Put simply, supply chain optimization means using technology to get inventory to the right place at the right time – at the lowest cost and highest profit for your business. Supply chain optimization can be explained as aiming to minimize operating costs and streamline processes throughout the supply chain to...Read more
A supply chain strategy explains how a company will bring goods into the business and get them out to customers as effectively as possible. Considering every phase in the supply chain, such as sourcing goods, logistics and delivery, the strategy optimizes operations to reduce costs and maximize profits. Supply chain...Read more
You’re a manufacturer who is working on an order when you realize that you’re out of a necessary component due to a sudden increase in demand, meaning you’ll have to order that part and wait until you receive it to finish the order for your customer. Or maybe you’re a...Read more
Determining appropriate levels of stock across a business can be very challenging. If you carry too much inventory, you risk tying-up much needed working capital. But if you don’t carry enough, you face stock-outs and reduced service levels. An important piece of this puzzle is to accurately calculate safety stock levels. Safety...Read more
Reordering point planning involves calculating when stock levels hit a point at which it’s the right time to reorder. This often involves taking into account demand forecasts, current stock levels and lead times, but there are simpler options. It’s important to get reorder point planning right; if you order too...Read more
Fact: not every product in your warehouse sells at the same pace throughout the year. Some will experience peaks and troughs in their sales due to the coming and going of seasons and months. While you may think this is an obvious statement, many businesses still struggle to forecast for...Read more