25 Aug 2021

Procurement Outsourcing Vs. Insourcing

2021-08-27T09:42:27-04:00August 25th, 2021|Categories: Inventory Management, Risk Mitigation, Supply Chain Management|Tags: , , , , , |

Outsourcing the procurement of some materials (direct or indirect) is appealing since most manufacturers lack the capabilities or capacity to successfully capture the full value of total spend optimization. Procurement outsourcing providers employ many resources that client companies often lack in sufficient quantities such as procurement expertise, category knowledge, technology, and processes. Yet, while outsourcing procurement has its advantages it also poses some risks…

25 Apr 2021

Supply Chain and Logistics KPIs

2021-05-03T07:07:59-04:00April 25th, 2021|Categories: Inventory Management, Lead Time Reduction, Risk Mitigation, Supply Chain, Supply Chain Management|Tags: , , , , , , , , |

Key Performance Indicators (KPIs) are an efficient way to measure the overall health of an organization, project, team, or individual, When it comes to supply chain and logistics operations however, there’s often confusion over which metrics to use or even how many KPIs there should be. The truth is, there isn’t a standard number of KPIs that must be used. The specific measurements and number of metrics to utilize completely depend on your specific needs.

16 Mar 2020

Assessing Seasonal Demand

2020-04-15T22:26:44-04:00March 16th, 2020|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

Properly assessing demand variation is vital to inventory management success, starting with defining proper safety stock and inventory levels. However, before you can assess and item’s demand variation, you must determine whether it experiences seasonality.

30 Jan 2020

Safety-Stock for Supply Variation – Part 2

2020-04-15T08:02:05-04:00January 30th, 2020|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

To analyze supplier lead time, reference recent history to determine the typical number of days from order placement to receipt of goods. Remember, a day should be consistently defined the same whether conducting lead time analysis, demand analysis, or calculating kanban solutions. That is, if monthly demand is based on workday demand then...

30 Dec 2019

Safety-Stock for Supply Variation – Part 1

2020-04-28T09:40:12-04:00December 30th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

The proper management of inventory, typically calls for safety-stock to mitigate supply variation. Whether a supplier is an external company or an internal department, supply variation must be identified and properly addressed to prevent production downtime and minimize overstock. Supply-related safety-stock is abnormal. A reliable supplier should never require safety stock. After all, quantity, quality and lead-times should be accurate. Unfortunately, many inventory managers form the bad habit of seeing buffer inventory as a normal and necessary result of being adequately prepared...