Do Emerging Markets Represent the New Frontier for Globalization ?
Ever since the onset of the global economic crisis, there has been much talk about how globalization has reached its nadir and that the concept of an integrated global economy leading to prosperity has been discredited. The reason for this cynicism was that many commentators blamed globalization for causing the global economic crisis and plunging […]
Can India Really Guarantee a Minimum Income?
Elections to the central government are due in India in 2019. This is the reason why all political parties have suddenly become very concerned about the economic welfare of the poor people in the country. This is the reason why different political parties are proposing different measures in order to tackle this poverty. One of […]
Reliability and Redundancy in Production Management
Introduction Product quality determines the success with the product. One of the key drivers of quality is the performance of the product over a period of time. Performance of product is determined by the reliability and redundancy. Reliability increases the efficiency while redundancy increases the current capability and expectations. Any production organization sets a goal […]
What Davos teaches us about Networking and Deal-making at the Highest Levels?
What is Davos and why it is so important for the Global Movers and Shakers? Davos, a small town in Switzerland, is otherwise famous for the Annual gathering of the world’s political, business, and celebrity elites hosted by the World Economic Forum or the WEF, a private think tank that has been founded by one […]
The Argentine Currency Crisis
The Argentine economy is no stranger to economic crises. The country saw a massive financial crisis with the currency almost collapsing in the year 2001. Now, seventeen years later, Argentina seems to be back to square one. Once again, the inflation rates in this Latin American nation have started skyrocketing. Also, the declining value of […]
The need for Inventory Migration from one warehouse to another warehouse does not come about very often in Supply Chain Operations. However, sometimes the business demands necessitate a change of warehousing location, setting up a new location or even a change of business model.
The occasion and need for an inventory migration can come about due to many reasons:
There could be many more reasons apart from the situations mentioned above warranting an inventory migration.
A successful migration will depend upon carefully planning, detailing of every activity, simulation and trials, combined with team training and briefing exercises. Such a project involves and affects all functions including marketing, IT, finance, operations, order fulfillment, inventory planners and controllers, procurement, 3PL service provider, transporters, legal and tax compliance teams and finally the management.
The project leader in charge of the project would have to have the knowledge to design operational processes for the entire project coupled with knowledge of the activities and functional departments involved in the entire exercise.
The first exercise involved would be to set up a cross functional project team, drawing leaders from all functional departments. If the proposed operations are being managed by a 3PL, then the team would have to include them as well. In fact, in such cases, the 3PL would need to form an internal project team with a project manager too. Effectively there would be two project teams managing the project and taking joint responsibility. The first team would be from the Principle Company and a second team from the 3PL. While the design, process, budgets, guidelines, project management would be driven from the company, the 3PL will manage to get the new facility ready, set up the team, training, getting ready to receive materials and start operations, besides planning for transportation and inventory movement.
The project being very critical in nature would need a Project Sponsor, who will review as Management and facilitate and coordinate to ensure timely decisions, resources are made available and manage communication with other departments and partners. The 3PL provider too will be required to setup a similar management structure to facilitate the project.
A very important aspect of managing a smooth inventory migration is to build a healthy dialogue and continuous communication with the existing 3PL service provider to ensure the ongoing operations at the project planning stage are not disrupted and the Service provider co-operates with the company and the new 3PL in working together to hand over the inventory and assets belonging to the company as per laid down process and comply. Periodic meetings and contract review discussions have to be held to iron out differences arising out of the situation and would have to be handled sensitively and intelligently with patience.
Your email address will not be published. Required fields are marked *
