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If so, optimizing your inventory management strategy can be a game-changer. Imagine shipping products directly from your supplier to your customer while maintaining the appearance that your business is the source. This method offers a solution to various inventory and shipping challenges for businesses just like yours.
Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management.
Suddenly, managing inventory is the name of the game for companies trying to manage working capital and maximize profit while keeping customers happy. And that’s where real-time perpetual inventory signals come in. Plus, accurate inventory information is the key to optimal decision-making.
Compared to peer group performance for 2013-2023, 59% of the Gartner Top 25 score below their peer group on average revenue growth, 41% below inventory turns, and 41% below their sector on invested capital. The data outcome is open source and can be used to improve project outcomes. The answer is not th e Gartner Top 25.
Companies leaning heavily on global sourcing? manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. Strategic moves like bulk buying, closer supplier partnerships, and syncing procurement with supply chain planning can tighten inventory, cut waste, and free up cash.
Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust.
Let’s explore them briefly in this blog post. The post IBP Scenario Modeling for Recovery, Restructuring and Resilience appeared first on AIMMS SC Blog. Our second webinar delved deeper into the technology aspect, focusing on analytical capabilities and scenario modeling. Use case 1: Initial emergency response.
Supply chain was defined in 1982 as interoperability between source, make and deliver. It includes hedging strategies, alternate bill of materials, supplier sourcing strategies, changing routs to market, redesigning push/pull decoupling points, demand shaping policies, and use of outsourced manufacturing and distribution.
Your Aftermarket Supply Chain is More Complex Than You Think: Stop Guessing, Start Optimizing Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas.
To mitigate risks, many companies are incorporating alternate parts into their sourcing strategy. Here, we highlight some of the obstacles with alternate parts sourcing and discuss key considerations to help streamline the process. 5 ESSENTIALS FOR SOURCING ALTERNATE COMPONENTS 1. Ensure parts originate from a trusted source.
They write, “This includes tackling bigger issues such as compliance, supplier relationship management, risk and disruption, responsible sourcing, and transparency. IoT devices track inventory in real time, providing valuable insights into stock movement, reducing waste, and ensuring products are available when needed.”
Technological Advancements Real-time inventory tracking and predictive analytics give leading firms a competitive edge. Optimize Inventory and Pricing Use AI-driven insights for stock mix optimization and dynamic pricing, reducing excess stock while meeting service level goals.
Traditional demand forecasting methods often fall short, resulting in inefficiencies, excess inventory, and lost revenue. Machine learning is transforming the demand planning process, enhancing demand forecast accuracy, optimizing inventory management, and strengthening supply chain resilience.
In a recent blog post, I was challenged by Anna. ” Anna, this blog post is for you. ” Anna, this blog post is for you. If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? Go to the source.
In modern distribution networks, meeting service levels requires getting precisely the right inventory to the right locations at the right time. Today’s most successful businesses derive significant profit from “ long-tail ” products that traditional forecasting struggles to manage.
Manufacturing can not only use IoT for manufacturing, but also to give inventory management greater flexibility and improve decision-making. How IoT works with inventory With inventory management being a key factor in profitability and cost containment, active inventory management is essential.
This blog offers a clear, practical overview of what spend analysis is, how it supports strategic sourcing, and why it matters for both direct and indirect procurement. When done right, spend analysis enables cost savings, supplier optimization, risk reduction, and more strategic sourcing decisions.
Dive into our curated list of the top 12 blogs from 2024 that will elevate your supply chain knowledge and give you a competitive edge. However, it covers key differences between purchasing and procurement, explores common contract types, and emphasizes the importance of strategic sourcing, supplier relationships, and risk management.
Your Aftermarket Supply Chain is More Complex Than You Think Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas. The outcome?
With so many moving parts—suppliers, inventory, and logistics—distributors often find themselves stuck dealing with one crisis after another. Advanced ERP such as Kechie ERP equipped with AI-driven forecasting capabilities can help distributors manage inventory more effectively.
A resilient supply chain incorporates alternative sources, carriers, routes, and other characteristics so that it can flex in response to a situation. To build supply chain resiliency, leaders should consider these factors: Buffer inventory and shift away from JIT.? Your plan should address technology, processes, and people.
My email box is full of the “ain’t it awful blogs. Let’s Start With a Discussion on Inventory. When we look at table 1, we see burgeoning inventories in some industries and extreme shortages in others. We are not good at inventory management. Inventory Levels Over the Quarters of the Pandemic.
In this blog, we cover the key differences between procurement and supply chain management, and explain where the biggest disconnects typically occur. In many organizations, procurement also plays a critical role in ESG compliance, innovation sourcing, and maintaining business continuity during supply disruptions.
There is a strategic incentive in understanding the optimal sourcing location for specific customers, and the optimal sourcing location for different resources. Study 3: Identify Optimal Sourcing Locations . Study multiple resource utilization what-if scenarios and accommodate your production and inventory plan accordingly.
The data can be used to identify inefficiencies in the supply chain, improve inventory management, and streamline operations. Supply chain management The international sourcing of automotive components is now a common practice but it can still present challenges. An ERP provides a central repository for all a distributor’s data.
I could write a blog about each story, but let’s save that for coffee.) As I type this blog post, I face my flowers blooming in my backyard. In this blog, I give my thoughts on the fit of these approaches for value. I don’t think so. My 67 quantitative studies over the past decade do not support the value.
In todays volatile retail landscape, organizations face unprecedented challenges across both category management and inventory planning. To remain competitive, retailers must embrace a comprehensive approach that taps into the synergy across all functions from category management to inventory allocation.
Thats why we champion a hybrid approachone that integrates probabilistic forecasting with machine learning to deliver more accurate demand predictions and optimize inventory levels in supply chain operations. A strong statistical foundation is essential to navigate the inherent unpredictability of demand.
It leverages historical data, competitive intelligence, and external factors to guide inventory planning and resource allocation. Image source: Stefan de Kok 2. For example, Aston Martin faced growing demands from an international clientele and needed to improve first-time availability without increasing inventory.
June 10, 2025 Blog Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 98% to $5,488/FEU. Asia-US East Coast prices (FBX03 Weekly) increased 61% to $6,410/FEU.
The stakes are high, in previous blog posts New Tariffs Are Coming and The Pressures of Omni-Channel Fulfillment and Returns Are Growing. Inventory management has similarly evolved from static calculations to autonomous orchestration. Second, visibility is expanding from enterprise-centric to ecosystem-wide.
Look no further that the blog of the Whitehouse Council of Economic Advisors for commentary on the connection between supply chains and inflation. Supply shortages, low inventory to sales ratios, and hiring lags are noted as factors at play. Data as recent as the end of June 2021 show that inventories remain below 1.3
Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible. This advanced analysis allows businesses to predict promotional lift with unprecedented accuracy, ensuring optimized production schedules and inventory positioning through sophisticated supply planning.
There won’t be a new normal, just new sources of disruption, from weather to government policies to industry conditions. Don’t expect to plan for every disruption; instead, develop a strategy to overcome supply chain disruption, regardless of the source. Price fluctuations and sourcing issues. Trade disputes and tariffs.
Strategic Sourcing Simplified: Best Practices for Maximizing Value Strategic sourcing goes beyond cost savings its about making informed decisions that drive long-term value. Now well dive into best practices in these critical areas to ensure a more effective and resilient sourcing strategy.
Now’s the time for businesses to look back at the strain that rising inflation put on their supply chains and inventory management. In this blog, we’ll explain the impact of rising inflation rates on inventory and supply chain management. Transportation Expenses: Logistics costs, especially fuel prices, have skyrocketed.
In this blog, I also make the argument that if you follow the Gartner Magic Quadrant direction, you may decrease the value of the firm. In the Gartner Top 25 methodology, we find that 59% of the Top 25 winners score below their peer group on average revenue growth, 41% below inventory turns, and 41% below Returned on Capital Employed (ROCE).
What is Vendor Relationship Management (VRM) and Why It’s Essential for Your ERP and Inventory Software? Strong vendor relationships are critical for business success, especially when it comes to managing inventory and procurement. Stay tuned for our series of insightful blogs—your roadmap to exploring the full potential of ERP.
We’ve found our customers are urgently seeking ways to better plan around supply chain demand volatility and improve how they source materials and products from suppliers. We hope you enjoy the blog, which represents predictions and observations from across our global ToolsGroup community. Read our blog on open supply chain platforms.
If you do the math there, you have to make 748,000 inventory decisions per month. So our main task now is to consolidate all the purchase and inventory decisions in one team. We had to transfer and move inventories from one place to another, trying to save them as much as possible. Decisions were made within 24 hours.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions. For example, you might source from a domestic supplier that doesnt incur a tariff.
Lack of preparation can lead to stockouts, excess inventory, cost overruns, and service failuresnot to mention stress and sleepless nights. On the other hand, businesses that embrace uncertainty as a strategic advantage can adapt faster, mitigate risk, and outperform competitors through effective supply planning.
delivers unmatched supply chain actionability and rapid decision-making capabilities through its end-to-end demand sensing and inventory optimization solutions. Manufacturers reshoring production can now leverage AI-recommended demand forecasts and SKU-level inventory rebalancing recommendations to meet unfulfilled demand. ThroughPut.AI
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