Relook at SKU and Activity Profiles<br />Topics: <br />Changes in Order Profiles & Demand Patterns<br />Optimal usage of DC’s<br />SKU Velocity Profile<br />Source: Supply Chain Digest (www.scdigest.com)<br />- AKSHAY BHARDWAJ<br />
INTRODUCTION<br />Global recession has caused a dramatic change in Order Profiles and Demand Patterns<br />Customers increasingly moving towards lower priced goods resulting in optimal usage of DC’s by firms<br />WHAT IS SKU AND ACTIVITY PROFILING?<br />The process of gathering and analyzing data about both, order profiles(orders per day/shift) and individual SKU activity(volumes, breakdown by unit of measure etc.)<br />
DATA NEEDED FOR ORDER PICKING<br />Order mix distribution (family mix, handling unit, order increment)<br />Lines per order distribution<br />Cube per order distribution<br />Lines and cube per order distribution<br />Analysis of this data should develop a SKU velocity profile similar to the one below:<br />
KEY POINTS<br />Order picking systems decisions are closely tied to location and storage mode decisions<br />Different order picking technologies are best suited to SKU velocity profiles for a given unit of measure<br />Different tech investments will have different ROI depending on the level of activity with a pick zone. SKU and order activity profiling is essential to optimizing these decisions.<br />
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