Effective logistics planning aligns network strategy, inventory, replenishment, warehousing and transportation to improve customer service and control costs. Learn how manufacturers and distributors can build more resilient, scalable supply chain networks.
Inflation is rising faster than at any time in recent memory. Businesses must deal with rapid cost increases by managing cash flow efficiently and communicating effectively with customers and suppliers. The benefits of inventory reduction must be balanced against the need to maintain critical stock for top customers.
As executives continue to navigate these volatile economic conditions, the focus on inventory management increases. It is especially tough to determine what to do if you don't know if sales opportunities will dramatically increase as the competition falters and consumers drive demand or if sales will tank as recession fears increase and business optimism falters.
Manufacturers are experiencing continued inflationary pressures threatening customer service and profit margins with record-breaking price increases and lack of material availability. To add fuel to the fire, they are also starting to worry about preparing for a potential recession.
After months of shortages and supply chain disruptions, many retailers suddenly found themselves with excess inventory. Lisa Anderson discusses how shifting demand and the bullwhip effect contributed to the dramatic swing from empty shelves to overflowing warehouses.
Since the pandemic, it has been a constant battle to ensure material availability, let alone to proactively manage cost and service. Even the most proactive and successful clients have experienced brief shortages of key materials and extended lead-times. The rest have been plagued with these issues.
Effective replenishment planning helps manufacturers and distributors improve customer service while controlling inventory and logistics costs. By aligning demand, inventory positioning, transportation, supplier capabilities, and replenishment strategies, companies can increase inventory turns, strengthen working capital, and improve supply chain responsiveness.
"The minority of clients that are proactive were using just-in-time principles, but in a way that works during the pandemic," said Lisa Anderson, President of the LMA Consulting Group. "As a decision-maker, I need to have a certain amount of safety stock, but I will replenish that as we take orders, and we'll replenish those reserves [...]
Several clients are wondering, “Is JIT Dead?”. Definitely not. Just-in-time inventory planning is a best practice inventory management process. If you are literally ordering just-in-time from China and expecting to not experience disruptions without strategic stockpiles, capacity or agility built into the picture is not smart. On the other [...]
Forget 'If It Ain't Broke, Don't Fix It' All bets are off in these unprecedented times. What worked yesterday might not work tomorrow. Take a fresh look at your product supply strategies. Should We Make or Buy? Many executives outsourced when it was the popular and often a smart [...]
