What One Thing Can I Do to Improve My Operations?

I am often asked from executives I meet, “What can I do to improve my operations?”My response is generally the same every time, “Are you partnering with your supply chain vendors?” Most often their response is “Yes” and they chuckle a bit, implying that they thought my answer would have been more profound. I continue and after a few minutes of discussion they quickly realize that they really aren’t partnering with their vendors at all. What they are doing is requesting services and getting those services in return. Seems logical, right? Well, what they are missing are valuable recommendations a true partner provides. These recommendations help reduce time-to-market, increase store productivity, and reduce print and distribution spend. By listening to your vendors you’d be surprised at what you can learn and how much you can save.

 

Creative agencies, printers and fulfillment vendors are experts at what they do. Their knowledge and expertise can significantly reduce your variable costs, and in this tough economy that’s important savings you can redeploy elsewhere. Below are two examples of valuable suggestions you could be receiving from your partners. Be sure to contact your vendors today to obtain their valuable recommendations.

 

Consider utilizing 2D barcoding on your serialized or lot indentified products to simplify tracking and reducedistribution spend. Standard 1D barcodes are limited in the amount of information they can hold. To track additional information one must utilize multiple 1D barcodes on a single item. Multiple barcodes slow down the fulfillment cycle and make it less efficient. 2D barcodes can hold significantly more information than a 1D barcode. They decrease the time it takes to scan an item, which reduces the labor required to fulfill your program. Reduced picking times mean lower picking fees and money saved.

 

Meet with your fulfillment partner to obtain their 2D barcode requirements. Then pass this information along to your printer. Your printer should have software that allows them to easily add 2D barcodes to your materials.

 

Examine your orders to determine the average quantity purchased. Does that quantity correlate with how you are being billed by your fulfillment provider? For example, if your typical order quantity is five and your printer is bundling packs of ten, your fulfillment provider must open a pack and remove the five items for the order. The additional time your fulfillment partner spends picking the orders increases their rates. Instead, request that your printer bundle the packs in five in order to reduce your fulfillment partners rates and save you money.

 

Analyze your orders and determine what quantity is typically purchased. Then review how your printer bundles your items. If those numbers don’t match up, reconsider changing how your items are bundled.

 

Want to learn more? You can contact Brian Albright at ask@archway.com. 

 

As Director of Operational Best Practices for Archway, Brian focuses on the delivery of cost reduction initiatives across the enterprise. Brian has more than 15 years of project delivery and operational effectiveness experience. Prior to joining Archway, Brian held various Director positions at Best Buy Corporation where he drove advertising effectiveness, improved processes and managed inventory levels for entertainment software. Brian also authored two patents while employed at Best Buy; Intelligent Sourcing and Intelligent Dashboards. Additionally he designed and implemented an Automated Assortment System to improve inventory turns as well as an Advertising Information Management System to support improved Marketing ROI. Brian also cofounded Optimal Advantage, a Retail Consultancy Practice.