The digital age has been here for quit some time. One industry that has be changed significantly is the music industry. For over 50 years the music industry was a batch industry. Musicians released music in batches to the public in the form of albums. Then batches of albums would be manufactured and sent to stores before finally a consumer would buy a copy of the album.
The digital age has made it possible for the music industry to go to a single piece flow. The middle man or seller has done taken advantage of it. Now you can go to iTunes or Amazon or other websites, pick what songs you would like and download them one at a time.
Why haven’t the musicians taken advantage of this though. Musicians are still releasing songs in batches (albums) even though the consumer is downloading just certain song off the album from the internet. Why don’t musicians create a song and then release it and not wait for batches of songs to release together? It might allow more songs of theirs to be downloaded because a song is getting played, the fans hear it, and then buy it. When done in batches, only a couple of songs get played and the rest of the album may be heard by the fans if they buy the whole album or it may not.
Leveling the release of the songs in a single piece flow seems like it would be beneficial to the musicians. Allowing more of their songs to be played on the radio, which I would think would lead to more downloads and more revenue for the musicians.
Just a thought in a way to use the digital music age to their advantage. What are your thoughts?
Walmart has decided to breakdown some of the orthodoxies that it has always had when it comes to shipping product (article here). No longer will they wait for the supplier to deliver the product to their distribution warehouses. Now Kelly Abney says,
“…it’s all about squeezing out costs by keeping Wal-Mart’s own trucks busy and by accepting delivery of merchandise at the supplier’s loading dock instead of at a Wal-Mart distribution center.”
This seems like the right thing to do. Distribution centers are non-value added for the consumer which means they are nothing but a cost (or waste) for Walmart. Does this mean they won’t have any distribution centers? The article does not say what it means for the DCs. My thoughts are there would still be DCs but maybe they need to be smaller because less is going through them saving on equipment, manpower, land, etc… Also, what is mentioned but now focused on, is Walmart is trying to utilize its resources and not just source out everything and let their resources have waste in their processes.
Abney also says it allows suppliers to,
“focus on what they do best, manufacturing products for us.”
The main reason for this change is Walmart is having a big enough problem with receiving errors at the distribution centers. Errors like:
“…missing pallets or delayed shipments.”
How does Walmart picking up the goods at the suppliers’ dock help?
“…when a Wal-Mart driver picks up a load at a supplier’s loading dock that same driver will have to scan each pallet’s RFID tag as it’s loaded. The driver will then transmit the data so it can be matched up in real-time with EDI documents that specify what’s in the shipment. Sending that data ahead doesn’t just give Wal-Mart the inventory information a few hours earlier. It gives the retailer the chance to have unpleasant inventory surprises corrected in minutes at the supplier’s loading dock, not days later.”
I like the concept. Quicker feedback into the loop. I still have a lot of questions though. It is great that the problem is identified right away, but what if they don’t have the correct product or remaining amount available? Is the data collected by the driver given to the supplier after every pickup so the supplier can track trends in types of errors in order to problem solve?
Once the pallets are on the truck, Wal-Mart also gains complete control over when that truck will arrive at the distribution center. Such knowledge creates much more predictability for arrival times, which in turn produces better scheduling options for the loading dock. It also means faster turnaround times. And, stores will know what they’re getting, and when.
Predictability is something that lean organizations strive for. It creates less waste in resource availability. Once this is accomplished, Walmart could take the next step in leveling the flow of trucks throughout the network. I would bet by owning their own trucking and creating predictability they will create more savings then they even realize.