Stop flying blind

By Gary Forger, editorial director -- Modern Materials Handling, 8/1/2006

Modern runs its share of stories about the retail supply chain. Some of the more recognizable companies we've written about in the recent past include Blockbuster (Just the ticket for Blockbuster), Stop & Shop (Stop & Shop's fresh approach), CVS (New distribution prescription for CVS), Michaels (It's all about the supply chain), Kirkland's (Kirkland's: Consolidate and integrate and Kirkland's new home) and Ann Taylor (Ann Taylor: Upgrade with style and Taylored distribution).

That's really quite a range of products – videos, groceries, personal care items, arts and crafts, home décor and women's clothing. But regardless of the size, shape and value of the items, the story is primarily about moving products through the DC in synch with customer demand.

But that's only part of the picture. AMR Research just did a piece called, "Retail cycle time reduction: Still a work in progress." In part it said this: Many companies experience a dark period between the time that product leaves the factory to the time it hits the inbound DC. The complexities of generating product- or carton-level data out of the factory and maintaining virtual oversight through the freight and customs process have created this gap for many retailers.

Isn't that the truth. Visibility is not exactly a strong suit in a lot of retail supply chains. In fact, it seems many people think visibility is mostly a concept. But it doesn't have to be that way. The AMR story went on to say that many are exploring technology to increase visibility. And there is technology out there that can help from software to RFID and beyond. Do it right and completely and you will integrate upstream with downstream in the supply chain. But let's walk before we try to run.

Our Best Practices newsletter (to sign up click here) focused on visibility last month. For it, we talked to Bruce Strahan, president and CEO of The Progress Group. Strahan mentioned a very common visibility tool – the advance ship notice (ASN). He said that too few people are using ASNs. "In an age of opposing pressures to reduce inventory and improve fill rates, we really need to work on this component of inventory visibility," Strahan said. (Click here to read previous months' Best Practices enewsletters)

ASNs are established. They are reliable. They are proven. And they offer an opportunity to know what will be in your facility and when. Now don't get me wrong. I'm not saying ASNs are the panacea or address all of the issues with visibility. Clearly they are part of the answer.

What I am saying is there are common tools that are being overlooked that would provide a degree of visibility so many supply chains now lack. I just think it's time more companies admitted to themselves that they are flying blind and did something about it.