The supply chain landscape is constantly shifting, so keeping a close eye on operations is essential if you want to stay efficient.
Even the smallest slip-up can turn into a major problem for the whole process.
By taking the time to spot and fix weak areas, you’re setting up your supply chain for success.
Check out the full video below to learn about the critical elements you need to keep on your radar.
Today, let’s explore five key supply chain fixes for your operation.
Warehouse Expansion
There’s been a spike in the demand for warehouses. Many companies are expanding or redesigning their spaces to accommodate increased inventory due to pandemic-related supply chain disruptions and rapid business growth. Australia, Southeast Asia, and the Americas are all seeing increased activity in this area.
Service Cost Analysis
Cost-to-serve analysis has gained traction as companies seek to fine-tune their expenses. This method provides a detailed look at where supply chain costs accumulate, helping companies become more efficient. Compared to traditional reporting, cost-to-serve allows organizations to target inefficiencies more accurately.
Inventory Optimization & S&OP
Managing inventory well is vital. Companies are reducing excess stock and adopting better demand planning and Sales and Operations Planning (S&OP) practices to free up working capital. Effective planning reduces inefficiencies and has a positive impact on overall performance.
Managing Ocean Freight
With ocean freight costs fluctuating, companies are exploring ways to optimize freight usage and reduce expenses. Efforts include improved container utilization and consolidation to cut costs. It’s essential to adapt, as freight rates are still in flux.
Outsourcing Logistics
Outsourcing warehousing or logistics is also popular, as companies aim to cut costs and boost efficiency. Finding reliable providers is essential, as outsourcing can sometimes lead to service challenges.
Related articles on this topic have appeared throughout our website, check them out:
- 9 Barriers to Optimal Inventory and How to Break Them Down
- Cost to Serve – A Smarter Way to Improved Supply Chain Profitability
- The 7 Principles of Warehouse and Distribution Centre Design
- Insourcing or Outsourcing Logistics: Don’t Choose the Wrong Reasons
- 10 Freight Management Mistakes and How to Avoid Them
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 07, 2023, under the title “5 Supply Chain Fixes for 2023“.