Happy Wednesday! We hope you're ready for another mid-week delivery of supply chain news, practical advice, and epic job opportunities. đźšš In this week's edition of The Backorder:
- Mastercard's plan to revolutionise online purchasing
- 4 quick ways to boost efficiency in your warehouse
- Essential tips for de-risking technology adoption
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Supply chain headlines
- Sainsbury's expecting to reduce plastic waste by 694 tonnes per year. A new packaging strategy across its own-brand chicken and fish lines is set to cut 70% of the UK supermarket chain's plastic rubbish, writes Georgia Wright.
- Cargo theft volumes predicted to rise 34% by end of 2024. Last year thefts in the US rose from around 60 in June to roughly 120 in July and August due to attacks from "more sophisticated" criminal groups – a trend that's expected to continue, according to experts at Supply Chain Brain.
- Mastercard announces plan to "reimagine" online checkout in Europe by 2030. The payment card services company recently declared its vision for 100% ecommerce tokenisation. They're intending to phase out manual card entry in Europe by the end of the decade.
4 ways to improve warehouse efficiency
We can’t all achieve Amazon-levels of warehouse efficiency. However, there are still plenty of paths to optimisation for smaller businesses that don't include dehumanising your staff or cancelling bathroom breaks.
1. Measure, measure, measure. There’s no point trying to improve something if you can’t measure it. Inventory turnover, pick accuracy, OTIF rate, receiving efficiency… choose the warehouse KPIs that matter to you, then track your improvements so you can learn from them.
2. Optimise vertically. Everyone knows to store popular items near the packing area, but don't forget the time it takes to retrieve items that are higher up. An item stored further away but at ground level can still be retrieved faster than one nearby but high up.
3. Pick into your packaging. Consider removing a step in the order fulfilment process by picking items directly into the container used for delivery – just be sure to scan them first if you're using a barcode inventory system or RFID tags.
4. Choose the right picking method. Batch, cluster, wave, zone – different order-picking approaches suit different warehouses. Check out our complete guide to warehouse order picking to determine the right one for your business.
On the lighter side...
How to de-risk technology adoption
Leveraging new technologies like AI, blockchain, and cloud software can boost the efficiency and visibility of your operations. But that’s assuming you choose the right system for your needs, don’t botch the implementation – and can get staff onboard with new ways of working.
1. Begin with a needs assessment. To avoid getting tempted by flashy features you don’t actually need, create a list of the exact problems you wish to solve with new technology. Audit your existing workflows for inefficiencies, speak to stakeholders across the business, and establish clear goals before you start searching for solutions.
2. Understand and prioritise key features. Research which product features best help with the problems you’re trying to solve. Then work out which of these will benefit the business most based on factors like cost savings, efficiency gains, quality improvement, and revenue generation.
3. Be thorough when procuring new tech. Whether you’re shopping for software or hardware, conduct an in-depth analysis of your options before committing to a purchase. Read online reviews, speak to business advisors, and build a shortlist of the most suitable candidates.
4. Minimise implementation risk. Create a detailed roadmap of the steps to implement your new technology, then ensure that any stakeholders involved understand the process. Conduct a risk assessment and develop strategies for risk mitigation before getting started.
5. Don’t skimp on training! Even if you pick the perfect solution for your needs, it could all be for nothing if the people actually using that technology don’t know what they’re doing. Set aside enough time for employees to properly learn and understand how to use it after you’ve made your investment.
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