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They know that it can drive sales, profits, market share and capital expenditures with inventory.

Logistics Management And Supply Chain Management

Many retailers, wholesalers and manufacturers experience wide swings during economic changes. When the economy is strong, they focus on getting sales or orders out the door.

Then when the economy gets weak, they are unsure what to do. Often in the good times, sales could have been stronger; and in bad times, they did not have to soften as much as they did. One consistency with these firms is that supply chain management SCM is not a dominant factor in their strategy or operations in good times or bad times.

It is easy to identify firms that do not excel at supply chain management. In good times or bad times, they cannot tell you how well their supply chain operates beyond some anecdotal stories. Supply chain management is discussed in terms of freight cost. You can see the amount of dust collected on many products in their warehouses. They struggle to tell you how often their inventory turns; and if they can. They do not have an ABC breakdown of inventory or can distinguish turns for products that are domestically purchased versus those that are sourced offshore.

They have too much capital tied up inventory with low turns and, yet, have product stock outs and cannot meet all customer demand or fill timely, complete orders.

10 Supply Chain Management Best Practices for Retailers

Without a viable, strong supply chain, they repeat the same mistakes and yet expect different results. They have the supply chain they designed and deserve. Firms with supply chain excellence have that capability because they recognize that SCM drives sales, profits and market share. These retailers and wholesalers do not experience as significant down swings in sales and in profits during economic changes. Supply chain excellence does not shield them from the economic realities. However they do know and use SCM to drive increased sales, profits and market share.

This basically means that the supply chain is not static, and if the supply chain is not static then the distribution requirements are not static either and will change.

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Many problems in transportation supply chain can be addressed through the availability of analytics provided through a transportation management system. Needing such insights to allow companies to make smarter business decisions is especially true when supply chains become larger and begin operating on a larger scale. Recent advancements in technology also help promise a better integration between physical product movement and visibility. One good example is the surge of interconnected devices to connect pallets, trailers and containers systems in order to provide greater visibility.

Of course, proper implementation is essential in order for these great technologies to succeed.

Supply-chain management

Companies of all sizes must approach the transportation supply chain by implementing more harmonious systems in order to achieve greater visibility and a lower occurrence of supply chain errors. In the end this will result in lower total costs for the organization even beyond transportation costs. Well executed transportation management system always lead to the greatest supply chain visibility. When transportation systems feed into a predictive analytics scheme performance will be improved across the board.


In fact once the inventory is loaded into a channel it is the predictive analytics responsibility to plan for efficient transportation. Get the latest industry advice on logistics, transportation management, best practices, trends, tips and more! All rights reserved. To subscribe to our blog, enter your email address below and stay on top of things. We'll email you with a confirmation of your subscription. Learn More: Contact Cerasis. Share on facebook. Share on twitter. Share on linkedin.


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Supply Technologies: Your Global Partner in “Total Supply Chain Management”

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