This paper explores the typical storage technologies and configurations as well as provide general application advice for each. In addition, we provides the fundamental process to mathematically determine your optimal storage density based on the characteristics of your inventory and order mix.
Best practices in the Supply Chain can be elusive, dynamic and expensive.
Those that involve the procurement of tangibles such as equipment, automation
and software need to earn their keep and pay back to the owner by delivering
shareholder value and/or improved customer service.
There are those projects that are justified based on non-financial forces such as
image, regulations or sheer desire. For all others, there must be a financial payback.
In terms of basic accounting, the name of the game is to maximize profit. This
requires that you increase revenue and/or reduce ongoing periodic on sporadic
expenses. Thus there are two ways we measure the ROI of an investment; does it
reduce costs or increase revenue over a given period of cash flow?