Supply Chain Network Design: Getting Started

Supply Chain Network Design: Getting Started

If you’re reading this, then chances are you’re well aware of how critical supply chains are to our everyday life. Though largely unnoticed, supply chains are responsible for granting us access to almost everything one can buy in a store. Assortments are always changing which means continual challenges to the supply chain and its existing networks. If you attended our webinar, Charlotte’s Web: Network Design and how to meet your SLAs, you know that designing a supply chain network is both an art and a science. If you missed the webinar, you can watch a recording of it here, or continue reading for a few takeaways.

What is Supply Chain Network Design?
Supply chain network design is the process of building and modeling a supply chain to better understand the costs and time associated with bringing goods to market with the resources and locations available. A concept called Location Intelligence plays a crucial role in supply chain network design.

What is Location Intelligence?
Location Intelligence (LI) is the process of using location data to answer spatial questions. This includes anything from simple data visualizations on maps, to analyzing location data. Almost every aspect of supply chain network design is tied to LI, as it’s used to find the best way to serve stores, what location is best in relation to the distribution center, and much more.

Modeling
Here at Alpine Supply Chain Solutions, we like to say that every model is wrong, but some can be useful. We believe that making use of models is essential for the planning phase of supply chain network design, but we cannot forget that all models are debatable. It’s important to be critical of your model, and to use it to explore all 50 potential “what if” scenarios, not just the first three that come to mind. 

Getting Started
Generally speaking, when designing a supply chain network, it’s important to start the process answering a few basic questions:

  • How do I design my supply chain network to deliver the required service at the lowest possible cost?
  • Given a fixed network, how do I determine optimal product sourcing and inventory deployment rules to meet anticipated customer demand?
  • Given a logistics network and a defined distribution strategy, how can I best use my available transportation resources?

The point is to put all your effort into creating the most efficient network possible, while reliably meeting customer demands, and simultaneously doing so for the lowest cost possible.

Tools
Designing a strong supply chain network requires the successful combination of a variety of tools to create the desired result. One of the biggest hurdles for network design is ensuring all of these tools work together. That’s the artistic side of the endeavour. So, what tools are needed to build an effective supply chain network?

  • Industry Aptitude
    • Data to information 
    • Algorithms
      • Public and custom
      • Positioning
      • Routing
  • The Art of Applied Math
  • Rating Engine
    • Parcel
    • LTL
    • Truckload
  • Database Tool
    • Relational data aptitude
    • Coding capability
  • Plotting Tool
  • Zip Code Database
    • Zip Code
    • Latitude 
    • Longitude

Data, Data, Aata
As you can imagine, data plays an integral role in the process too. If your data is flawed, then everything else will be flawed as well. It’s essential to have a single source of clean data that you can rely on. Dependable data means you can also add variables to plan for the future. Futurecasting when designing a supply chain network is extremely valuable, as you can prepare for adding new regions down the line, extenuating circumstances like extreme weather, or adding a new set of products in several year’s time.

Designing a supply chain network is both an art and a science. A successful design can mean the difference between profit and loss. If you’re getting ready to embark on a new design watch a recording of our webinar or get in touch for some expert guidance.

School Health Corp Warehouse Slotting Success with Alpine – MMH

School Health Corp Warehouse Slotting Success with Alpine – MMH

School Health Corp., an Alpine Supply Chain Solutions client, was recently featured in Modern Materials Handling article discussing their new warehouse project using innovative labeling and strategic warehouse slotting optimization.

“While we are adept at warehouse operations and order fulfillment, our current team had never designed a warehouse from scratch before,” says Beth Reed, School Health’s project manager/training developer.

“With this in mind, how could the company slot its product inventory for maximum efficiency and throughput? What is the best way to handle seasonal spikes in demand for certain products, which typically occur at the start of each new school year? And, how should it number and label its bins—for optimal performance with its existing warehouse management software?”

Beth Reed

Beth Reed, Project Manager & Training Developer at School Health

To receive assistance with its warehouse location methodology and slotting plans, School Health Corp worked with Alpine SupplyChain Solutions. The project’s goals included minimizing the time and distance required to replenish key products; reducing workers’ bend-and-reach requirements for placing and picking products; and organizing its inventory more efficiently, leading to greater throughput.

“In my role, I hadn’t previously spent a lot of time thinking about warehouse location address methodology,” Reed notes. “But working with Alpine made the entire project team appreciate the science involved in slotting our products.”  She continues, “An optimally slotted warehouse supports efficiency and profitability. Just as important, it also minimizes the time and effort involved in key tasks like product putaway, picking and order fulfillment, which our employees appreciate.”

Alpine Supply Chain Solutions Welcomes Bradley Steger to the team

Alpine Supply Chain Solutions Welcomes Bradley Steger to the team

Five questions with Bradley Steger, the newest member of Team Alpine

Q: Why did you decide to join the Team Alpine?

A: There are several reasons I joined Alpine. First off, I’ve known Alpine’s founder, Michael Wohlwend for a long time, and I admire his knowledge and leadership. Next, my background in the supply chain aligns well with what Alpine is doing. I look forward to helping Alpine’s customers and partners move their businesses forward. Finally, who doesn’t want to work in supply chain right now?  It is an incredibly dynamic place to be and it will be for the foreseeable future!

Q: What were you doing before you joined Alpine?

A: I was semi-retired and focused on spending time with my family and getting caught on many things that had been second priority to my career. Prior to that, I spent 30 years working in supply chain management with a focus on warehouse management; software mergers, acquisitions, and divestitures; and program/project management.

Q: What professional accomplishments are you most proud of?

A: I’ve blazed a lot of unchartered territory. Throughout my career, I was frequently assigned to lead many ‘first-ever’ projects, including the production of Catalyst’s first annual plan, Agilent’s first Sarbanes Oxley certification, and Aptean’s first acquisition. I’m proud that I’ve been able produce results without a roadmap or template, and that I’ve always tried to take in account the most important thing for every company – its employees.

Q: Why do you do what you do?

I think there are a lot of exciting opportunities out there in the supply chain. An aging population means new things for the pharmaceutical industry and the ever-changing retail landscape presents new challenges for retailers and food and beverage manufacturers. I really enjoy making the people around me successful – fellow employees, customers, and partners.

Q: Tell us a bit about who you are outside of work.

I’m married and have two sons, ages 13 and 11. They keep us busy with their sports, including soccer, basketball, and volleyball. We try to spend as much time as possible at our vacation homes in Colorado and Northern Wisconsin.  If I have any free time, I like to get outside for some birding.

Alpine Supply Chain Solutions Successfully Designs New Facility for MJ Holding Company

Alpine Supply Chain Solutions Successfully Designs New Facility for MJ Holding Company

Storage Type Analysis yields layout that maximizes the building’s square footage and promises to increase picking velocity

Alpine Supply Chain Solutions, a leader in supply chain consulting, today announced the successful design of a new facility for MJ Holding Company, LLC. MJ Holding is the largest North American distributor of trading cards (including gaming, sports, and entertainment), related trading card supplies, collectibles, toys, and hot trend items. The new facility has begun operations and will soon accommodate all MJ Holding’s inventory storage and distribution needs, while providing space for future growth and allowing for a reduction in costs. MJ Holding has been in the trading card distribution business since 1993. Their effective category management process has helped the company expand its retail distribution footprint across 8,000 retail store locations located in the United States and Canada. Their continual growth means that they frequently need to scale to manage additional items, product lines, customers, and eCommerce orders. This led them to outgrow their current facility. MJ Holding first partnered with Conveyor Solutions to develop a high-level cost estimate for a new facility and get the project approved. The company originally planned to copy their current facility layout and picking process with slight modifications to adapt to a larger space. But Conveyor Solutions brought Alpine Supply Chain Solutions in to perform a Storage Type Analysis (STA) to validate the plan. According to Michael Wohlwend, Managing Principal for Alpine Supply Chain Solutions, “The results of the STA identified what of MJ Holding’s inventory moved too slowly and what percent of it moved too quickly for the planned case flow picking set up, which could result in significant replenishment issues.” A further sensitivity analysis on top moving inventory identified additional changes to the original plan as well. In the end, Conveyor Solutions and Alpine used all the data acquired to identify the most appropriate storage location for each item to be stored in MJ Holding’s new facility. “The combination of Conveyor Solutions’ equipment and installation expertise and Alpine’s data-centric approach powered by Optricity’s OptiSlot DC™ (OptiSlot) Software, allowed us to learn important details about our business that we incorporated into the design and layout of our new facility,” said Mark Zabloudil, MJ Holding’s COO. “We expect the new design and layout will help us to not only increase overall picking velocity, but balance labor, and increase replenishment productivity.”

About MJ Holding Company, LLC
MJ Holding Company, LLC is the largest North American distributor of trading cards (including gaming, sports, and entertainment), related trading card supplies, collectibles, toys, and hot trend items. The company provides retail supply chain management and specializes in category planning, planogram development, initial distribution, replenishment, and modular merchandising for their retail partners. Additionally, they support manufacturers who are looking for retail distribution of their products.

About Alpine Supply Chain Solutions
Alpine Supply Chain Solutions, based in Chicago, IL, is a supply chain consulting company driven to ensure their clients get the most value from their investments. Their approach to every project starts with the data and if you have any questions regarding information in these press releases please contact the company listed in the press release. Our complete disclaimer appears here ends with a cost justifiable solution. With deep roots in industrial engineering, Alpine’s approach is unique. About Conveyor Solutions Since 1996, Conveyor Solutions works as an integration partner for automated material handling and storage systems for the supply chain industry. We focus on understanding the customer’s process and project expectations, then selecting the best equipment required to meet those needs. We build relationships one solution at a time.

About Optricity
Optricity creates and supports warehousing analysis, optimization and performance improvement software. To develop its solutions, including the highly acclaimed warehouse slotting application, OptiSlot DC™, Optricity utilizes a blend of warehousing domain expertise, advanced mathematics and software engineering skills. The Platform of planning solutions includes slotting, profiling, integration, simulation, @Ease Warehousing Technologies™ and the Moves Conductor™ for warehousing operations.

Contact Information
Michael W
Alpine Supply Chain Solutions
http://www.AlpineSupplyChainSolutions.com
(630) 886-4762
Michael Wohlwend
Alpine Supply Chain Solutions
http://www.AlpineSupplyChainSolutions.com

The Bazaar Inc. uses Alpine Supply Chain Solutions to Reduce Distribution Footprint and Increase Throughput

The Bazaar Inc. uses Alpine Supply Chain Solutions to Reduce Distribution Footprint and Increase Throughput

Alpine Supply Chain Solutions, a leading boutique supply chain consulting firm, today announced the successful completion of a distribution and throughput project for The Bazaar Inc., the number one seller of brand name merchandise closeouts. Alpine Supply Chain Solutions collaborated with Conveyor Solutions Inc. (CSI) to provide The Bazaar with:

  • Improved space utilization
  • Increased throughput
  • Decreased dock to stock time
  • Reduced labor costs

Alpine has always been dedicated to helping clients make the most of the resources they have, rather than reinventing the wheel. This project with Bazaar was no exception. By improving processes and space utilization, Bazaar was able to realize a 25% decrease in dock to stock time, a substantial increase in throughput, and reduce labor costs by 30 percent.

Ryan O'Connor The Bazaar

Ryan O’Connor

According to Ryan O’Connor, SVP of Operations at Bazaar, “The combination of CSI’s equipment and installation experience and Alpine’s data-centric approach provided Bazaar with a real-world solution to address our need to be flexible. The team was collaborative from the beginning, and did not try to sell us anything until they determined exactly what we needed. In the end, Alpine developed a very simple solution to handle a very complex problem.”

When Bazaar began working with CSI and Alpine, the company was at capacity and unable to cost-effectively scale and engage in new opportunities. Despite the addition of new real estate, they continued to struggle. In the end, eliminating duplicate administration, management, and transportation tasks and consolidating two facilities into one with a more efficient layout turned out to be the answer.

According to Michael Wohlwend, Managing Principal at Alpine, “The key to success in this project was tied to studying data to gain a true understanding of orders, items, product types, and quantities and architecting a solution around that reality.” Kevin Thompson, Partner at CSI, feels Alpine’s focus on data is what made the joint effort so successful. Thompson states, “Working with Alpine to define the project requirements based on the actual data analysis has proven time and again the best way to accomplish the customer goals. Projects without Alpine’s analysis tend to have variable ways to determine success.”

About The Bazaar Inc.
The Bazaar Inc. is a family-owned business that has been leading the charge in purchasing name-brand closeouts to be sold on the secondary retail market for 60 years. The company moves hundreds of thousands of units of retail and CPG goods through small to large retail and wholesale partners around the world. As a trusted liquidation partner to manufacturers, Bazaar provides a unique and valuable inventory asset-recovery re-processing service that is unmatched in the marketplace. To learn more, visit: http://www.thebazaarinc.com.

About Alpine Supply Chain Solutions
Alpine Supply Chain Solutions, based in Chicago, IL is a supply chain consulting company driven to ensure their clients get the most value from their investments. Their approach to every project starts with the data and ends with a cost justifiable solution. With deep roots in industrial engineering, Alpine’s approach is unique. For more information, please visit the company website at: http://www.AlpineSupplyChain.com.

About Conveyor Solutions, a Systems in Motion Company
Conveyor Solutions based in Elgin, IL is an Automated Material Handling Integrator driven to build relationships with our customers for long term partnerships. We create an environment of collaborative design with our clients to achieve the goals of the project. Systems in Motion is a team of companies that work together to provide a complete turnkey solution. Learn more at: http://www.conveyorsolutions.com.