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Planners are uniquely positioned with an end-to-end focus, from procurement of materials, through manufacturing and engineering, to the movement, storage, and delivery of finished products or services. Supply chain professionals use various tools, including supply chain modeling, inventory management, and forecasting.
In the competitive industrial landscape, efficient spare parts inventory management is crucial to maintaining seamless operations and driving profitability. Spare parts supply chains, however, come with their own set of complexities, requiring targeted strategies and specialized tools to meet these unique demands effectively.
New solution debuting at NRF 2025 reduces stockouts and markdowns, driving profitability BOSTON January 13, 2024 ToolsGroup , a global leader in retail and supply chain planning and optimization software, today announced the launch of Inventory.io, an AI-powered solution designed to simplify inventory management and enhance profitability.
Bloated inventories. Despite investments in planning, today, industries hold 28 more days of inventory than in 2004. The larger the number of days of inventory, the greater the cash drag.) Changes in Inventory Year-end inventory values by industry from Y Charts. The story continues. Rising inflation. Next steps?
If you’re managing inventory with spreadsheets , you’re not alone—but you might be falling behind. In this dynamic environment, inventory management powered by spreadsheets is no longer a viable strategy. Why Spreadsheets Are Failing Inventory Management Excel feels familiar. But familiarity doesn’t equal effectiveness.
Optimization is peak efficiency, using the perfect balance of inventory and resources to service customer demand without incurring any unnecessary costs or waste. Optimizing is meaningless without an inventory optimization objective. Of course, inventory optimization is infinitely more complex than yacht racing.
Once upon a time, the world of manufacturing was a relatively stable place. Suddenly, managing inventory is the name of the game for companies trying to manage working capital and maximize profit while keeping customers happy. So how does a manufacturer navigate this rollercoaster?
Excess inventory weighs down supply chains. Manufacturers are shifting to on-demand production to align output with real-time demand. The Hidden Costs of Traditional Inventory Models Traditional inventory models were built for predictability. It ties up capital, wastes storage space, and risks product obsolescence.
This article will examine the challenges Belcorp faced with managing its extensive product range and complex supply chain and how our solution set, which includes Service Optimizer 99+ (SO99+), Demand Planning, and the Multi-Echelon Inventory Optimization (MEIO) model, transformed their operations. It played out as follows.
An increasing lineup of advanced digital solutions have given manufacturers the edge to transform and achieve better inventory control. The manufacturing industry is constantly searching for new and inventive ways to improve inventory management. Types of inventory that can be optimized.
Delays, excess inventory, missed handoffs, and reactive decision-making are all signs of a supply chain that lacks coordination. The factory uses this information to make scheduling and inventory decisions more efficiently. This doesnt eliminate those systems, it organizes the data they produce.
These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. Standard sizes and categorizations play a crucial role in determining the costs associated with shipping products that meet standard criteria in fulfillment centers.
The manufacturing industry faces many challenges, such as a skilled labor shortage, supply chain instability, and inventory management issues. GlobalTranz works with manufacturing shippers every day to move their goods and streamline their logistics strategies. 5 Challenges Facing Supply Chain Managers in Manufacturing.
I helped a manufacturer of men’s underwear grow its market share by testing price points and assortment on Amazon before the launch in brick-and-mortar stores. Traits for seed inventories are determined one to years in advance based on crop testing and weather patterns.) Use the Supply Chain as a Test-and-Learn System.
Introduction Inventory management is the backbone of a successful supply chain operation, but it’s often a source of persistent frustration. Mobile inventory management offers a transformative solution, providing the real-time data and streamlined workflows needed to optimize operations and gain a competitive edge.
A production plan from an IBP meeting should be considered a rough-cut long-term plan, merely the best estimation of what was likely, not something written in stone. Production, in the short term, needed to flex to meet new opportunities and unexpected constraints. This realization led to a new focus on agile planning.
This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing. When we measure the bullwhip impact (in my class on outside-in process thinking), the bullwhip between manufacturing and procurement is 2-3X. Inventory Health. Measure inventory health.
Warehouse Robotics: Systematic Redesign of Core Functions Warehouse operations have historically relied on manual labor for tasks such as picking, sorting, inventory management, and material handling. Langham Logistics used Gather AI drones to improve inventory accuracy from 97% to over 99.9%, while reducing cycle count time tenfold.
Picture this: You’re a warehouse manager, and with a few taps on your smartphone, you instantly know the exact location and quantity of every item in your inventory. That’s not science fiction—it’s the power of mobile inventory management. Ready to turn your inventory from a headache into a strategic asset?
Running a manufacturing business isn’t easy. You’re juggling production schedules, managing inventory, keeping an eye on finances, and making sure everything runs smoothly on the shop floor. That’s where a manufacturing ERP comes in. It’s a lot to handle. Let’s get started.
By maximizing space utilization, improving inventory control , and boosting workflow efficiency, you can unlock significant cost savings and elevate your customer service game. Essential technology solutions, including Warehouse Management Systems (WMS), Inventory Management Systems (IMS), and the transformative power of IoT and automation.
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
Manufacturers refer to it as the shop floor to top floor disconnect. This reflects the difficulty in synching the plans finalized in an integrated business planning executive meeting with what the shop floor is capable of manufacturing and fulfilling in the short-term time planning horizon.
This sector is driven by several factors, including the ageing vehicle population, the rise of e-commerce platforms , and technological advancements in vehicle manufacturing. This shift has led to a growing need for agile inventory management and quick delivery systems.
Just-in-time (JIT) inventory models, lean supplier networks, and offshore manufacturing reduced expenses but left companies exposed to disruptions. The COVID-19 pandemic and ongoing geopolitical shifts demonstrated the risks of relying on single-source suppliers and minimal inventory buffers. Resilience is now taking precedence.
Keeping track of all your moving parts in manufacturing is a tall order. That’s where manufacturinginventory management software comes in. In this ultimate guide, we’ll break down everything you need to know about manufacturinginventory management software.
That’s the power of manufacturing data collection. Manufacturing data collection is your secret weapon for boosting efficiency, cutting waste, and staying ahead of the competition. Manufacturing data collection is your secret weapon for boosting efficiency, cutting waste, and staying ahead of the competition.
In addition, ToolsGroup was recognized as the leader in the 2024 SPARK Matrix for Global Supply Chain Inventory Optimization for the third consecutive year for its ability to reduce costs, maximize profitability, and meet customer’s strategic business goals.
IDC specifically recommended ToolsGroup for manufacturers in all industries, especially those with large SKU offerings and/or complex distribution networks. ToolsGroup gives companies AI-supported capabilities that ensure service targets are achieved with the lowest possible inventory investment, freeing working capital and improving margins.”
According to McKinsey & Company and BoF Insights State of Fashion 2025 report, achieving Inventory Excellence is a critical priority for retailers aiming to remain profitable amidst these economic challenges. ToolsGroup also invites all NRF attendees to visit Lounge #4 to take a spin on ToolsGroups popular Supply Chain Wheel of Fortune.
Technology can automate role-based views up and down the river of demand for all roles: marketing, sales, finance, manufacturing, procurement, transportation, and human resources. As consumers complain of empty shelves, and manufacturers struggle to obtain materials, organizations will struggle to align. The impact is exponential.
For months, retailers have been stockpiling massive amounts of goods to meet surging consumer demand, and compensate for ongoing supply and logistics issues. Inventory management is challenging enough in normal times. So, what is it going to take to enable better inventory management? Complete visibility into inventory.
This capital will help scale the company’s Shared Autonomy Platform and expand manufacturing for its TWA Reach forklifts, which integrate AI-driven autonomy with human oversight to optimize labor and safety in warehouse operations. This includes identifying hazards like guardrail damage, missing signs, and improper road striping.
My definition of a network is the bi-directional information exchange of manufacturing, procurement, quality, and transportation signals across multiple tiers of trading partners in a many-to-many trading partner information exchange with minimal latency. Electronic Data Interchange (EDI) does not meet this definition.
In this scenario, by adopting an adaptive supply chain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. This collaboration enables faster response times and cost savings.
On our first priority of accelerating organic growth, our full-year sales trends did not meet our expectations, driven in part by continued value-seeking orientation and weaker consumer sentiment. The range of bullwhip from the order to planned orders for manufacturing was 2.5-4.0. Outsourced manufacturing had a bullwhip of 8-9.
Inventory is the lifeblood of any manufacturing business. By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. Tracking inventory flow and performance across your supply chain is a must. But what exactly should you measure?
These breakdowns accumulate and threaten the ability to meet delivery commitments. Beyond automation, digital systems like Manufacturing Execution Systems (MES) provide real-time visibility into production activities. As workers wait or try to fix earlier mistakes, machines sit idle. Stay ahead of breakdowns.
Supply chain resilience refers to planning for things that could go wrong and then creating inventory buffers or contingency plans. SCP solutions provide a solid ROI based on hitting targeted service levels with less raw material, work-in-process, or finished goods inventory. The ability to meet that demand can be less than expected.
The research methodology for the Supply Chains to Admire compares the performance of a company against its industry peer group for the metrics of Year-over-Year Revenue Growth, Inventory Turns, Operating Margin, and Return on Capital Employed (ROCE). Think about how multiple solutions could work together to meet your needs.
My Monday morning staff meetings could have been a Saturday night live skit. Frank, the line manager for manufacturing, dominated the meetings. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals. As a result, we shelved Ed’s idea.
In manufacturing, performance improvement, cost reduction and process optimization are crucial. Manufacturers have adopted innovative solutions and technologies to deal with these issues. There is no question that AI and ML will have important roles in shaping the future of manufacturing ERP. What is AI and ML?
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. Effectiveness emphasizes meeting strategic objectives and customer expectations. An efficient procurement process optimizes vendor selection and purchasing decisions to maintain cost-effective inventory levels.
Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison. The first story is about a large regional food manufacturer.
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