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 […]

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 […]

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! […]

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 […]

ABC inventory analysis

Quickest Way to Perform ABC Inventory Analysis- Based on Value, Volume & Frequency of Sales

In supply chain most of us has been performing ABC inventory analysis for many years and in many different ways. This method has served us well and gives us several advantages. However, most supply chain analyst perform ABC analysis on value as you can see in this Wikipedia article and YouTube video. Over the years I have developed an algorithm to perform ABC inventory analysis which is based on Value (£ or $ ), Volume (Qty/Units) and Frequency (number of lines) of sales. I have performed this analysis in many different business and plants I’ve worked with and it has given […]

JIT Supply Chain

11 Supplier Selection Factors to Establish JIT Supply Chain

In a JIT supply chain, reliable suppliers will reduce supply uncertainty and make the supply chain more effective, therefore supplier selection is crucial. However, Purchasing in JIT environment is different and therefore it requires a slightly different mindset for selecting suppliers who can survive in JIT Supply Chain long term. Researchers1 suggested that the selection and evaluation of supplier’s ability to delivery in JIT Supply Chain should be based upon the following factors: JIT Supply Chain- Quantitative & Qualitative Supplier Selection Factors 1.      Delivery of a Quality Product 2.     Delivery On-Time. 3.     Frequent Deliveries. […]