In today’s fast-changing supply chain world, staying on top of operations and management is a must for keeping things efficient.
One small mistake can easily snowball into a big issue that impacts everything.
Regularly checking for areas to improve is key to keeping your supply chain running smoothly.
Watch the full video below to get the lowdown on the essentials you can’t afford to miss.
Let’s get into the five key areas for improving supply chains.
1. New Warehouses
First up is the surge in demand for new warehouses or upgraded facilities. Companies globally, especially here in Australia and regions like Southeast Asia and North America, are expanding warehouse capacity to handle larger inventories. The aftereffects of COVID-19 and growth across industries have increased pressure on warehouse space. Many companies are redesigning layouts or upgrading equipment to better handle this strain.
2. Cost to Serve Analysis
Next, we’re seeing a significant focus on cost to serve analysis. Over the past year, the number of cost-to-serve reviews we’ve conducted has skyrocketed, reflecting the importance of cost efficiency. Traditional reporting systems often don’t offer enough detail, but cost-to-serve analysis gives a clearer picture of areas with high supply chain costs. This approach allows organizations to streamline operations, benefiting the bottom line.
3. Inventory and S&OP
Effective inventory management and Sales and Operations Planning (S&OP) are essential in today’s environment. Many organizations are focusing on reducing excess inventory and improving demand planning. Leading companies have already adopted robust systems for this, and now others are catching on. Today, inventory management can’t just be done on spreadsheets or whiteboards—detailed planning systems are essential.
4. Ocean Freight
Given recent ocean freight cost fluctuations, companies are re-evaluating their strategies. Costs surged over the past couple of years, prompting efforts to improve efficiency, such as container optimization and consolidation. With costs leveling off, businesses are focusing on efficient practices to reduce expenses.
5. Outsourcing
Finally, outsourcing has become more common, with many companies moving warehousing or logistics operations to external providers. This trend allows organizations to cut costs while maintaining service quality. However, finding reliable outsourcing partners has become challenging.
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“.
