Building the inventory profile. Structuring inventory provides the means to establish an inventory policy for your organisation – based on facts, rather than opinions. The inventory policy is the basis for calculating the amount of inventory the organisation needs to service its customers. An inventory policy allows the CEO and accountant to work with a calculated level of inventory, so … Read More
Inventory is your critical buffer in supply chains
Inventory balances sales and supply. To become more competitive, management continue to make their organisations more efficient. But this has made their Supply Chains more complex. These competitive initiatives have ranged across: increased item (SKU) numbers, additional sales channels, quicker delivery times, outsourcing, global sourcing and low cost country sourcing. As complexity has increased, the processes and IT applications used to … Read More
Collaboration in Supply Chains – hard to be successful
Sales margins under pressure. Retail shopping power is now said to lay with the consumer using their mobile phone. However, it is the retailer and on-line merchant that dictate the channels available and the price per channel. Will the full cost of Internet shopping be charged to consumers? Studies have estimated the total cost of the ‘consumer click and retailer … Read More
Improve inventory decisions: analyse your Supply Chains
What decisions are made. Senior people in government and business can make edicts and statements about financial matters without any factual basis. It is others that have to work within the meaningless constraints or recover from the unintended consequences. This week, the head of Australian Treasury made a statement that expenditure by the federal government should not exceed 25 percent … Read More
One Plan approach ensures more effective supply chains
Your One Plan. Running around to ‘put out fires’ and reacting positively to challenging events looks good as a ‘can do’ attitude. Unfortunately, it is an ineffective and expensive way to operate; instead, try planning. Planning is based on the ‘one plan’ approach – to be truly effective, your organisation must have only one plan. But, to be successful, all affected … Read More