3 Major Issues Facing Supply Chain Leaders
The job of Supply Chain Leaders is not getting any easier. Continuous financial pressure for cost reduction across supply chain operations is a never ending saga and customer expectations continue to rise as the complexity of most product and service offerings increase.
As the leader of the your distribution or manufacturing supply chain you are required to stay in tune with ever increasing global demand. At the same time volatility in demand has increased. Logistics and large fluctuations in commodity prices impact your production and transportation costs while economic uncertainty clouds your monthly forecasts making accuracy highly variable.
With larger swings in seasonality, unforeseen supplier disruptions and even the ease of ramping up sales and marketing campaigns can all drastically impact your performance and profitability in very negative ways if not properly managed.
With all this uncertainty in the supply chain, there are three key initiatives supply chain leaders can address that ensures everyone within the organization is swimming in the right direction.
Supply chain leaders have big priorities such as customer acquisition and retention. Everyone knows that a happy CEO typically has happy customers. Happy customers are loyal to your brand and your products. Loyal customers result in long-term sales for the business. Supply chain leaders and business owners benefit from inventory optimization by improving overall service levels and fill rates of product delivery because they put their customer at the center of their supply chain. One way to align your people and your process in your supply chain is to implement intelligent inventory management technology to take the manual guesswork and the error out of your operations.
Inventory optimization software enables inventory managers with controllable item level management to ensure the right quanties of stock are always on hand when demand comes knocking. Solutions like EazyStock extend easily from ERP and home grown inventory management systems to extend accurate demand forecasting, inventory planning and replenishment capabilities to the “keepers of the supply chain”. To a CEO, that is gold. In addition to process improvement, CEO’s save costs by keeping faster moving products at higher service levels while reducing the excess stock of slower moving products from inventory.
Through more accurate forecasting, planning and inventory replenishment, supply chain leaders can unlock predictable improvements to customer service. Better customer service means happier, stickier and longer-term customers.
Supply chain leaders report the following process improvement measurements when using EazyStock:
- 5-10% increase in order fill rates and on-time delivery
- 30-50% reduction in out of stocks and order lead-time variability
As a company leader, do you have the right technology in place to ensure processes are seamless and your people are equipped to deliver results across your supply chain?
Find out more on how you can get ahead of common supply chain challenges with our white paper on optimizing inventory replenishment! Download the white paper for free here!