Supply Chain by the Numbers: Week of June 11 , 2009
 

-June 11, 2009
   
 

This Week's Supply Chain by the Numbers - Inventory Optimization Reduction Potential, Proven Oil Reserves Decline, Flowthrough DC Savings, ATKearney Procurement Analysis

   
 

The Supply Chain and Logistics Numbers Worth Knowing This Week: Inventory Optimization Software in Top 3, Running on Empty, DC Costs Savings in Flow-Through at Home Depot, Follow the Procurement Leader

   
 
 
 

25%

Upward potential for inventory reduction from adoption of “Inventory Optimization” software, according to a new report from the analysts at Manufacturing Insights, which it says the software category is now one of the top three technologies companies are pursuing.
 
 



 

3 billion

The decline in barrels in the proven reserves of world oil from 2007 to 2008, according to the annual BP Statistical Review of World Energy, released this week. That news is among the factors causing oil prices to continue to rise this week.
 
 
20%

Savings possible in distribution costs just from operational improvements (no putaway and pick), without considering inventory reductions, when moving to a flow-through DC model, according to Mark Holifield, SVP of supply chain at Home Depot, in a recent interview with Supply Chain Digest on the company’s new supply chain strategies.

 
 
 
 
70%

The amount of total company spend that is managed formally by the procurement organization among “procurement leaders,” versus an average of just 40% by “procurement followers,” according to a recent analysis by ATKearney.