The 3Vs of the supply chain
Visibility, velocity, and value matter, says Splude.; Integrated solutions save time, money, says Cinpinski.
By Staff -- Modern Materials Handling, 2/1/2000
When it comes to the supply chain today, there are three Vs that deliver a competitive edge, says John Splude, chairman and chief executive officer of HK Systems.The first, he says, is visibility. "Companies need greater visibility of inventory from manufacturing through distribution and on to the consumer," Splude adds.
The next is velocity. Inventory needs to move through the supply chain at ever higher velocities. Splude says "You have to be able to maximize the delivery response."
The third V is value. A company must offer greater value than others in its product, its supply chain's ability to satisfy customer needs, or something else.
Getting all three Vs is no easy task. However, integrated materials handling and information systems are increasingly becoming the preferred solution, according to Splude and Larry Cinpinski, the newly named president and chief operating officer of HK Systems.
"Getting away from point solutions and looking at integration allows a company to build the best solution," says Cinpinski.
Furthermore, integrated solutions save companies both time and money, he adds. "When a company buys hardware and software separately it typically winds up with some duplication and a certain amount of extra customization. The big savings come in the original design and how all of the components interoperate," says Cinpinski.
Along with Cinpinski's appointment, HK reorganized its materials handling equipment and supply chain software businesses along vertical industry lines. Initial focus is on e-commerce and third-party logistics providers, automotive/transportation, and paper/publishing. In addition, says Cinpinski, several new verticals will be added this year. These include food/beverage, manufacturing, pharmaceuticals, chemicals, and consumer packaged goods.
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