Supply Chain by the Numbers

- May 5 , 2011


Supply Chain by the Numbers for Week of May 5, 2011

  Lowes Builds Great Software Deployment Process; Harry and David will have Busy DC Weekend in 2012; Japanese Auto Makers Take Supply Chain Hit; Inventory Bin Challenges at Frito-Lay


Number of business scenarios home products retail giant Lowes tested around demand planning and replenishment processes, using a "prototype" of the production systems it was planning to implement, all as part of the "conceptualization" phase of the project. This according to a presentation this week at the JDA user conference. The point was the level of effort - highly unusual - that Lowes put into the upfront part of the program, which it (and SCDigest) believe will hugely improve the chances of ultimate implementation success.




Number of distribution centers retailer and direct marketer Harry and David plans to go live with on a new WMS simultaneously next year, as the company makes a move to SAP's EWM solution in DCs in Ohio and Oregon, according to SAP development manager Heather Krupp. Those comments were made during a supply chain Videocast this week on our Supply Chain Television Channel. We think Heather will have a busy few days next year. To see the full broadcast, go to Harry and David SAP WMS Videocast.


Number of "bins" or small storage locations that PepsiCo must manage to support its Direct Store Delivery operations, especially in its Frito-Lay division.  Products are delivered from DCs to "un-manned" small storage locations, usually in more remote areas, that are later picked up by local delivery drivers. TMS optimization technology helps manage the challenge, as well as the rest of the company's total $2.2 billion freight spend, according to a presentation at the JDA user conference.




Drop in auto sales in Japan in April, as a parts shortage caused by the March 11 earthquake and tsunami cut into vehicle production and reduced supplies of new autos to dealerships. That follows a 37% drop in March, as the full effect of the disaster was felt and  parts inventories were consumed. This really was the result of the supply chain disruption, not consumer behavior, as the data tracks shipments from factories to dealers.