With supply chains always evolving, you can’t afford to take your eye off the ball when it comes to management and efficiency.
One minor oversight can quickly lead to bigger issues down the line.
By staying proactive and looking for areas to improve, you’ll keep your supply chain on track.
Watch the full video below for the key points you need to stay on top of.
Here are the 5 Supply Chain Fixes:
New Warehouses
The need for new or upgraded warehouses is on the rise. Many companies are facing unprecedented demands for space, partly due to post-pandemic inventory requirements and rapid growth. We’ve seen significant demand for warehouse projects globally, from Southeast Asia to the Americas.
Service Cost Analysis
Cost-to-serve analysis is one of the top supply chain focuses this year. This analysis helps companies pinpoint where costs are accumulating. Many organizations are now doing these assessments to manage expenses better and streamline operations. Unlike traditional reports, cost-to-serve analysis provides deep insights that can transform cost management strategies.
Inventory Optimization & S&OP
Improving inventory management and Sales and Operations Planning (S&OP) has been essential for reducing excess stock and freeing up capital. Best-in-class companies already have strong planning processes, but many smaller organizations are catching up, realizing that good demand forecasting and planning can drive business improvements.
Improved Ocean Freight Practices
With ocean freight costs fluctuating, companies are re-evaluating their freight strategies to control expenses. After significant increases, freight costs are now stabilizing. Many companies are optimizing container space and offshore consolidation points to cut costs.
Logistics Outsourcing
Outsourcing has become a big trend, with companies looking to reduce costs and increase efficiency by partnering with external providers. However, outsourcing logistics can be challenging, as finding reliable partners is critical to success. Many companies are moving from in-house warehousing to third-party providers as part of their cost-control strategies.
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“.
