Carlos Diaz is a Senior-level Supply Chain and Operations leader with over 20 years of experience in driving strategic and operational excellence across global supply chains. Currently serving as the Warehouse Logistics Operations Manager at Seprod Group of Companies, Carlos is skilled in managing all aspects of procurement, manufacturing, and distribution management. He leads cross-functional teams to optimize product supply, enhance productivity, and improve supply chain performance. Through this article, Diaz emphasizes the importance of adopting innovative methodologies, embracing e-commerce-driven changes, and leveraging automation and AI to optimize supply chain logistics, enhance warehouse operations, and improve overall efficiency.
Key Milestones and Career Experiences
Throughout the year, I have focused on strategic initiatives and operational improvements that have significantly impacted the organization. Key milestones include:
• Implementation of a Warehouse Management System (WMS) for the Beverage Business Unit: Successfully tailored and executed a WMS that improved inventory accuracy and operational efficiency .
• Enhanced Order-Picking Processes: Introduced the consolidated picking feature in the ISL WMS, which streamlined workflows and boosted fulfillment accuracy and speed.
• Improved Order Fulfillment Cycle Times: Identified and resolved bottlenecks to optimize operations, aligning with best practices to enhance team performance.
• Transition Planning for In-House Warehouse Operations: Initiated the groundwork for transitioning from 3PL to in-house operations, demonstrating my ability to manage large-scale changes effectively.
“Build strong relationships with third-party logistics providers and carriers to scale operations during peak demand”
Innovative Strategies to Mitigate Risks and Ensure Continuity
a. Strengthened Stakeholder Relationships: Fostered stronger ties with haulage contractors, leading to more efficient collaboration and improved logistics performance.
b. Cultivated a Culture of Ownership: Focused on empowering the team, encouraging accountability, and aligning efforts with strategic objectives to ensure sustained improvement.
c. Rollout
Critical KPIs for Evaluating Supply Chain Performance
Key Performance Indicators (KPIs) are essential for assessing supply chain performance and ensuring alignment with organizational goals. The critical KPIs I prioritize include:
• Order Fulfillment Cycle Time: Measures the time from order placement to delivery. By identifying bottlenecks and streamlining processes, I’ve improved cycle times, enhancing customer satisfaction and operational efficiency.
• Inventory Accuracy: Tracks the alignment between system records and physical stock. Implementing Warehouse Management Systems (WMS) has significantly improved inventory accuracy, reducing errors and optimizing stock management.
• On-Time Delivery (OTD): Monitors the percentage of orders delivered on time. Strengthening relationships with haulage contractors and optimizing fulfillment processes have led to more reliable and timely deliveries.
• Cost per Order or Shipment: Evaluate operational costs relative to the volume of orders or shipments. Transition planning to bring warehouse operations in-house has been guided by this metric, aiming to reduce costs while maintaining service quality.
• Warehouse Productivity Metrics: Includes picking accuracy, throughput rates, and labor efficiency. Through features like consolidated picking and fostering a culture of accountability, I’ve driven higher productivity and better resource utilization.
• Using these KPIs, I’ve established data-driven insights to identify areas for improvement, align team efforts with strategic objectives, and deliver tangible benefits such as reduced costs, faster processes, and improved customer satisfaction.
Impact of Digitization and Automation on Warehousing
Current trends in digitization and automation are revolutionizing warehouse operations by driving efficiency, accuracy, and scalability. Key influences and integration plans include:
• Enhanced Warehouse Management Systems (WMS): o Continue refining WMS capabilities, such as advanced picking algorithms and real-time reporting, to enhance operational visibility and responsiveness.
• Automation of Repetitive Tasks: o Evaluate and implement scalable automation solutions, starting with high-impact areas like order picking and packing.
• Internet of Things (IoT) and Connectivity: o Integration Plan: Introduce IoT-enabled sensors and devices to monitor warehouse operations, focusing on temperature-sensitive goods and asset tracking.
• AI and Machine Learning (ML): o Pilot AI-driven analytics to identify trends, predict demand, and optimize storage layouts.
By aligning warehouse operations with these trends, I aim to create a more agile, efficient, and data-driven supply chain that meets evolving business demands and customer expectations.
Effective Demand Planning & Material Requirements Tools
• Sales and Operations Planning (S&OP). Provides a unified framework for balancing supply and demand across factories.
• Enterprise Resource Planning (ERP) Systems. We currently are using 2 different ERPs, one for running the factories and another one to manage the Fulfillment Center. We have launched a project to move to one common ERP.
• Data Analytics and Visualization Tools: Enable data-driven decision-making by visualizing demand patterns, inventory levels, and production schedules. We are using tools like Tableau, Power BI, and Cognos.
Adapting to E-Commerce Changes in Logistics
E-commerce has significantly reshaped supply chain logistics, with heightened expectations for speed, accuracy, and transparency. To stay ahead, I focus on the following strategies:
i. Automation in Fulfillment Centers: Use automated sorting, picking, and packing systems to reduce processing times and improve order accuracy.
ii. Dynamic Routing: Leverage AI and machine learning for route optimization, ensuring faster deliveries while minimizing costs.
iii. Customer Behavior Insights: Analyze buying behaviors to anticipate needs and tailor logistics operations accordingly.
iv. 3PL and Carrier Integration: Build strong relationships with third-party logistics providers and carriers to scale operations during peak demand.
v. Proactive Communication: Provide timely updates on order status and resolve issues promptly to build trust and loyalty.
Advice for Warehouse Logistics Managers in the AI Era
d. Data-Driven Decision-Making: Use AI-generated insights to inform decisions on inventory management, resource allocation, and process improvements.
e. Understand Automation Systems: Gain familiarity with robotic systems, warehouse management software (WMS), and IoT devices to oversee their integration and operation.
f. Lead Digital Transformation: Act as a change agent by guiding teams through technological transitions and ensuring the smooth adoption of new systems.
g. Upskill the Workforce: Invest in training programs to help team members develop the skills needed to work alongside automated systems. Shift focus from manual tasks to highervalue activities like system monitoring, troubleshooting, and continuous improvement initiatives.
h. Bridge Operational and Technological Teams: Collaborate closely with IT, data analytics, and supply chain teams to ensure seamless integration of automation into logistics workflows. Align warehouse operations with broader business objectives, including sustainability and customer satisfaction.
i. Emphasize Leadership and Vision: Demonstrate openness to change and a commitment to lifelong learning. Communicate how automation and AI contribute to long-term organizational success, inspiring the team to embrace these changes.
