Supply Chain Optimization is the process used to optimize, redesign, and improve supply chain models to increase efficiency, reduce costs, and deliver an enhanced experience to the customer. Modern supply chain optimization employs Artificial Intelligence (AI), and Internet of Things (IoT) along with traditional logistics to deliver real-time analytics which helps create a robust and responsive network.
Supply chain management and optimization are critical to a business to ensure sustainability, and to provide the best possible customer experience. A detailed and clear SCO plan enables business efficiency by ensuring end-to-end visibility via digital supply chain surveillance, route and inventory optimization leading to an overall reduction in lead times and increase inventory turnover.
There are three stages in the supply chain optimization process:
Supply Chain Design
Design sets the stage for the supply chain optimization. Network design processes like warehouse locations and how product flows between them are designed, distribution centers are mapped while trying to maintain cost-effectiveness.
Supply Chain Planning
Planning involves the formation of a strategic supply chain deployment plan, inventory planning, and demand forecasting. Predictive analysis by utilizing historical sales data helps with inventory optimization essentially balancing supply and demand. Demand forecasting can be used to blend past sales with upcoming promotional offers and manage supply accordingly.
Supply Chain Execution
Execution involves getting the product out of the warehouse, and into the customer’s hands. This phase focuses on execution-oriented applications; Warehouse Management System (WMS) to help control and manage daily warehouse operations, Transport Management Systems (TMS) to help optimize routes and for real-time tracking, and other applications to assist in decision making, and increasing end-to-end visibility.
Why Is Supply Chain Optimization Important?
Supply chains are complicated pathways, and any instance being compromised hogs down the whole supply chain. A well-designed supply chain ensures operational coherence and works to mitigate risks involved in the process.
Supply Chain Optimization – The Corporate Looking Glass’s Take
With over 04 years of experience, The Corporate Looking Glass doesn’t offer only consultation but becomes an integral part of the journey. At The Corporate Looking Glass, it is believed that one glove doesn’t fit all. Solutions tailored to specific needs are offered, and teams don’t just deliver reports but embed themselves within the operations.
The Corporate Looking Glass addresses the following core issues that are most common in supply chains:
Lack of End-to-End Visibility
Reduced end-to-end visibility can cause disruption in real-time operations, potentially delaying deliveries and leading to mismanagement of inventory. The Corporate Looking Glass incorporates WMS, TMS and IoT in a single visibility layer thus enhancing end-to-end visibility, reducing the risks of delays or inventory mismanagement. A single visibility layer also means planners and customer representatives can see the same status and historical trails.
Silos
Supply chains often underperform because data is siloed due to poor connectivity within the chain. This ultimately impacts on the business’s ability to meet the customer demands. A supply chain optimized through connected technology enhances end-to-end visibility ensuring optimal performance and is the best solution for informational silos.
Inventory Optimization Challenges
Overstocking ties up much needed capital whereas understocking causes missed sales and customer dissatisfaction. Utilizing predictive data analysis by blending past sales, promotional events, seasonal trends, and market demands, ensures inventory is always at the optimal level. This helps in reducing costs and investing capital in SKUs that are in demand.
Risk Management Gaps
Disruption of supplies, geopolitical tensions, and transportation bottlenecks can also cause operations to halt. It is essential to have a contingency plan to mitigate risk pertaining to such factors. Without a risk mitigation plan, recovery can be slow and lead to net losses. The Corporate Looking Glass assesses existing risk management framework and helps mitigate the gaps in risk management to reduce downtime in case of any disruption.
Poor Customer Experience
Inaccurate delivery dates, stockouts and delayed response times cause customer dissatisfaction and damage brand loyalty, thereby plummeting sales. By integrating predictive analysis with order management systems, accurate delivery estimates, and stock reports can be generated.
Future of SCO
Supply Chain Optimization is not a one-time process but a constant effort that keeps evolving with ongoing situations and product demands. With advancements in technology and increased consumer demands, businesses are changing the way they manage their supply chains.
These technologies continue to transform supply chain optimization:
Artificial Intelligence
AI continues to monitor inventories more accurately and helps in reducing waste. AI powered control towers which automate tasks and provide significant insights are the future of predictive analytics.
Internet of Things
Data from IoT sensors provides accurate data to improve monitoring of shipments and delivers precise location and status.
Management Systems
Management systems like WSM, TSM, and intelligent order management systems increase visibility across the supply chain, essentially improving demand forecasting and prediction.
Digital Twins
Digital Twins: the visual representation of complex creations and processes, enables tracking of objects through their entire lifecycle.
Get in touch today and we will help you redefine your logistics and distribution strategy.
Email: contact@tcorlg.com
Phone: 5404193663
Phone: 8262718315
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