Additionally, the annual survey found that 40% of respondents now service an e-commerce channel, up by 6% from 2014. In fact, Logistics Management’s “2015 Warehouse & DC Operations Survey” found that the average number of SKUs increased by 18% last year, average annual inventory turns topped nine, and 38% of respondents were planning on handling even more SKUs in the year ahead. Operators of DCs have seen more stock-keeping units (SKUs) to manage and more inventory turns. While ISM’s latest research indicates some further slight contraction in inventories, the overall pattern the last few years has been one of growth-and that has meant more inventory to manage. It wasn’t until November of last year that the “Institute for Supply Management (ISM) Report on Manufacturing” indicated a slight contraction in manufacturing activity, the first such result in 36 straight months. manufacturing and related purchasing was on the rise. In the rush to meet the needs of multi-channel commerce, the need hasn’t been so much about reducing inventory, but rather controlling it in such a way that a common stock of inventory can be used to fill orders for multiple channels. A growing economy over the last few years and the continued rise of e-commerce have warehouse and DC managers under pressure to get goods out on time to multiple channels.
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