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…

2 Mar 2021

Cost Multiplier Effect of Lead Time

2021-03-09T21:15:40-04:00March 2nd, 2021|Categories: Risk Mitigation, Supply Chain|Tags: , , , |

Lead time has a significant impact on inventory level. Thus, reducing lead time should be top of mind for manufacturers looking to better control their parts inventory. Long lead times tie up cash in huge inventories. This is cash that could be better used elsewhere in the business such as generating more sales or improving competitiveness.