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For retail brands, balancing effective inventory tracking with out-of-stock management is crucial for meeting customer demand while maintaining cash flow. Did you know that better managing your purchasing process can reduce the need for complex inventory management practices in the first place? 🌟 Discover how streamlined purchasing practices can simplify your inventory challenges and boost your bottom line. Read more: https://hubs.la/Q02B5VS60 #cashflowoptimization #retailinventorymanagement #inventorymanagement #purchasingprocess

Is it smarter to build category knowledge or rent it for a time? We’ve assessed the purchasing effectiveness of dozens of mid-sized manufacturers, and one common gap is Cost Management. Specifically, most are missing savings opportunities for some categories because they lack category knowledge within the purchasing team, Oftentimes, they are in good shape with the categories that make up 80% of spend, but they simply lack a firm grasp of cost drivers and the supply base for categories with small spend profiles. They don’t: 👎 Apply cost reduction tools 👎 Quote potential alternative suppliers 👎 Track supplier cost reduction performance 👎 Conduct an on-going cost reduction effort Strategically, it’s smart to focus cost savings efforts on the 80% of spend that will bring you the biggest gains. But ignoring other categories isn’t so smart. Sometimes it makes sense to 𝗯𝘂𝗶𝗹𝗱 category knowledge on your team to manage costs on these neglected categories. More often, it’s more cost effective to take a 𝗯𝘂𝘆 approach and tap into category experts for the missing knowledge for a time. Build or buy – either can be a smart choice, one or the other is probably better for you. Leaving cost savings opportunities untouched is not a smart choice (would that be an “unsmart” choice?). Here’s an example. A 150M valvetrain component supplier had a $3M domestic freight spend. They were unhappy with their 3PL, with both on-time delivery performance and the real-time information provided. They tapped a seasoned logistics expert with 20+ years experience working for 3PLs. The expert gathered the right routing information, talked to stakeholders, and interviewed 6 3PLs that could be a good fit. They ran an RFQ. The logistics expert interviewed the finalists’ clients to get the story behind the story. Narrowed it down to two great options. The client interviewed both, picked one, and implemented 8% savings ($220k/year). All within 14 weeks. Are you a manufacturing leader looking to quickly implement cost savings? DM me, and let's discuss your untapped opportunities. You could implement $200k - $500k in savings in as little as 14 weeks, with fees based on the savings achieved.

Are you being tasked to find ways to cut cost in your organization? Based on this recent article by Supply Chain Drive cutting costs is Procurement Executives top priority in 2024. ShipPlug can help you and your organization cut costs, reach out to me today to find out how! #Cutcost #Costcutting #Procurement #Logistics #Shipsmarter

Purchase to Pay process is very important for manufacturing companies to ensure procurement of right quality materials at cost-effective rates and in right time.   If P2P process is not well defined and standardized, it can result in lack of transparency, inventory issues like overstocking or understocking, cash flow issues, longer production cycles, delayed deliveries, poor customer satisfaction   To avoid this Procurement teams must follow Purchase to Pay (P2P) best practices.   Implementing Best practices will help streamline your procurement, improve supplier relations, save costs, increase procurement efficiency from Good to Great. This will lay the foundation for growth & success #purchase #procurement #purchasetopay #purchaseprocess #procurementprocess #manufacturing #manufacturingindustry #inventory #cashflow #production #delivery #supplierrelations #procurementefficiency #growth #success

Inventory : Key Management Techniques & Best Practices 📦📋✅ Inventory management is a central aspect of business success, ensuring that stock levels align with demand. Best management practices can boost cash flow, reduce costs, and alleviate stress. This post lists key techniques and best practices for mastering inventory management: 🗝️ Key Techniques: ⏱ Just-in-Time (JIT) Inventory: Minimizes carrying costs by ordering or producing goods only when needed, reducing storage costs and the risk of obsolete inventory. 🔠 ABC Analysis: Categorizes inventory into three groups based on value and importance (A, B, and C), allowing for focused management and optimized stock levels. ⚠ Safety Stock: Maintains a buffer of extra inventory to prevent stockouts and ensure business continuity. 📊 Economic Order Quantity (EOQ): Calculates the optimal order quantity to minimize total inventory costs. 🔀 Batch Tracking: Assigns unique identifiers to product batches for traceability and regulatory compliance. 🥇 Best Practices: ➕ Demand Forecasting: Predicts future inventory needs based on historical sales data and market trends. 🤝 Supplier Relationship Management: Builds strong relationships with suppliers for timely deliveries, effective communication, and favorable terms. ☑ Inventory Audits: Regularly checks stock levels and verifies records to ensure accuracy and prevent inventory shrinkage. 👩💻 Technology Adoption: Leverages technology for enhanced efficiency, real-time insights, and streamlined processes. 🏗 Warehouse Layout Optimization: Improves accessibility, reduces packing and delivery times, and enhances accuracy. 💠 Internal Company Culture: Develop a culture that supports inventory management through cross-functional collaboration and continuous improvement. 💸 Financial Considerations & Customized Financial Solutions: Accessing adequate working capital can be challenging. Customized solutions like invoice finance, trade finance, and business loans can provide the necessary funds. If your business adopts these techniques and best practices, you will be able to effectively manage your inventory, optimize your operations, and enhance your overall performance. #inventorymanagement #supplychainmanagement #logistics #workingcapital #JITinventory #ABCanalysis #safetystock #FinanceServices #BusinessFinanceServices #StartupFinanceServices #FractionalCFO #VirtualCFO #InterimCFO #CFOservices #VietnamCFO #CFOVietnam #CFOservicesVietnam #FrenchCFOVietnam

Embracing Supplier Consolidation in Supply Chain Management.  Discover how streamlining your vendor partnerships can drive cost savings, enhance collaboration, and fortify your supply chain against disruptions.  Follow OptimizeMRO to know more!! #supplychain #supplychainmanagement #supplierconsolidation #mroservices

Explore how Advanced Inventory Management Systems are reshaping the way businesses handle goods. Look into the details of IMS technology in this insightful piece. A must-read for modern enterprises. By: ADIL ABBASI - CMA 🔗 https://lnkd.in/dr4TBjeG

Purchase to Pay process is very important for manufacturing companies to ensure procurement of right quality materials at cost-effective rates and in right time.   If P2P process is not well defined and standardized, it can result in lack of transparency, inventory issues like overstocking or understocking, cash flow issues, longer production cycles, delayed deliveries, poor customer satisfaction   To avoid this Procurement teams must follow Purchase to Pay (P2P) best practices.   Implementing Best practices will help streamline your procurement, improve supplier relations, save costs, increase procurement efficiency from Good to Great. This will lay the foundation for growth & success #purchase #procurement #purchasetopay #purchaseprocess #procurementprocess #manufacturing #manufacturingindustry #inventory #cashflow #production #delivery #supplierrelations #procurementefficiency #growth #success

Looking to optimize your supply chain and logistics management? Look no further than Business Solutions Group (BSG). With our innovative supply chain advisory solutions, we not only reduce shipping costs by 15-40% but also mitigate significant indirect spending expenses in various business aspects.  Whether you need help with parcel or freight advisory services, managed logistics solutions, or demand and inventory planning, our end-to-end technology-based solutions ensure your supply chain network is streamlined and cost-effective.  Connect to the below link to setup a call with our experts.  You'll be glad you did.   #supplychainoptimization #supplychaincosts  

Selecting the right segment is the most important step if you need to implement purchasing savings quickly. Smart purchasing leaders focus on strategically managing the top 80% of spend. Categories that fall into the top 80% are assigned to buyers to manage strategically. These buyers then segment their categories and focus on the top 80% of spend within them. Effort is focused on selecting the right supplier partners and collaborating with them for long-term, mutual success.  This pays off with lower overall costs and better benefits to the company. Here’s the thing - If you want to implement purchasing savings in the next 3-4 months, you’re not going to find it in these strategically managed categories and sub-categories. The low hanging fruit for savings is the segments that are being neglected because buyers are focusing on the top 80%. We 𝙖𝙡𝙬𝙖𝙮𝙨 find $200k+ savings in segments with $2M to $20M in spend that aren’t being strategically managed. But one more thing needs to be in place to implement savings quickly. For savings this year, select segments that can be easily resourced (indirect categories are good candidates) 𝗼𝗿 segments where you have a lack of competitive suppliers (resins is a common one). Because items needing customer approval or lengthy supplier qualifications to resource will require lengthy implementation timelines. So the formula for selecting the right segment for implementing savings in 3-4 months is:      Segment is not strategically managed      AND with least $2M spend      AND (easy to resource OR no competitive suppliers) Follow this formula and you can achieve $200K+ savings within 3-4 months (assuming you run a good savings execution process). Are you a manufacturing leader looking to quickly implement cost savings? DM me, and let's discuss your untapped opportunities. You could implement $200k - $500k in savings in as little as 14 weeks, with fees based on the savings achieved.