Well, well, well... if it isn't our old friend June 📆. As we enter the tail end of 2024, there's no better time to review your operations and tighten up those essential processes. In this week's edition of The Backorder:
- UK warehousing statistics suggest a near-future industry crisis
- 3 simple ways to optimise your procurement processes
- Success secrets from the founder of a luxury outdoor goods brand
Not subscribed yet? Sign up to The Backorder today for free!
In supply chain headlines
- Campbell Soup optimises its supply chain to fuel growth. The company is investing $230 million in network-wide projects to transform manufacturing and distribution, writes Business Wire.
- Manufacturing ranks #1 in cyber attacks for third straight year. The latest IBM X-Force Intelligence Report, which compares over 150 billion security events per day in more than 130 countries, reveals over 25% of events occurred in the manufacturing sector.
- 60% of UK warehouses deemed 'unlettable' by 2030. Most UK warehouses will fail to meet Government minimum energy performance standards following the introduction of energy efficiency regulation this year, explains Liza Helps of Logistics Matters.
Mini-quiz: How well do you know warehouse management?
1. Which of these is not a common warehousing activity?
a) Picking
b) Slotting
c) Stocking
d) Looping
2. Which of the following processes is not related to inventory?
a) Replenishment
b) Costing
c) Qualifying
d) Receiving
3. The first warehouses were invented in the _____?
a) Stone Age
b) Iron Age
c) Bronze Age
d) Industrial Age
(Scroll to the bottom of this page to reveal the solutions)
3 simple tricks for improving your procurement processes
1. Control spend with reorder points.
The ideal time to make a repeat purchase depends on your rate of use, and the time it takes goods to arrive. Avoid over-ordering by calculating custom reorder points for your most common repeat purchases.
2. Refresh supplier price books.
Regularly updating your supplier prices helps your purchasing team take advantage of any volume discounts or price breaks. Done correctly, this ensures you always make the most of your budget.
3. Establish the right KPIs for your business.
You can’t improve what you don’t measure: track supplier lead times, order accuracy, and defect rates – as well as metrics for your own team, such as PO cycle time and the number of urgent purchase requests you manage.
Creating backyard sanctuaries – meet Andrei Newman
We recently spoke with Andrei Newman, Founder of Designer Home Spas – headquartered in Miami, Florida – to learn what life's like for an American outdoor luxury products brand in 2024. Here's what he had to say.
Hi Andrei, please tell us about Designer Home Spas.
"We specialise in luxury outdoor products, including top-tier hot tubs, home spas, and outdoor fire pits. What sets us apart is our commitment to quality, design, and enhancing outdoor living spaces. We focus on creating products that blend functionality with aesthetics, ensuring our customers receive the best in both comfort and style."
What inspired you to launch a luxury outdoor products brand?
"The inspiration came from a personal passion for home improvement and a desire to help others create sanctuaries in their backyards. This journey began in my early career days when I saw a gap in the market for well-designed, high-quality outdoor relaxation products."
What have been your biggest challenges so far? How have you dealt with them?
"The biggest challenges have been navigating supply chain disruptions and managing customer expectations. We've tackled these by forging strong relationships with suppliers and maintaining transparent communication with our customers, ensuring they are kept in the loop regarding their orders."
If you could share 3 pieces of business advice with your younger self, what would they be?
"First, always prioritise customer feedback; it’s invaluable. Second, don’t fear failure; it’s a crucial part of growth. Third, invest in building a robust network; relationships can open doors to opportunities you never imagined."
Is there a particular book that's helped you grow as a founder?
"The Miracle Morning by Hal Elrod transformed my life by giving me a morning routine that boosts my personal growth and success. Using the SAVERS method, I feel more productive and positive each day."
What's one piece of advice you'd give to would-be business owners?
"Always stay true to your mission and values; they will guide you through tough times."
Mini-quiz solutions
1. d) Looping
2. c) Qualifying
3. a) Stone Age
Subscribe to The Backorder today
Start receiving practical tips and supply chain insights in your inbox every week, free. Unsubscribe at any time.
