By: David Thikoll, Supply Chain Industry Expert- SBS Group Desert Mountain
Effectively implementing lean principles in manufacturing facilities and inventory management best practices in wholesale distribution can have a significant impact on a company’s productivity level and profit margins.
Today’s global marketplace provides unlimited opportunities for business expansion. By streamlining inventory operations, organizations can allocate additional resources to finding ways to accelerate growth.
However, achieving efficiency goals requires specific tools and procedures.. Inventory management software has the power to decrease operational expenses, reduce costly over-stock and stock-out occurrences, improve production visibility and maximize resources resources.
Warehouse Distribution Effectiveness
Transforming a distribution supply chain from older push replenishment methods to the lean principles of pull replenishment, using innovative software solutions, amplifies the impact of company resources.
• A significant reduction in labor costs. Employee and administrative costs represent a large portion of the operational budget. Software can improve stock management by reducing the need to constantly re-balance inventory levels, and by increasing communication between locations.
• Shortening replenishment lead-times and reducing supply fluctuations with improved EDI.
• Developing stock indicators for continued monitoring and evaluation, and establishing appropriate safety stock levels for each product.
The resulting supply chain cost savings improve distribution performance, and provide the distributor with a competitive edge. To learn more about SBS Group’s Distribution solutions, contact SBS Group here or call 888.725.2555.