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Cost to Serve Analysis—And the Costs of Neglecting It

Logistics Bureau

Have you conducted a cost-to-serve (CTS) analysis for your enterprise? And that is the sole purpose of cost-to-serve analysis. If you were going to say, “What is a cost-to-serve analysis?” Only a complete cost-to-serve analysis will expose these underlying issues unless they happen to be discovered incidentally.

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Inventory Management in Service Logistics Industry

Talking Logistics

What is Inventory Management? For Manufacturing it’s about carrying zero or minimum inventory. For Logistics the focus is on high inventory turns. For Logistics the focus is on high inventory turns. Inventory Management is about having a right balance of expectations from different functions of the supply chain.

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Mars Wrigley’s Highly Successful Supply Chain Digital Transformation

Logistics Viewpoints

The algorithms generate recommendations on optimal ways to rebalance inventory based on cost and service level impacts. The root cause analysis skill was developed to identify reasons for customer service level cuts and revenue losses. The analysis was not all that accurate.

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Know Your Supply Chain KPIs – Procurement

Logistics Bureau

For example, you might use simple observation to identify visible defects at goods-in, or you could make your analysis a bit deeper by testing a percentage of items received from the supplier. In procurement, cost analysis is not just about the price of your company’s purchases. Cost per Purchase Order and Cost per Invoice.

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Better Inventory Management Requires International Suppliers To Step Up to Digital Transformation and Collaboration

Logistics Viewpoints

While consumers may see some short-term benefit in the form of discounted goods, many retailers have had to reset investor expectations , reflecting the expected hit on margins from carrying so much inventory. Inventory management is challenging enough in normal times. So, what is it going to take to enable better inventory management?

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8 Reasons Why Your Business’ Success Depends Upon Your Supply Chain

Logistics Bureau

Pioneered the use of vendor-managed inventory. Implemented cross-docking in its supply network to enable inventory reductions. If your supply chain network design has not been under the microscope, and you care about business success, it’s probably time to consider the benefits of a design review and optimisation exercise.

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The Power of Outsourcing for Supply Chain Improvement

Logistics Bureau

Through collaboration with your procurement partner, you can reduce inventory levels and then potentially downsize your warehouse capacity needs. For instance, automated order processing can reduce order processing time, while predictive analytics can help forecast demand more accurately, reducing the risk of stock-outs or excess inventory.