Feb 22, 2023
In supply chains a sizable portion of supply chain terminology is inadequate. Good terminology should be as neutral and factual as possible, however this is far from the case in supply chain. We suggest changes to ABC analysis, service level, safety stock, seasonality, EOQ, BI and ERP, along with an explanation behind our proposed improvements.
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Feb 1, 2023
The Kanban method was initially implemented to improve manufacturing efficiency and reduce waste by providing a simple and visual material replenishment process so that every step of the production process would get just enough to operate smoothly without stockpiling raw materials or components.
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Jan 4, 2023
Every single SKU calls for mundane daily decisions, such as moving in more stock or changing the underlying price tag. Naturally, sticking to a fully manual process for those decisions is labor intensive and companies have been adopting varied software-based automation solutions.
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Dec 28, 2022
At the core, there are two fundamental problems that, almost without exception, lead to the undoing of supply chain optimization initiatives. First, a misguided thirst for control; second, bureaucracy taking precedence over reality.
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Dec 21, 2022
The service level represents the desired probability of not getting a stock-out. The more product you stock, the lower the chances of running out of stock, but also the higher the inventory cost. Deciding on the right service level for a certain product is essentially balancing inventory costs with the cost of a stock out.
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Nov 23, 2022
The supply chain triangle refers to the correlation between cost, cast and service in a supply chain. A business provides its customers with a certain type of service that requires both cash to produce and deliver and has a cost associated with it.
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Nov 9, 2022
Supply chain literature most often focuses on ordering policies where each separate item is treated in complete isolation to all the other items. the decision to order more units of item A is strictly independent from the decision to order more units of item B. In contrast, the prioritized ordering policy emphasizes multi-item decisions, where each item competes for capital allocation with all the other items.
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Oct 26, 2022
Micro fulfillment is a strategy used by retailers to improve the efficiency of the e-commerce order-fulfillment process. The objective is to stock the fast-moving SKUs in multiple small storage facilities situated close to the end customer.
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Oct 5, 2022
Odd pricing is a pricing method aimed at maximizing profit by making micro-adjustments in pricing structure, relying on the assumption that consumers are calculation-averse and will only read the first digits of a price.
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Aug 17, 2022
Co-packing is the process of packing products together to create a shelf-ready product for the retailer to sell.Services from specialized co-packing providers can be quite extensive, from designing the packaging (whether that be blister packs, shrink wrapping, liquid dispensing packaging, etc.), to laminating, folding flyers, printing and attaching labels or barcodes to products, dry/liquid filling, or kitting.
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Jul 20, 2022
The economic order quantity is essentially a trade-off between the ordering cost and inventory holding cost. If the company’s ordering costs or product demand increases, the order quantity increases. Similarly, if the holding cost increases, the order quantity decreases.
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Jun 22, 2022
KPIs stands for Key Performance Indicators and are extensively used in supply chain management to measure how a business is performing in a specific area to indicate how effectively the company is achieving its business targets.
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