Traps of managing supply chain inventories
What are the traps of managing supply chain inventories ?
Manufacturers have been concentrating on quality of incoming materials and outgoing products, but they havenโt been paying as much attention to the costs associated with transporting and storing them.
Some pointers from Lee & Billington are more valid today than ever.
Download below the list.
How do you overcome the specific traps while managing supply chain inventories ?
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1. ๐๐๐ฌ๐ข๐ ๐ง ๐๐จ๐ซ ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ ๐๐ก๐๐ข๐ง ๐ฆ๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ: Product and process designs should be evaluated not only on functionality and performance but also on the resulting costs and service implications.
2. ๐๐ง๐ญ๐๐ ๐ซ๐๐ญ๐ข๐ง๐ ๐๐๐ญ๐๐๐๐ฌ๐๐ฌ: Effective operational control of supply chain requires centralized coordination of key data from different entities.
3.ย ๐๐ง๐ญ๐๐ ๐ซ๐๐ญ๐ ๐๐จ๐ง๐ญ๐ซ๐จ๐ฅ ๐๐ง๐ ๐๐ฅ๐๐ง๐ง๐ข๐ง๐ ๐๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ: Take a System approach to production planning and inventory control decisions since one site affects the decisions at other sites.
4. ๐๐๐๐๐ฌ๐ข๐ ๐ง ๐๐ซ๐ ๐๐ง๐ข๐ฌ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐๐ง๐๐๐ง๐ญ๐ข๐ฏ๐๐ฌ: Most companies use incentive system focused on the division, group or site. These tend to inhibit cooperation.
5. ๐๐ง๐ฌ๐ญ๐ข๐ญ๐ฎ๐ญ๐ ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ ๐๐ก๐๐ข๐ง ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐๐ฌ: Build measures across supply chain and total response time instead of individual sitesโ lead times.