Failures in inventory management

During the last last lesson of Logistics we were talking about the management of inventories and its different parameters. This is a difficult issue that appears in the management of every companies, independently of their size.

Here I wanted to comment some troubles that some big companies, like Best Buy, Walmart and Nike, have had with the management of their inventory, in order to observe the difficulty of it.

In December 2011, Best Buy communicated that owing to the hResultado de imagen de best buyigh increase of the demand in some products with deals, they had had problems to supply the 100% of orders of their customers. They apologised for the discomfort caused with the respective notification to the affected customers. The fact that Best Buy failed managing the inventory not only affected the sales, it also diminished their customers’ confidence.

Recently have appeared some problems in Walmart for lack of stock. Little by little, customers have stopped buying their products owing to bad service and to its, each time more common, empty shelves. Waltmart’s logistics is calculated with and amazing accuracy. However, some analysts have attributed the problems to a bad management in their inventory.Resultado de imagen de walmart

Retail sales is a very competitive sector, so a bad management in their inventory can destroy a company soon.

The last example I wanted to mention is Nike. In 2001 Nike failed implementing a software to manage the supply chain. They installed the system of demand’s management without testing it adequately. The result was an excess in stock of low circulation products and a deficit of very popular products like Air Jordan. This supposed the company a loss in sales of $100 millions dollars.Resultado de imagen de nike

As we have observed, a bad or wrong management in their systems of stock management can generate high amounts of loss in their sales, but also of customers, so the management of inventories remains a key piece for companies.




In our last lesson of innovation management, we watched a short video about Upalet, the carton pallet, which is an innovation in the market of pallets. Despite it was in the class of innovation management, I also could appreciate​ a connection with logistics, so I decided to introduce you this new product as an alternative to the traditional pallets, and also its advantages described in its features.

Its main features are the following ones:


Between 1kg to 8 kg compared to 32 kg that can weigh the current pallets


Developed with materials that are not harmful to the environment.Reduces CO2

Recyclable. Sustainable.

The carton pallet is 100% recyclable, even has a residual value that allows the owner to recover part of his investment.

Compact. Accessible.

Thanks to its interlocking stacked for can be stored in a much more compact way, reducing space and optimising transport and storage.


Because of its weight and the useless of metal things is safer avoiding serious accidents. For example, when my father was working as a truck driver, once a pallet fell on his head and cause him a lot of pain. With Upalet, he would avoid suffering that much.


Able to hold 4000Kg the maximum.


Competitive price in the market.

As we can see, the Upalet represents a trend-setting product, which is not only with better features than the current pallets but also is environmentally friendly and sustainable.

Have a look at this promotional video, where you can see in a more fun way the things I just have said. Hope you enjoy!


Ford’s Green Manufacturing

As a international, very recognized and leading brand in the automotive sector, Ford, has been working to reduce the environmental impact from their supply chain involving different green programs to their processes, they have launched the Partnership for A Cleaner Environment (PACE) program that has grown to more than 40 suppliers in 40 countries, the program was originally focused on water and energy conservation, but has now grown offering best practices for reducing waste, carbon dioxide and air emissions.

Their green energy production plant is located in Dagenham, England. On the main plant is the Dagenham Diesel Center, the first automotive plant to receive from the on-site turbiness, 100% of the electricity for its manufacturing needs.

Now Ford’s European vehicles are using mor than 250 pieces containing non-metallic recycled materials (plastic, rubber and cloth). What each year supposes that some 14,000 tons of materials do not finish in the landfills. They have also developed a complete recycling program, which includes the “design for recycling” guidelines, improves the use of recycled materials and reduces the use of hazardous materials.

Last but not least, Mary Wroten, senior manager of Ford Supply Chain Sustainability said, “As a company, it’s important that we make quality products and minimize the impact on the environment by doing things the right way”.





Quick Pallet Maker


Quick Pallet Maker is pallet loading and package design software application that allows the user to calculate optimal secondary package dimensions and pallet arrangements, thus reducing shipping costs, it was developed by Koona, LLC a US-based Software Engineering company.

They are mainly focused on small and medium sized companies, particularly manunfacturers and packaging operators. But not leaving behind corporations.

The software is pretty user friendly and as said before it includes different key features that will allow the user to perfectly manage their packaging operations making it more efficient:

  • Calculation: Complex features for calculating the ideal dimension of each item so as to fit the latter’s capacity.
  • Container fill: Assists the user in organizing multiple-sized objects in a container. It takes into account the dimension of each box and suggests the way how they should be heap up so as the whole cargo gets in.
  • Optimizing costs: Indicates the user how large each pallet should be so as to get a maximum number loaded into a single cargo.

Quick Pallet Maker also has a YouTube channel for their customers to get free tutorials on how to apply the software features, for example, the presented video allows the customers to learn on how the “Filling Containers with Boxes” feature works, providing them to calculate and better fit their delivering order.




Reforestum is an App which led the customers to create a real forest from any electronic device.  The objective is to recover the lost forests of the planet and to help protect the existing ones creating environmental sensitivity.

What this App does is to measure the carbon footprint of your daily activities and  to compare it to the carbon you are capturing through the forests you have created through the platform.  Furthermore you can check the status of your forest at all times, with satellite images, notifications, and photographs.

In this way we can all get involved in caring for and improving the planet. It is the perfect tool to take direct, useful and collective action to solve the problems that our way of life is causing to the planet.


Vertical gardening

A “Vertical Garden” is a system that allows you to cultivate any type of plants (vegetables, decorative, aromatic and culinary ones) in a vertical structure located in small places where no arable land is available.

What in developed countries seems to be a fashion, it begins to be a need in places like Africa.  Everybody have seen lots of luxury houses with a dedicated space for a vertical garden, which give the house an ecological and minimalist effect.

Resultado de imagen de huertos verticales

The problem in Africa is that, due to deforestation and an increase in the price of fertile soil, the farmers has been forced to implement vertical gardening to feed residents of villages.  Thanks to that, the incomes for the farmers are increased and the cost of the farm products are reduced.  In the following video, Paul Matovu (a member of Ideas for Uganda) explains how vertical gardening works in Kampala.




One of the world’s main concerns nowadays are the natural resources; they are becoming more and more scarce that is why people, mostly environmentalists are worried about our future and are looking for ways of prevention and savings. With this concerns, two spanish guys got to an amazing idea that is called AquaReturn; a device that recirculates the cold water first and then tempered until it reaches 35ºC, which allows to save energy. This device works when the user open the tap they do not have to wait until the water reaches the desired temperature, usually the user need to wait a couple of seconds until the water turns warm and those seconds are a waste that this device is avoiding.


AquaReturn is a product design for home use and it works with a boiler, thermo or individual heater but it can also be use in companies or tourist establishment since the since the return system can help for instance hotels that have a high consumption of energy and this system will suit them very good, as well as for families.


This device prevent the water from flowing out until it reaches its consumption temperature, generating significant savings in water, energy and CO2 emissions, resulting in huge economic savings.

In the following image will help you understand the functionality of the device: