Volatility in ocean freight rates. Volatility in freight rates is not new. The fall in container shipping rates continues a two year decline. As the current rates (especially Asia to Europe) are likely to be loss-making for shipping companies, something will give. Demand-supply in the market will regain balance and all will be right – but will it? Most major … Read More
Build your inventory plan for a profitable business
Setting inventory policy. A Supply Chain manager will view performance across three aspects at the inventory policy level: customer service levels by inventory category/class; inventory turnover rate and the resulting operating profit. If this is done, inventory will not have to be managed against a financial target established in the annual budget. Instead, the inventory plan will be based on … Read More
Inventory policy is built on the Inventory structure
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