Inventory Management Model

The ABC-XYZ Inventory Management Model – Align Planning Parameter with Business Goals

Why Consider Inventory Management Model? One of the leading problems in SCM is the optimization of inventory. Inventory is actually a consequence of other business parameters and policies, such as:   Company goals and objectives: sales target, fill rate goals, purchase price variance, etc Operational policies and parameters: lead times, lot sizes, change over times, safety stocks, replenishment model, frequency and length of planning cycles, etc Efficiency in the execution of those policies: forecast accuracy, manufacturing & quality performance at all levels of the supply chain, etc Number of discrete levels in the business model: vendors, warehouses, factories, distribution centers, etc […]

supply chain policy

10 Things You Should Consider Before Writing any Supply Chain Policy

In most of the business it is often the same people, who are doing the same job. When purchasing materials, the same routines are used on each occasion, even if each and every one of these purchases may be unique, so why we need supply chain policy or procedure ? Similarly, the steps of booking materials in warehouse is same regardless of supplier and part number in most scenarios. Such repeated set of activities is called a process. A more formal definition is presented by Professor Bo Bergman1 : “a process is a network of activities that are repeated in […]

Procurement Book

The Top 7 Must Read Procurement Book for Supply Chain Professionals

Previously I have written blogs about Best Supply Chain Books and Best Logistics Management Books. Both blogs has done well and received lot of appreciation and feedback from Supply Chain community. Some of you have asked which procurement book is best available. Before I start, is procurement purchasing? Or, is Purchasing procurement??? That is the question! Well, in a broad sense, the answer is yes to both but there is a difference – a big difference….. Often used interchangeably with purchasing, procurement is an umbrella term for ‘a sequence of steps involved in the acquiring (procuring) of a product with […]