Network strategy and optimisation
How can I flow inventory through my network more efficiently?
Streamlining inventory involves working backwards from customer demand, analysing your supply chain to avoid choke points, maintaining a predictable flow, adapting to demand changes, and enhancing inventory visibility.
Key strategies include:
- Diversify supply chains to mitigate disruptions.
- Accurately forecast demand for informed inventory positioning.
- Understand and utilise the full range of inventory positioning options, including micro-warehousing and 3PL providers to meet evolving expectations.
- Implement technology for real-time inventory visibility.
- Position products based on demand and customer proximity.
- Conduct Value Stream Mapping to identify areas for improvement.
- Implement process improvements or automation where necessary.
How can I get visibility across my network and know it is optimised?
Consider a control tower approach, integrating an Order Management System (OMS), Warehouse Management System (WMS), and Transportation Management System (TMS) with AI. This provides end-to-end visibility and helps streamline operations. Optimised inventory placement can eliminate unnecessary sites, reduce handling costs and improve efficiency, resulting in cost savings and environmental benefits.
How do I identify the risk points in my network and then de-risk these?
Risk points often emerge from past disruptions. To de-risk, harness accurate and predictive inventory and demand planning, pinpoint choke points, build redundancy options, plan for supply chain shocks, and conduct network diagnostics. Strategies include:
- Understand SKU-level performance and adjust inventory strategies accordingly.
- Identify and strategise for potential choke points – ask “so what?”.
- Incorporate network redundancy to mitigate disruptions.
- Identify options and develop strategies for managing supply chain shocks.
- Perform network diagnostics to identify and address misalignments.
