Inventory Reduction Strategies

18 Targeted Inventory Reduction Strategies for Supply Chain Professionals

Inventory comprises an important part of current assets, particularly in manufacturing industry. A lot of cash flow is committed to inventories so as to ensure a smooth flow of production to meet a demanding customer service level. However, maintaining inventory also involves holding or carrying costs along with opportunity cost. Therefore, identifying inventory reduction strategies becomes critical for supply chain and operations professionals.   Inventory management therefore plays a crucial role in balancing the benefits and disadvantages associated with holding inventory. Efficient and effective inventory reduction strategies go a long way in the successful running and survival of a business firm. As Apple CEO Tim Cook says:   Here is […]

Supply Chain and Procurement

The 25 Best Supply Chain and Procurement Twitter Accounts to Follow

The 25 Best Supply Chain and Procurement Twitter Accounts to Follow have been selected from many Supply Chain blogs. Well, it is all thanks to Twitter as it provide us instant access to the inside workings of some of the best Supply Chain and Procurement blogs in the business, and you’d be a fool for not tapping into it. Supply Chain and Procurement is an ever-evolving field that can, from time to time, leave us feeling overwhelmed. So, if you need all the up-to-date and most dependable insights and updates, you need to follow the best blogs. And while there […]

supply chain best practices

19 Tested Areas to Seek Supply Chain Best Practices

Companies striving to achieve and sustain competitive advantage generally try to seek and implement supply chain best practices. It could be reasoned that these supply chain best practices significantly improve product quality, customer service level, increase market share and return on assets, and as a result, companies’ overall performance has been improved. The role of leadership, particularly transformational leadership, on implementing these supply chain best practices is difficult to explain and judge. However, what is visible that any efforts people make to implement supply chain best practices in pursuit of achieving competitive advantage will not go wasted. There are many saying like “it’s better to aim high and miss the […]

Online Logistics Courses

Top 6 Online Logistics Courses That Can Benefit Aspiring Logistics Professionals

There are a number of excellent Online Logistics Courses available to aspiring logistics professional that offers international professional qualifications in logistics. These Online Logistics Courses brings unique benefits with the standards you would expect from an international organization. The Online Logistics Courses are delivered by accredited training providers. There is a badge of international recognition associated with some courses with full details of membership benefits and the criteria which applicants must meet is set out separately. The objective of this Online Logistics Courses is to enable aspiring logistics professionals increase their confidence, knowledge, and skills in Logistics. After my blog […]

Vendor Managed Inventory (VMI)

Vendor Managed Inventory : A Step-by-Step Guide, Benefits and Risks

Given the disruptive nature of the supply chain dynamics, an important aspect of supply chain planning and control is the attempt by supply chain managers to improve supply chain performance. One way of avoiding this is to allow an upstream supplier to manage the inventories of its downstream customer. This is commonly known as vendor managed inventory (VMI). Vendor managed inventory (VMI) is a supply chain initiative where the supplier is authorized to manage inventories of agreed-upon stock-keeping units at customer locations. The benefits of Vendor managed inventory (VMI) are well recognised by successful retail businesses such as Wal-Mart. In […]

customer supplier relationship

10 Must Have Customer Supplier Relationship Areas – How Many You Have?

There is an argument that suppliers achieved excellence when they work with excellent customers. This means that the customers should strive for excellence and assist the suppliers to do the same to achieve best customer supplier relationship? Customer must ensure that both parties are working toward continuous improvement of customer supplier relationship. Good supply chain management alone will not make a manufacturer a good JIT operator. The relationship should be stronger if both parties are to gain benefits from it. It should be mutual, with both sides seeking to achieve excellence in customer supplier relationship. 10 Must Have Customer Supplier […]

Warehouse Management Books

Highly Rated Top 6 Transportation and Warehouse Management Books

There are a number of Warehouse Management books for Warehouse and Transportation; it can be quite challenging to decide which Warehouse Management books comes out top and can easily be referenced for purchase. Some have found it really difficult in deciding which one is best, but I can assure you every Warehouse Management books book has its own advantage but some just stand out of them all. Today, I have decided to help you by recommending these 6 awesome Warehouse Management books: 1.     Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse 2nd Edition […]

inventory management and control

How to Develop Traffic Light Inventory Management and Control Report in Excel to Reduce Stock Outs

Please raise your hand if you’ve ever panicked when your boss asked the question how many items are Out of Stock from Made to Stock list? Or How many items we are carrying too much excess stock? And it is not unusual that your boss wants this information in next 5 minutes! This is where inventory management and control report comes into play. Just to clear one point from start, I am not talking about inventory management and control reporting system from warehouse physical inventory control perspective but I am talking about inventory management and control report from a  planning/management […]

supply chain risk

10 Supply Chain Risks You Need to be Mindful of to Avoid Disruption

As supply chains have lengthened and more complex, supply chain professionals are increasingly responsible for anticipating and eliminating a greater number of supply chain risk. The stakes are high: in the past five years, nearly three-fourths of companies experienced significant disruptions. Which makes topic of ‘supply chain risk’ very important in current context. 1.    Supplier Risk There are several supply chain risks involved with working with other companies especially in the supply chain where there is high dependency on the other firms. These supply chain risks can vary from a supplier going bankrupt to not delivering the right quantity of […]

Safety Stock Formula

6 Safety Stock Formulas You Can Consider in Your Next Calculation Cycle

Safety stock is a term used to describe the additional quantities of stock held by a company to mitigate the risk of running out of stock. This therefore acts as a buffer in case the supply and demand are different to what was planned or forecasted. There are many ways in which to calculate safety stock and there are plenty of Safety Stock Formulas available which you could use. Below we will go through 6 different Safety Stock formula definitions to get a comprehensive figure for safety stock. At the end we’ve given you a ‘bonus track’ of EOQ calculation! […]