What is net present value? Net present value (NPV) is the ‘today’ net value that deprives from ‘future’ cash flow of an investment or a capital purchase. Why does Net Present Value (NPV) matter? Imagine you are buying car for personal use. Would you buy a fresh new car or an used car? Of course, fresh new car is often more expensive than the used one, but its life-time tends to be longer. For example, price for a new car…
Safety stock is an important and interesting concept in inventory management. However, not every procurement professionals can explain this concept clearly. Some mistake safety stock level with reorder level. Even CIPS Study guide L4M7 does not provide any formula to calculate or at least estimate the quantity of safety stock. Fortunately, the resources on Internet are plenty and free. We have done some research and in this post, we will explain the use of safety stock, formulas to calculate the…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
The term ‘material handling equipment’ is relatively familiar with people working in warehouse areas. It encompasses a diverse range of vehicles, tools and storage equipments. Typically, a warehouse is used to store items, and then move them to where they are needed. The easier it is to move items, the more efficient your warehouse can be. To increase efficiency, you need to have the right tools for the job – it will make your employee’s lives easier, and cut down…
If you ever work in a warehouse, definitely you have been familiar with U-flow or through-flow layout. These two layouts may sound different, but they are designed based on one assumption: The traditional arrangement of racks (where racks must be parallel with each other, and if possible, the cross aisle should cut the aisles between racks at right angle) is the most effective. Figure 1: The traditional layout (Source: Kevin Gue’s blog)By common sense, some people might think that this…
Having positive relationships with stakeholders is just a beginning. The real objective here is getting work done by facilitating the information flow between stakeholders and procurement. The information is exchanged voluntarily, even when an organisation forces its people to dutifully exchange the information with other co-workers, some can still withhold for their own sake. Good relationships with stakeholders will reduce the motivation for withholding the information and increase the collaboration. Still, the procurement professional should know how to communicate effectively…