Time to tighten up on inventory management

The first key takeaway from the article is that due to stock outs and hurried purchases on a
variety of products, the first wave of the Covid-19 epidemic also resulted in overstocks in several
categories due to industry closures in other areas. Beyond that, the volume of online orders for
many businesses has equaled or surpassed the volume observed during the holiday shopping
season. As a result, many businesses have out-of-control inventory inventories. Additionally, it
goes beyond simple modifications. When history is only partially useful, planners must
nevertheless find a means to make plans. It's a good opportunity to reconsider inventory
management strategies when you consider ongoing difficulties like trying to maintain inventory
accuracy in warehouses and maintaining forward-pick zones scheduled efficiently.

The second key takeaway from the article is that the planning and execution phases of inventory
management make it applicable to DC operations. While corporate-level inventory planning is
the norm, other businesses employ tools like inventory optimization programs to determine how
much inventory should be kept at each DC. A higher level of inventory accuracy and visibility
across supply chain nodes, including warehouses, will likely be required to bring inventory under
control in the long run. This planning will also likely need to be more adept at evaluating the
impact of current demand signals.

The third key takeaway from the article is that with pandemic effects now continuing into 2021,
AI-based planning software has already learned how commodity spikes develop and is now
better able to anticipate future commodity spikes. Commodity price increases are once more
being observed, as we can see with the current increase in the epidemic. Customers should be
able to find toilet paper on their local shelves because everyone and every tool is a little bit
smarter this time around. This is because the engine has seen this before and will react more
quickly this time. In order to have insight into actual resupply arrivals rather than using more
conventional lead times, solutions like control towers are still crucial for supply chain execution.

2020 Warehouse/DC Operations Survey: COVID-19 pandemic hits, operations respond

The first key takeaway from the article is that when it appeared that the speed of change for
warehouses and distribution centers (DCs) couldn't possibly accelerate past what it has over the
previous few years, COVID-19 arrived to demonstrate exactly how quick that pace of change
can be. The pandemic has had a substantial influence on operations in terms of worker safety and
e-commerce duties, according to their annual Warehouse and DC Operations Center Survey.
However, it also reveals that, despite certain challenges, the majority of businesses are making
modifications.

The second key takeaway from the article is that the majority of responders also state that they
have improved warehouse procedures and inventory management since March 2020, and 87%
intend to keep at least part of these health-related practices when the epidemic ends. While
COVID-19 has been painful and disruptive in many respects, it has resulted in an increase in e-
commerce fulfillment activity for many DCs. When asked about the rise of e-commerce since the
pandemic started, 10% of respondents said it had increased their e-commerce channel by 60% or
more, while a combined 34% said e-commerce had increased by 30% or more.

The third key takeaway from the article is that overall, the 2020 poll reveals an industry that is
deeply in transition, driven by the pandemic and the dramatic increase in fulfillment pressure
from e-commerce. This year's main concern is the pandemic's accelerated rate of operational
change and demand. Most organizations weren't thinking about the need to clean and keep
workers separate safely a year ago, but they are today. Additionally, this year's growth in e-
commerce is advancing the trend toward greater automation and information system support in
order to fulfill orders effectively and meet the customers' expectations for quick order delivery.