Supply chains are complex entities. Even if you simplify your product range and your upstream suppliers, you still have to deal with the ramifications of diverse customers, their expectations…
Recent studies have shown that among the challenges frustrating warehouse and distribution centre managers this year, rising energy and labour costs…
The main reason businesses often overlook these issues is that fixing them feels too complicated. Addressing loss-making products and customers requires a cross-functional approach, which means it’s not just about improving one area of the business. It’s a holistic problem that spans procurement, inventory management, customer service, and forecasting. Take low-margin products, for example. Companies often resist eliminating unprofitable products because they’re concerned about disrupting their product range or losing sales…
Small orders are a hidden cost center. Most businesses have a mix of small, medium, and large orders, but the small ones are the real culprits when it comes to logistics inefficiency. They tend to cost more to process and deliver than larger orders, making them a prime area for cost reduction. By reviewing your order patterns, you can identify where smaller orders are unnecessarily inflating your logistics costs…
All Supply Chain and Logistics operations leak profits. It’s natural. But are you aware of it? Sadly, normal reporting systems don’t report very well at a customer and product profitability levels. They tend to report aggregate figures. And so these very common losses are ‘hidden’ within the data. It’s very common to have at least 10% of your customers orders as loss makers. And I’ve seen as high as 81%…
Cost to supply is a concept similar to cost to serve, but the focus shifts to your suppliers’ costs. It’s about understanding what your suppliers spend to deliver goods to you. This is just as important as knowing what it costs you to serve your customers. By grasping supplier costs, you can make smarter decisions, like whether it’s better for suppliers to deliver directly to your stores…
Your supply chain may be leaking profits without you realizing it. Based on extensive experience with companies ranging from $1 million to $30-40 billion in turnover, many businesses face issues with negative margins on customer orders…
Are you aiming to cut costs in your supply chain and logistics operations? Effective inventory management can play a crucial role in lowering logistics expenses. Many businesses overlook these essential inventory management techniques…
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? Many companies have never drilled down into the costs involved in selling specific SKU…
Trucks and vans are not cheap to run, so if you can save even a little on the cost of operating each vehicle in your fleet, those savings can mount up to a lot—and the more extensive your truck fleet…