Supply chains are always changing, and keeping them efficient means watching over every detail.
Even a small error, if unnoticed, can cause major headaches for the entire operation.
Taking time to assess and improve keeps things running as smoothly as possible.
Visit the full video below to learn more about what to watch for in your supply chain.
Today, we’re exploring five crucial supply chain fixes for 2023.
New Warehouses
The demand for new or updated warehouses has increased sharply. Organizations are expanding capacity and upgrading facilities to meet post-pandemic inventory needs. In Australia, Southeast Asia, North America, and beyond, companies are focused on adapting their warehouse setups to handle growing business demands.
Cost to Serve Analysis
Cost-to-serve analysis has become essential this year. Many organizations are performing these analyses to manage supply chain costs effectively. Traditional reporting methods often overlook details that cost-to-serve can highlight, helping companies uncover hidden expenses and optimize costs.
Inventory & S&OP
Inventory management and Sales and Operations Planning (S&OP) are other key areas of focus. Reducing excess stock and improving demand planning have become priorities as companies aim to free up capital. This shift brings benefits across the board, helping companies streamline operations.
Ocean Freight
With ocean freight costs rising and then stabilizing, businesses are focusing on freight efficiency. Optimizing container utilization, improving consolidation, and other strategies have become necessary as companies work to control freight expenses.
Outsourcing
Outsourcing has also become a major trend. Many companies are shifting from in-house warehousing to outsourced providers to reduce costs. This transition requires finding reliable partners, which can be challenging but essential to achieving efficiency.
These five areas—warehousing, cost analysis, inventory management, ocean freight, and outsourcing—are key for maintaining an efficient supply chain.
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“.
