Inventory policy is built on the Inventory structure

Roger OakdenLogistics Management, Logistics Planning, Procurement, Supply Chains & Supply Networks

Inventory balances supply and demand - Part 2

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

Roger OakdenLogistics Management, Logistics Planning, Procurement, Supply Chains & Supply Networks

Inventory balances supply and demand - Part 1

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

Improve inventory decisions: analyse your Supply Chains

Roger OakdenLogistics Management, Logistics Planning, Supply Chains & Supply Networks

Inventory depends on analysis and planning

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

Your customers will pay their accounts on time, maybe

Roger OakdenGlobal Logistics, Logistics Management, Supply Chains & Supply Networks

Paying for the goods

Collecting the money. After all the work has been done to fulfil the order, comes the wait until the customer pays the account. But what if the customer does not pay? This is the situation for suppliers to a large metals processor in Australia – it has gone into voluntary administration with debts of $A70m. The challenge is that the … Read More

Your supply chain strategy needs a logistics plan

Roger OakdenLogistics Management, Procurement, Supply Chains & Supply Networks

Strategies provide growth

Logistics plan elements. To develop your supply chain strategy, three strategic plans are required; one each for Procurement, Conversion and Logistics. Using the business model from my previous blog the Logistics strategic plan can be considered within five elements shown in the diagram: Customer service – the appropriate level of service for customers, by product group or segment, considering: order fulfilment … Read More