3 ways to optimize your supply chain to increase quality and reduce risk – Optimize to improve your bottom line and the

Inventory plays a major part in the efficiency of the supply chain as adequate stocks must be on hand when required for the smooth functioning of the supply chain. An Inventory Management solution aims at Inventory Optimization to meet not only the current demand but even future forecasted demand by using techniques of demand optimization. These solutions also track inventory at different stages of the supply chain to monitor that the right quantity is available to meet forecasted demand by deploying inventory analytics in real-time as can be done for petroleum terminal management. Organizations that invest in these smart automated solutions equip themselves to reduce unnecessary costs in relation to inventory such as stock-out situations and overstocking situations which result in costs for space and manpower whilst the loss of integrity of the organization and loss of opportunity are intangible costs.

Using strategic capacity planning is vital for maintaining a robust and efficient supply chain management (SCM) process. This is mostly centred around managing those complex orders in terms of resource utilization, inventory and stock requirements and balancing demand and supply as identified by the supply chain managers. When capacity planning is done with a strategic mindset taking a macro view and identifying any hitches for uninterrupted workflow and addressing them these managers can ensure the resilience of the supply chain process. A sound understanding of Demand Sensing and Demand Forecasting can support further efficiency of the supply chain by noting short-term trends to pick up customer demands better and faster to optimize inventory management to support it by delivering in a timely manner. There are many Artificial Intelligence-driven solutions available in the market for organizations such as McLarens Sri Lanka to find the best fit for their size and scale of operations.

Once the first two actions above are in place and processes are operating well, conduct sanitary checks to monitor their success. What worked well earlier may not be so after the changes were implemented. Is there a unique reason for the change? Stay updated on the innovations in Supply Chain Management and see what you can pick up, adopt (to optimize the SCM process), or scrap something. What have been the strengths in your SCM process and the weak points and how to reinforce the strengths? Similarly, find reasons for the weaknesses and take steps to address those weak points. These crucial checks can be done at least quarterly at the initial stages and reduced to twice a year once it is working well.