Today, Information technology (IT) plays a vital role in the field of textile industry. Any manufacturing unit employs four Ms that is, Men, Material, Machine and of course Money. To get organizational success, managers need to focus on synchronizing all these factors and developing synergies with in and outside organizational operations. With the increased competition, companies are taking support of IT to enhance its Supply Chain Management (SCM) and using it as a competitive edge. In short, many textile companies are leveraging the technological power to adding value to their business.
Supply Chain Management includes: sourcing, procuring, converting, and all the logistic activities. It seeks to increase the transaction speed by exchanging data in real-time, reduce inventory, and increased sales volume by fulfilling customer requirements more efficiently and effectively.
Why Textile Industries Need IT Support?
Lack of information on demand and supply aspects
Most of the decisions a manager takes are related to demand and supply issues. But unfortunately very few are able to get it, as a result decisions taken carries risk and uncertainty. Excess inventory is one of the most common problems faced by managers which further results in long cycle-time, outdated stock, poor sale, low rates, and reduction in order visibility and finally leads to customer dissatisfaction.
Long procurement time
In a traditional textile industry, procurement process takes a much longer time. So, the retailers need to forecast demand and identify consumption trends at a much earlier stage. Lack of clarity about future can either result in early stock out, delay or overstock.
Supply chain in-competency
With the urge for getting global, apparel and textiles are facing hurdles of inefficiency in carrying out various processes involved right from designing, developing samples, getting approval, manufacturing, dispatching to payment procedures. The total time taken can get extended to one year or even longer. If we calculate, production actually accounts for just ten to twenty percent of the total time. Rest of the time is taken for the information processing from one end to the other.
The trajectory of development of Information Technology has intersected every application in textile industry. From enhancing performance of textile manufacturing and tighter process control, IT has inserted intelligence at every node of textile supply chain.
Step into the global trade
It is a fact that a company going global is opened with lot of opportunities as well as threats in terms of competition, changing trends, and other environmental changes. It necessitates managing every kind of information efficiently and at much faster speed.
Interaction of Information Technology with Textile Supply Chain
Sharing of Information
Proper flow of information among supply chain member is very crucial. Such flow of information can influence the performance of overall supply chain operations. It includes data about customers and their demand, inventory status, production and promotion plan, shipment schedules, payment details, etc. Bar coding and Electronic data interchange are the two information technology tools which can facilitate information integration. Bar coding facilitates recording of detailed data by converting it to electronic form and can be easily shared among members through EDI system. EDI with its high efficiency is able to replace the traditional ways of transmission like telephone, mail and even fax. EDI enables managers to analyze and apply it in their business decisions. It also helps in expediting order cycle that reduces investment in inventory. EDI based network enables Company to maintain quick response and closure relations with suppliers and customers, who are geographically dispersed. Manufacturers and retailers can share even new designs developed through CAD/CAM.
Supports planning and execution operations
Planning and coordination are very important issues in supply chain management. The next step after sharing information is planning which includes joint design and implementation for product introduction, demand forecasting and replenishment. Supply chain members decide their roles and responsibility which is coordinated through the IT system.
Various software tools like MRP, MRP-II, APSS facilitates planning and coordination between different functional areas within the organization.
Material Requirements Planning (MRP): It helps in managing manufacturing processes based on production planning and inventory control system. Proper implementation of MRP ensures availability of material for production and product for consumption at right time optimizes the level of inventory and helps in scheduling various activities. MRP system uses computer databases to store lead times and order quantity. MRP includes mainly three steps: first assessing the requirement of how many units of components is required to produce a final product; here it applies logic to implement Bill of Material (BOM) explosions. Second step includes deducting the stock in hand from gross to find out net requirement. Finally, scheduling manufacturing activities such that finished goods are available when required, assuming the lead time.
Manufacturing Resource Planning (MRPII) system is a logical extension of MRP system which covers the entire manufacturing function. This typically includes machine loading, scheduling, feedback and Software extension programmes in addition to material requirement planning. It provides the mechanism to evaluate the feasibility of a production schedule under a given set of constraints.
A textile company which has multipoint manufacturing and engaged in global business necessitates something more than MRP and MRP-II like Distribution Requirement Planning (DRP), it has ability to solve both capacity and material constraints and quickly propagates the effects of problems in both backward and forward direction throughout the supply chain.
The Advance Planning and Scheduling (APSS) system includes both material focus of MRP and rapid response scheduling power of MRP-II.
Coordination of logistics flows
Workflow coordination can include activities such as procurement, order execution, implementing changes, design optimization, and financial exchanges which results in cost and time efficiency. The results are cost-effective, speedy and reliable supply chain operations.
IT contributes towards the maximizing the value of textile supply chain through integrating supply chain operations within and outside the organization and collaborating the acts of vendors and customers based on shared forecasts. Internet adds to IT contribution towards supply chain management through coordination, integration and even automation of critical business processes. New system of the supply chain game emerges as a result of business innovation fuelled by the Internet.
Many supplying companies maintain demand data by style, size, fabric and color to replenish inventory at retail outlet. Level of replenishing is predetermined by both parties after reviewing history of sales by product and buying behavior of the community. New Business Models:
Data mining and data warehousing
Data mining is the process of analyzing data from different viewpoints and summarizing it into useful information that can be used as a basis of monitoring and control, enabling companies to focus on the most important aspects of their business. It allows users to analyze data from many different dimensions, categorize it, and summarize the relationships identified. In short it is the process of finding correlations or relationship among dozens of fields in large relational databases. Data warehousing is the repository of data and can be defined as a process of centralized data management and retrieval. Centralization of data maximizes user access and analysis.
E-commerce
E-commerce can be B2B (Business To Business) and B2C (Business To Customer). B2C commerce is the direct selling to consumers through Internet. While B2B marketplace can be defined as neutral Internet-based intermediaries that focus on specific business processes, host electronic marketplaces, and use various market-making mechanisms to mediate transactions among businesses. B2B appears to be more prospective than B2C.
E-retailing
The textile-retail giants are adding an Internet shopping-component to their offering. It has affected their distribution and warehousing infrastructure. As a result of going online, retailers have changed their supply chain strategy. High volume products with stable demand are stocked in local stores, while low-volume products are stocked centrally for online purchasing.
Companies prefer a direct route to consumers by closely scrutinizing individual customer's tastes, preferences, habits, and buying patterns. Instead of waiting for consumers to visit their stores, retailers simply send them e-mails with offers. Internet has facilitated quick response system. With the use of web-enabled technology it is possible to have automatic customer replenishment system.
Fibre2fashion.com-Best B2B Marketplace of Textile, Apparel & Fashion Industry. It provides free online Industry News, Industry articles, Textile Fashion Jobs, Trade directory, Trade Leads, Marketwatch Report, World Trade fairs Directory, Stocklots Business Offers etc.
Saturday, May 3, 2008
Trucking Industry
The Trucking Industry is a great place to start when talking about new propulsion techniques and technologies because the economies of scale are so huge and the cost savings from even an incremental upgrade more than justify the expenditures in Research and Development to get us there. New Truck Technologies might not sound like a glamorous business but it is a multi-Billion Dollar Industry.
Right now the Industry Technology experts in the Trucking Sector are discussing Fuel Costs, Current Industry Innovations, Fuel Cells and all sorts of potential possibilities on the horizon. But we ask; What is over the Horizon?
What propulsion technologies are out there that we have not considered yet - that are not in the works or even on the drawing boards quite yet? The T-5 Group (The Truck Technology Think Tank Technology Team) considered this and came up with a few potential future technologies and narrowed those down to real hone in on what might be feasible in the next 20-years. Interestingly enough they are not alone.
Many superstar engineering teams at the top Trucking Industry Corporations are considering similar strategies to upgrade the efficiency of logistical flows using computers and more advanced trucks with better propulsion system, better aerodynamics and stronger and lighter materials.
So you ask; How far along are they in these exploits? Well, you might be surprised that the over-the-road truck you see on the highway is a lot more high-tech than you think. But even if you look under the hood and read up on its features, still it is nothing compared to what the Trucks of the Future will be like.
Right now the Industry Technology experts in the Trucking Sector are discussing Fuel Costs, Current Industry Innovations, Fuel Cells and all sorts of potential possibilities on the horizon. But we ask; What is over the Horizon?
What propulsion technologies are out there that we have not considered yet - that are not in the works or even on the drawing boards quite yet? The T-5 Group (The Truck Technology Think Tank Technology Team) considered this and came up with a few potential future technologies and narrowed those down to real hone in on what might be feasible in the next 20-years. Interestingly enough they are not alone.
Many superstar engineering teams at the top Trucking Industry Corporations are considering similar strategies to upgrade the efficiency of logistical flows using computers and more advanced trucks with better propulsion system, better aerodynamics and stronger and lighter materials.
So you ask; How far along are they in these exploits? Well, you might be surprised that the over-the-road truck you see on the highway is a lot more high-tech than you think. But even if you look under the hood and read up on its features, still it is nothing compared to what the Trucks of the Future will be like.
Thursday, March 27, 2008
Architectural design software
Do you recall those fascinating home designs that you saw at your architect’s place? Weren’t they fancy? Well, if you admired his/her handiwork, maybe it is time you shifted your sense of amazement to some of the finest digital software and tools available in the market. Yes! I am talking about architectural design software here. And boy, have they made an impact on the market.
If you are familiar with the architectural business, you would also be familiar with the image of the architect on his drawing board, working on a blueprint. Otherwise, the intern crouched in a corner working on a scale model of the proposed architectural building. Believe me when I say it. Most people even nowadays have the very same image of architects and the architectural profession stuck in their heads. In fact, before I had the opportunity to see some of the architectural design software in action, I too felt this way. But the advent of architectural design software has changed the industry in unimaginable ways. For one thing, the capabilities of the architects have been enhanced like never before. Now not only are they able to conceptualize complex designs, but they are also able to translate those designs into workable models thanks to the state of the art architectural design software.
In the earlier days, some of the architects who worked on multi billion dollar projects used software applications like AutoCAD to draft their designs. But with the increasing capabilities in design software, coupled with the progress that multimedia has made, AutoCAD is no longer the best way in which architects can present their work. Clients too have evolved over the ages and all of them demand better and better architectural design software to cater to their needs. The best thing about all these kinds of architectural design software is that they are all scalable. In the earlier days, there were a number of issues with legacy systems. As one architect favored a particular kind of architectural design software when compared to another, issues regarding interoperability of the various software frequently cropped up. But with the latest, evolved versions, scalability is inbuilt and ensures that such interoperability issues don’t crop up.
The result is obvious. Some of the better architectural constructions of the present day are all thanks to the capabilities of the architectural design software. And considering the way in which the software is progressing, it is only likely to get better!
If you are familiar with the architectural business, you would also be familiar with the image of the architect on his drawing board, working on a blueprint. Otherwise, the intern crouched in a corner working on a scale model of the proposed architectural building. Believe me when I say it. Most people even nowadays have the very same image of architects and the architectural profession stuck in their heads. In fact, before I had the opportunity to see some of the architectural design software in action, I too felt this way. But the advent of architectural design software has changed the industry in unimaginable ways. For one thing, the capabilities of the architects have been enhanced like never before. Now not only are they able to conceptualize complex designs, but they are also able to translate those designs into workable models thanks to the state of the art architectural design software.
In the earlier days, some of the architects who worked on multi billion dollar projects used software applications like AutoCAD to draft their designs. But with the increasing capabilities in design software, coupled with the progress that multimedia has made, AutoCAD is no longer the best way in which architects can present their work. Clients too have evolved over the ages and all of them demand better and better architectural design software to cater to their needs. The best thing about all these kinds of architectural design software is that they are all scalable. In the earlier days, there were a number of issues with legacy systems. As one architect favored a particular kind of architectural design software when compared to another, issues regarding interoperability of the various software frequently cropped up. But with the latest, evolved versions, scalability is inbuilt and ensures that such interoperability issues don’t crop up.
The result is obvious. Some of the better architectural constructions of the present day are all thanks to the capabilities of the architectural design software. And considering the way in which the software is progressing, it is only likely to get better!
Nuclear Power Plant
Nuclear Power Plant
Nothing arouses more controversy and argument than the subject of nuclear power. Since the advent of the nuclear power plant, there has been strong opposition and defenders of the technology. The figures for 2006 show that there are 442 reactors in the world, producing 17% of the world's electricity. The finite nature of fossil fuels is focusing the minds of politicians on whether to build new plants. Every time a new reactor is mooted, there are lengthy inquiries and protests.
Supporters of nuclear power say that the absence of greenhouse gas emissions is justification for building more nuclear power plant facilities. Environmental campaigners, such as Greenpeace, point to a number of concerns. There have been accidents, notably at Chernobyl and Three-Mile Island, radioactive leaks, and there is the threat of terrorism at nuclear facilitates.
Radioactive waste is another problem, with regard to how to transport it and how to dispose of it safely. The waste is dangerous to humans for thousands of years. Plutonium, a by product of nuclear power, can be used in the manufacture of an atomic bomb, a factor going against the quest for non-proliferation.
Cost is also a factor in the debate. The reactors are very expensive to build and to maintain. Their lifetime is limited and then they have to be decommissioned, another costly exercise. The technology of the nuclear power plant is reliant on uranium and this is a finite resource anyway.
When the first electricity power was produced by a nuclear reactor in 1951 in an Idaho experimental plant, it was supposed to usher in a golden era of clean power. The first commercial enterprise in the world began five years later at Calder Hall in England. The nuclear age has not met with universal praise. Many people claim that radioactive waste from a plant in Cumbria, England routinely leaks into the Irish Sea and that there is an above average amount of leukemia in the area.
The anti-nuclear lobby has a friend in the hit show, The Simpsons. The character of Homer Simpson is an incompetent safety officer at the local nuclear power plant. The industry is lampooned, showing Mr. Burns, the plant's owner, as an irresponsible money grabber with no social conscience. Core meltdowns are a regular occurrence, often averted by Homer who has invariably caused the incident in the first place.
The campaign for alternative energy sources continues. People who are not comfortable with the expansion of nuclear power look to wave, wind and solar power for the answer in addition to energy conservation. In the meantime, let us hope that Homer is a vast exaggeration.
Nothing arouses more controversy and argument than the subject of nuclear power. Since the advent of the nuclear power plant, there has been strong opposition and defenders of the technology. The figures for 2006 show that there are 442 reactors in the world, producing 17% of the world's electricity. The finite nature of fossil fuels is focusing the minds of politicians on whether to build new plants. Every time a new reactor is mooted, there are lengthy inquiries and protests.
Supporters of nuclear power say that the absence of greenhouse gas emissions is justification for building more nuclear power plant facilities. Environmental campaigners, such as Greenpeace, point to a number of concerns. There have been accidents, notably at Chernobyl and Three-Mile Island, radioactive leaks, and there is the threat of terrorism at nuclear facilitates.
Radioactive waste is another problem, with regard to how to transport it and how to dispose of it safely. The waste is dangerous to humans for thousands of years. Plutonium, a by product of nuclear power, can be used in the manufacture of an atomic bomb, a factor going against the quest for non-proliferation.
Cost is also a factor in the debate. The reactors are very expensive to build and to maintain. Their lifetime is limited and then they have to be decommissioned, another costly exercise. The technology of the nuclear power plant is reliant on uranium and this is a finite resource anyway.
When the first electricity power was produced by a nuclear reactor in 1951 in an Idaho experimental plant, it was supposed to usher in a golden era of clean power. The first commercial enterprise in the world began five years later at Calder Hall in England. The nuclear age has not met with universal praise. Many people claim that radioactive waste from a plant in Cumbria, England routinely leaks into the Irish Sea and that there is an above average amount of leukemia in the area.
The anti-nuclear lobby has a friend in the hit show, The Simpsons. The character of Homer Simpson is an incompetent safety officer at the local nuclear power plant. The industry is lampooned, showing Mr. Burns, the plant's owner, as an irresponsible money grabber with no social conscience. Core meltdowns are a regular occurrence, often averted by Homer who has invariably caused the incident in the first place.
The campaign for alternative energy sources continues. People who are not comfortable with the expansion of nuclear power look to wave, wind and solar power for the answer in addition to energy conservation. In the meantime, let us hope that Homer is a vast exaggeration.
Wednesday, March 12, 2008
Need Of Capital Seasoning For Condiments Industry
China has now become a big condiment producer, as well as a big market. Today we can see all the major international brands in the Chinese food seasoning market, and they are fiercely competing with local Chinese brands. As the Chinese capital market is opening up and improving, many traditional industries, such as manufacturing and process, are being revitalized and strengthened by private capital investments. So in this renewed and competitive market environment, how can the fragmented Chinese condiment companies break the barriers and become prominent?
Industry numbers
There are about 32,000 food flavoring product companies in China, which has created a fragmented market structure. In 2003, the whole sector in China registered sales revenue of $5 billion and profit of $280 million, while in 2004 and 2006 consumption value reached $8 billion and $13 billion respectively. On average, the condiment sector has been growing at 20% plus in recent years, being one of the fastest growing segments in the food industry in China. According to forecast from Ministry of Commerce, China's restaurant industry is expected to reach $160 billion revenue in 2007.
According to the recently released China's Restaurant Industry Operating Report 2007 by China Cuisine Association and Chinese Academy of Social Sciences, the restaurant industry achieved retail sales of $138 billion, 5.7 percentage points higher than China's GDP growth rate, and maintaining double digit growth for 16 consecutive years. Figures from China Condiments Industry Association also showed that condiment production in China has an annual output value of $6.7 billion.
In China, condiment products are mainly used in household cooking, restaurant industry and food processing industry. Based on anecdotal evidence from the restaurant industry in China, condiment consumption is now approaching the 10% threshold of restaurant consumption value. This means for every $10 spent in restaurants, $1 goes to condiment spending.
Many condiments are end products for consumption, as well as ingredients for food processing. Such characteristics are particularly evident in two segments, one is instant noodles, whose taste greatly depend on condiments. And the other is the explosive growth of condiment exports from China.
Regional brands
Chinese condiment market has a large variety of taste preference, so has the condiment product types. The combination between traditional ingredients and derivative forms is almost endless. Major production areas for condiment include Beijing, Tianjing, Shanxi Province, Hebei Province, Sichuan Province, Guangdong Province, Shandong Province and the Jiangsu-Zhejiang region. Other provinces such as Liaoning, Henan, Hubei, Anhui and Jiangxi haven't had their own local condiment brands. Overall, most condiment brands in China are still regional brands, and truly national brands are rare.
There are a number of reasons for the above situation. First, China is a geographically large country with a large population, which have lead to the diversity in taste preference since history. For example, there are more than 9 major vinegar types used in different regions in China. The second reason is that the condiment industry in China is still a low-tech and commodity industry, which has deterred brand establishment historically. Therefore, how to establish brands in such an industry structure is always a goal for many Chinese condiment companies to pursue.
Take the example of Guangdong-based Haitian (HADAY) Sauce, one of the famous sauce brands in China. In 2006, HADAY's production output and sales income were 620,000 tonnes and $260 million, with growth rates of 34.8% and 22.5% on pcp respectively. A source from HADAY indicated that sales income in 2007 is expected to exceed $400 million. But even compared to the national sauce demand of 5 million tonnes per year, not to mention the whole condiment market, HADAY is still occupying a relatively small portion of the market.
Cost pressure
As prices for raw ingredients such as soybean, sesame and chilli have been increasing in the past 2 years, condiment prices in China are also following suit. Condiment products such as soy sauces, vinegars and chili sauces had collectively put up their prices in early 2007. For a bottle of mature vinegar previously sold at $0.25, it has now gone up to $0.33.
With costs rising, the pressure on condiment producers is also getting bigger. For any unilateral price increases, a company has to face the challenges from peer pricing and consumer affordability. Therefore such bottlenecks have become a huge problem for many condiment companies. An industry insider commented that although costs and demand are both rising for the whole industry, constrained by the fierce market competition, many companies are still very cautious about any price increases. And consumers, media and governments are also sensitive about any price changes in essential items.
Capital investments underpinning market developments
With such a huge market, private capital has never stopped looking at the condiment industry in China. And the industry is also entering a dividing, transforming and consolidating era.
China's condiment industry is currently full of leaders, challengers and "guerrillas", creating a highly competitive market environment. In such a market, weak products can quickly become brand products, and fast-pace strategies can nicely offset scale disadvantages. Even for a tiny pack of food flavour powder worth $1, it could become a multi-million dollar enterprise in a huge market like China. However, without sustainable and prominent brands, but only instant fame and superficial images, the industry still wouldn't develop properly.
The upcoming Growth Enterprise Market (GEM) in China may provide an appropriate platform to satisfy companies' growth and expansion funding demand. Through large scale capital investments, it is possible for China to develop several prominent condiment brands, which in turn could become examples for other peers to follow. We hope that in the near future, we could see world class condiment brands from China, similar to the status reached by China's household electronics industry today.
Industry numbers
There are about 32,000 food flavoring product companies in China, which has created a fragmented market structure. In 2003, the whole sector in China registered sales revenue of $5 billion and profit of $280 million, while in 2004 and 2006 consumption value reached $8 billion and $13 billion respectively. On average, the condiment sector has been growing at 20% plus in recent years, being one of the fastest growing segments in the food industry in China. According to forecast from Ministry of Commerce, China's restaurant industry is expected to reach $160 billion revenue in 2007.
According to the recently released China's Restaurant Industry Operating Report 2007 by China Cuisine Association and Chinese Academy of Social Sciences, the restaurant industry achieved retail sales of $138 billion, 5.7 percentage points higher than China's GDP growth rate, and maintaining double digit growth for 16 consecutive years. Figures from China Condiments Industry Association also showed that condiment production in China has an annual output value of $6.7 billion.
In China, condiment products are mainly used in household cooking, restaurant industry and food processing industry. Based on anecdotal evidence from the restaurant industry in China, condiment consumption is now approaching the 10% threshold of restaurant consumption value. This means for every $10 spent in restaurants, $1 goes to condiment spending.
Many condiments are end products for consumption, as well as ingredients for food processing. Such characteristics are particularly evident in two segments, one is instant noodles, whose taste greatly depend on condiments. And the other is the explosive growth of condiment exports from China.
Regional brands
Chinese condiment market has a large variety of taste preference, so has the condiment product types. The combination between traditional ingredients and derivative forms is almost endless. Major production areas for condiment include Beijing, Tianjing, Shanxi Province, Hebei Province, Sichuan Province, Guangdong Province, Shandong Province and the Jiangsu-Zhejiang region. Other provinces such as Liaoning, Henan, Hubei, Anhui and Jiangxi haven't had their own local condiment brands. Overall, most condiment brands in China are still regional brands, and truly national brands are rare.
There are a number of reasons for the above situation. First, China is a geographically large country with a large population, which have lead to the diversity in taste preference since history. For example, there are more than 9 major vinegar types used in different regions in China. The second reason is that the condiment industry in China is still a low-tech and commodity industry, which has deterred brand establishment historically. Therefore, how to establish brands in such an industry structure is always a goal for many Chinese condiment companies to pursue.
Take the example of Guangdong-based Haitian (HADAY) Sauce, one of the famous sauce brands in China. In 2006, HADAY's production output and sales income were 620,000 tonnes and $260 million, with growth rates of 34.8% and 22.5% on pcp respectively. A source from HADAY indicated that sales income in 2007 is expected to exceed $400 million. But even compared to the national sauce demand of 5 million tonnes per year, not to mention the whole condiment market, HADAY is still occupying a relatively small portion of the market.
Cost pressure
As prices for raw ingredients such as soybean, sesame and chilli have been increasing in the past 2 years, condiment prices in China are also following suit. Condiment products such as soy sauces, vinegars and chili sauces had collectively put up their prices in early 2007. For a bottle of mature vinegar previously sold at $0.25, it has now gone up to $0.33.
With costs rising, the pressure on condiment producers is also getting bigger. For any unilateral price increases, a company has to face the challenges from peer pricing and consumer affordability. Therefore such bottlenecks have become a huge problem for many condiment companies. An industry insider commented that although costs and demand are both rising for the whole industry, constrained by the fierce market competition, many companies are still very cautious about any price increases. And consumers, media and governments are also sensitive about any price changes in essential items.
Capital investments underpinning market developments
With such a huge market, private capital has never stopped looking at the condiment industry in China. And the industry is also entering a dividing, transforming and consolidating era.
China's condiment industry is currently full of leaders, challengers and "guerrillas", creating a highly competitive market environment. In such a market, weak products can quickly become brand products, and fast-pace strategies can nicely offset scale disadvantages. Even for a tiny pack of food flavour powder worth $1, it could become a multi-million dollar enterprise in a huge market like China. However, without sustainable and prominent brands, but only instant fame and superficial images, the industry still wouldn't develop properly.
The upcoming Growth Enterprise Market (GEM) in China may provide an appropriate platform to satisfy companies' growth and expansion funding demand. Through large scale capital investments, it is possible for China to develop several prominent condiment brands, which in turn could become examples for other peers to follow. We hope that in the near future, we could see world class condiment brands from China, similar to the status reached by China's household electronics industry today.
Customer Oriented Organization In Aviation Industry
Inventory KPI is important in any customer-oriented organization, from suppliers down to the end users. In the aviation industry, for instance, the end users may be the pilot, the flight crew or the passengers. With the field of aviation changing its business paradigm into something new, so does its inventory KPI as well.
Newer business models are currently being used in the aerospace industry. The focus may be on the use of narrow jets, wide bodied jets, low-cost carriers and many others. Inventory KPI is important in the supply of service facilities at global locations that are strategically dispersed to enable proper aircraft servicing. Many airline companies see just how important it is to be able to provide full service to ensure competitive edge. Moreover, in a military environment, tracking of inventory KPI is of even crucial importance as well, especially with the escalating use of net centric warfare and rapid reaction.
Also, new players with a varied geographical spread are entering the commercial aviation business. Especially in the aerospace industry's globally interdependent environment, effective and efficient management in logistics can spell a huge difference between profit and loss.
Good inventory management and measurement of inventory KPI can boost airline operations, resulting to an increase in sales and more economic benefits for locations where these airlines operate. Traditional inventory KPIs for handling stock control include ABC classification for parts based on frequency of use and value; measurement of stock turns and service level responsiveness and recording the rate of daily receipts.
These measures show that airline companies can boost its competitive edge when there is proper cash management for acquired goods and services. In fact, this particularly holds true when interest rates and inflation rise. Cost of holding stock increases subsequently and can even go up to about 20 to 30% of the item's cost, to store it for a year. Proper inventory management can reduce operating costs by minimizing the space needed for operations, thus making it easier to gain higher profit margins and market share.
Many leaner operations and sophisticated supply networks in the aviation industry operate under the new business paradigm. Inefficiency can lead to financial repercussions in terms of aircraft on the ground (AOG) situation. This is why it is important to enhance and get maximum leverage in managing the inventory control system to incorporate the end-to-end supply chain.
While various departments also come with their own objectives, the key here is to effectively communicate both externally and internally within the organization in order to arrive at a level that is strategic to the business's operational execution.
Organizational inventory KPI must be associated to its supplier base, in order for the supply chain to be working well towards the same objectives. This is especially important in key supply chain activities which include management of the supply chain's risk vulnerability and ensuring the supply's security.
Apart from the importance of logistics and warehousing to strategic and operational success in the aviation business, inventory KPI should be dynamic and must go with the organization's strategy. For instance, inventory KPI should show that lean operations are in line with the activities in the supply chain.
Newer business models are currently being used in the aerospace industry. The focus may be on the use of narrow jets, wide bodied jets, low-cost carriers and many others. Inventory KPI is important in the supply of service facilities at global locations that are strategically dispersed to enable proper aircraft servicing. Many airline companies see just how important it is to be able to provide full service to ensure competitive edge. Moreover, in a military environment, tracking of inventory KPI is of even crucial importance as well, especially with the escalating use of net centric warfare and rapid reaction.
Also, new players with a varied geographical spread are entering the commercial aviation business. Especially in the aerospace industry's globally interdependent environment, effective and efficient management in logistics can spell a huge difference between profit and loss.
Good inventory management and measurement of inventory KPI can boost airline operations, resulting to an increase in sales and more economic benefits for locations where these airlines operate. Traditional inventory KPIs for handling stock control include ABC classification for parts based on frequency of use and value; measurement of stock turns and service level responsiveness and recording the rate of daily receipts.
These measures show that airline companies can boost its competitive edge when there is proper cash management for acquired goods and services. In fact, this particularly holds true when interest rates and inflation rise. Cost of holding stock increases subsequently and can even go up to about 20 to 30% of the item's cost, to store it for a year. Proper inventory management can reduce operating costs by minimizing the space needed for operations, thus making it easier to gain higher profit margins and market share.
Many leaner operations and sophisticated supply networks in the aviation industry operate under the new business paradigm. Inefficiency can lead to financial repercussions in terms of aircraft on the ground (AOG) situation. This is why it is important to enhance and get maximum leverage in managing the inventory control system to incorporate the end-to-end supply chain.
While various departments also come with their own objectives, the key here is to effectively communicate both externally and internally within the organization in order to arrive at a level that is strategic to the business's operational execution.
Organizational inventory KPI must be associated to its supplier base, in order for the supply chain to be working well towards the same objectives. This is especially important in key supply chain activities which include management of the supply chain's risk vulnerability and ensuring the supply's security.
Apart from the importance of logistics and warehousing to strategic and operational success in the aviation business, inventory KPI should be dynamic and must go with the organization's strategy. For instance, inventory KPI should show that lean operations are in line with the activities in the supply chain.
Friday, February 22, 2008
Storing Cabinets For Industrial Use
The industrial work place has many storage needs. Depending on the department there is a need to store everything from tiny parts to large tools and parts. There is a storage cabinet, storage rack, or bin storage to meet just about every need.
Starting with industrial storage cabinets. Most industrial strength storage cabinets are an all welded cabinet. These cabinets offer a variety of shelf options as well as interior bin storage. There are cabinet designs that have bin and shelf storage in the doors as well. Most of the heavy duty storage cabinets that offer storage in the doors will also have wheels or casters on the bottom of the door to make it easier to open with the weight of the additional items. All of these cabinets have handles that either have built-in locks or have a padlock hasp to secure the cabinet. There is a wide range of sizes and capacities, as well as units that have wheels to make the cabinet mobile.
Pallet racking and cantilever racks are the two most common types of racks. Pallet rack is for the obvious pallet storage. However you can also get decking for pallet racks that enable you to store part, tools and other large items. Pallet rack comes in a variety of sizes and capacities ranging from 96" wide up to 120" wide, and 36" deep to 48" deep. Pallet rack comes in heights ranging from 96" up to 144". Pallet rack is generally set up as three high units, however the height of each layer is adjustable. Capacities for pallet rack can range from 4,000 pounds to 30,000 pounds. The main thing to look for when deciding if pallet rack meets your needs is if the capacity is rated per beam or for the unit as a whole. Another great safety feature available for pallet rack is steel pallet rack guards. These are expanded metal gates that are mounted on the front of the pallet rack and keep items stored from falling down if the rack is bumped or shaken. Cantilever rack is used to store lumber, metal bars, pipes, and other long materials. Cantilever rack is made up of two basic components, the uprights and the arms. When choosing cantilever rack be sure you get both with matching capacities. The capacity can range from 300 pounds to over 12,000 pounds. There are two different types of arms for these racks as well. There are straight arms that extend out straight from the upright, and angled arms that tilt upward from the upright to keep round items from rolling off.
Bin storage comes in four basic storage options. There are just the bins themselves, bin cabinets, bin shelving and bin racks. The bins themselves come in a wide variety of sizes and made mostly from plastic, however there are fiberglass and steel bins also. If you want more organization of your bins you can use a bin storage cabinet, bin shelving, or bin racks. Bin storage cabinets are designed to hold different layouts with a variety of bin sizes. Bin shelving is designed like the cabinets to hold a variety of layouts of common bin sizes. and bin racks can either be free standing or wall mounted. Bin racks are more commonly used to display or store smaller items or parts. The bins hand on the racks by a small lip on the back, so it isn't advised to try to use this style for heavier or larger bins.
These are just some of the options for industrial storage. If you have specific storage needs consult a material handling and storage specialist to help you choose the type of equipment that will best fit your needs.
Research And Development In Industrial Technology
Industrial and Technological Espionage goes on constantly and it is a shear sign of weakness if you consider it. Any nation or business who cannot perform and pony up their efforts in Research and Develop and then resorts to the lowest form of imitation of upright walking mammals is intellectually weak. Today there are tens of thousands employed as corporate spies to gain access to Industrial Technology.
Why to these groups engage in this activity? Because they are weak and the lowest form of life. They cannot compete in the real world and think it is cheaper to steal technology and innovation than create it. The fact is that with the right team and the right numbers you can create new innovations faster than the "rat bastards" can steal it. The thieves think they are clever and yet we catch industrial spies every day.
Those who can't cheat, just like in college where kids turn in bought and paid for term papers found on the Internet for a modest fee. They cheat off each others tests and they get out of school and pad their resumes with extra degrees from schools that they never attended, why? Because they are weak. Weakness is not to be admired and weakness is not a human trait. Weakness is sickening and pitiful.
When human resort to cheating they dishonor their family names and show their vulnerabilities and weakness. Corporate espionage is a crime and it is so common that it is considered a cost of doing business now. Luckily this great nation, the greatest nation ever created in the history of mankind can produce new innovations and technology faster than those who lack integrity can produce it. Think on this and oh yeah one last fact:
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