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Supply chain optimization

by Income MARKETING Opportunities EZWORKSYSTEMS





Supply chain optimization

Supply chain optimization is the application of processes and tools to ensure the optimal operation of a manufacturing and distribution, Inventory within the supply chain, minimizing operating costs (including manufacturing costs, transportation costs, and distribution costs). This often involves the application of "Mathematical modeling"  techniques using computer software. read more →
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Optimization solutions are typically part, of or linked to, the company's replenishment systems distribution requirements planning, so that orders can be automatically generated to maintain the model stock profile. 

Financial Investment Computer Software
The algorithms used are similar to those used in making financial "Investment" decisions; the analogy is quite precise, as inventory can be considered to be an investment in prospective return on sales.

Supply chain optimization may include refinements at various stages of the "Product lifecycle (engineering)" product lifecycle, so that new, ongoing and obsolete items are optimized in different ways: and adaptations for different classes of products, for example seasonal merchandise. It should also factor in risks and unexpected constraints that often affect a global supply chain's efficiency, 

Including sudden spikes in fuel costs, material shortages, natural disasters such as hurricanes, and instability of global politics.
Whilst most software vendors are offering supply chain optimization as a packaged solution and integrated, in ERP software, some vendors are running the software on behalf of their clients as  "Application service provider" application service providers- read more →
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Manufacturing and Distribution 
 The supply chain with availability to the customer.
Minimizing total operating expenses (transportation, inventory, and manufacturing), or Maximizing gross profit of products distributed through the supply chain. 

 Delivering products to customers at the lowest total cost and highest profit.
Available to save money in product distribution-
Groups of customers), requiring modest database sizes and small amounts of manipulation.

 Unpredictability in demand is then managed by setting safety stock levels, so that for example a distributor might hold two weeks of supply of an article with steady demand but twice that amount for an article where the demand is more erratic.

By applying statistical trending and "best fit" techniques based on historic demand and predicted future events. The advantage of this approach is that it can be applied to data. 

Supply chain optimization has applications in all industries manufacturing and/or distributing goods, including retail, industrial products, and consumer packaged goods. (CPG)
Maximizing gross margin return on inventory invested.

Research articles, "White paper" white papers, academic advisors and industry reviews read more →
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-First, the techniques being applied to supply chain optimization are claimed to be academically credible. Most of the specialist companies have been created as a result of research projects in academic institutions or consulting firms: and they point to research articles, "White paper" white papers, academic advisors and industry reviews to support their credibility.

-Second, the techniques are claimed to be commercially effective. The companies publish "Case studies" that show how clients have achieved significant and measurable benefits in terms of reduced inventory and lower logistics cost levels, while typically maintaining or improving customer service through better predictability and improved availability. 

There is limited published data outside of these case studies, and a reluctance for some practitioners to publish details of their successes (which may be commercially sensitive), therefore hard evidence is difficult to come by. Last, not least, independent advisors or benchmarks show the stickiness and benefits achieved in specific sub-sectors.

-In conclusion, the different routines in supply chain optimization, have reached mature, status and allow companies to gain competitive advantage by increased effectiveness and measurable savings...

Financial Investment Computer Software read more →
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About Income MARKETING Opportunities Committed     EZWORKSYSTEMS

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Created on May 31st 2015 05:32. Viewed 331 times.

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