Traps of managing supply chain inventories

Published by riteshkapur on

What are the traps of managing supply chain inventories ?

Manufacturers have been concentrating on quality of incoming materials and outgoing products, but they havenโ€™t 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. ๐ƒ๐ž๐ฌ๐ข๐ ๐ง ๐Ÿ๐จ๐ซ ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ ๐œ๐ก๐š๐ข๐ง ๐ฆ๐š๐ง๐š๐ ๐ž๐ฆ๐ž๐ง๐ญ: Product and process designs should be evaluated not only on functionality and performance but also on the resulting costs and service implications.
2. ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ญ๐ข๐ง๐  ๐๐š๐ญ๐š๐›๐š๐ฌ๐ž๐ฌ: Effective operational control of supply chain requires centralized coordination of key data from different entities.
3.ย ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ญ๐ž ๐‚๐จ๐ง๐ญ๐ซ๐จ๐ฅ ๐š๐ง๐ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐’๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ: Take a System approach to production planning and inventory control decisions since one site affects the decisions at other sites.
4. ๐‘๐ž๐๐ž๐ฌ๐ข๐ ๐ง ๐Ž๐ซ๐ ๐š๐ง๐ข๐ฌ๐š๐ญ๐ข๐จ๐ง๐š๐ฅ ๐ˆ๐ง๐œ๐ž๐ง๐ญ๐ข๐ฏ๐ž๐ฌ: Most companies use incentive system focused on the division, group or site. These tend to inhibit cooperation.
5. ๐ˆ๐ง๐ฌ๐ญ๐ข๐ญ๐ฎ๐ญ๐ž ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ ๐œ๐ก๐š๐ข๐ง ๐ฉ๐ž๐ซ๐Ÿ๐จ๐ซ๐ฆ๐š๐ง๐œ๐ž ๐ฆ๐ž๐š๐ฌ๐ฎ๐ซ๐ž๐ฌ: Build measures across supply chain and total response time instead of individual sitesโ€™ lead times.