achieve return on invested capital rates in excess of two times their closest competition. Some of the keys to success for them included:

 

  • Direct internet sales
  • Supplier owned inventory held less than 15 minutes away
  • Supplier City with vendors on-site performing inventory management on Dell’s behalf
  • The merge-in-transit flow concept
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