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Deep transformation with smart supply chain digitization - By David Simchi-Levi and Kris Timmermans
In just three years, a large global fashion retailer increased its market share by more than 28% and doubled its operating profit. What did the fashion retailer do to achieve, in such a short time, a twofold increase in operating profit while outperforming the growth of the fashion industry? Was it a new marketing and sales strategy? Or perhaps, a more efficient manufacturing technology? Hardly. Did it grow through acquisition? Not even close. By contrast, a responsive strategy focuses on speed, order fulfillment, service level and customer satisfaction. Here, the objective is clearly not to squeeze as much cost out of the supply chain as is humanly possible; rather the objective is to eliminate stock outs and satisfy demand by competing on response time and speed to market. Typically, in such a strategy, product variety is high and product lifecycle is short, manufacturing or product assembly is based on realized demand rather than forecast, products may be customized, buffer inventory of components is emphasized, and sourcing, supplier selection and the transportation strategies all rely on speed rather than only on low-cost.
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In a company’s inventory, nothing can hurt the bottom line more than over or understocking a product. Employing modern inventory management can help businesses maximize their profits and mitigate risks. But it’s not enough to track what’s in your warehouses and stores—you need to factor in your pipeline inventory, too. Maintaining an up-to-date view of your entire stock is crucial for efficient and effective inventory management. More accurate inventory counting will aid budget analysis, carrying costs, and sales forecasting. By tracking pipeline and decoupled inventories, businesses can guard against inventory loss and gain a competitive advantage.
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Narrowing Gap Between Ocean and Airfreight Rates as Supply Chain Pressures Mounts
Narrowing Gap Between Ocean and Airfreight Rates as Supply Chain Pressures Mounts
The difference between ocean and airfreight rates has narrowed to its lowest level since the hird quarter of 2022, highlighting the ongoing pressures within container supply chains, which have been exacerbated by various global disruptions. This development ought to bring a significant shift in the supply chain industry. Rotate recently highlighted that globally, ocean freight rates are now only six times lower than airfreight rates. This represents a marked change from historical norms, where airfreight rates are typically 12-15 times higher than those for ocean transport. A similar situation was witnessed back in 2022 when a combination of port congestion and container shortages led to a dramatic increase in ocean freight rates.
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The difference between ocean and airfreight rates has narrowed to its lowest level since the hird quarter of 2022, highlighting the ongoing pressures within container supply chains, which have been exacerbated by various global disruptions. This development ought to bring a significant shift in the supply chain industry. Rotate recently highlighted that globally, ocean freight rates are now only six times lower than airfreight rates. This represents a marked change from historical norms, where airfreight rates are typically 12-15 times higher than those for ocean transport. A similar situation was witnessed back in 2022 when a combination of port congestion and container shortages led to a dramatic increase in ocean freight rates.
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The role of business intelligence in supply chain management
The role of business intelligence in supply chain management
Effective supply chain management is essential for maintaining competitiveness and satisfying customer expectations. However, the sheer volume and complexity of data generated throughout the supply chain can present obstacles. This is where business intelligence (BI) emerges as a transformative solution.
Through BI tools and technologies, you can derive actionable insights, recognize patterns, and make informed decisions across the entire supply chain lifecycle. By understanding how BI can revolutionize your approach to supply chain management, you'll be better equipped to navigate today's complex business landscape and stay ahead of the competition.
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Periodic Inventory System: Is It the Right Choice?
Periodic Inventory System: Is It the Right Choice?
Periodic inventory is an accounting stock valuation practice that's performed at specified intervals. Businesses physically count their products at the end of the period and use the information to balance their general ledger. Companies then apply the balance to the beginning of the new period. Under a periodic review inventory system, the accounting practices are different than with a perpetual review system. To calculate the amount at the end of the year for periodic inventory, the company performs a physical count of stock. Organizations use estimates for mid-year markers, such as monthly and quarterly reports. Accountants do not update the general ledger account inventory when their company purchases goods to be resold. Instead, they debit the temporary account purchases. A temporary account begins each year with a zero balance. The accountant removes the balance to another account at the end of the year.
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Periodic inventory is an accounting stock valuation practice that's performed at specified intervals. Businesses physically count their products at the end of the period and use the information to balance their general ledger. Companies then apply the balance to the beginning of the new period. Under a periodic review inventory system, the accounting practices are different than with a perpetual review system. To calculate the amount at the end of the year for periodic inventory, the company performs a physical count of stock. Organizations use estimates for mid-year markers, such as monthly and quarterly reports. Accountants do not update the general ledger account inventory when their company purchases goods to be resold. Instead, they debit the temporary account purchases. A temporary account begins each year with a zero balance. The accountant removes the balance to another account at the end of the year.
read more
Narrowing Gap Between Ocean and Airfreight Rates as Supply Chain Pressures Mounts
Narrowing Gap Between Ocean and Airfreight Rates as Supply Chain Pressures Mounts
The difference between ocean and airfreight rates has narrowed to its lowest level since the hird quarter of 2022, highlighting the ongoing pressures within container supply chains, which have been exacerbated by various global disruptions. This development ought to bring a significant shift in the supply chain industry. Rotate recently highlighted that globally, ocean freight rates are now only six times lower than airfreight rates. This represents a marked change from historical norms, where airfreight rates are typically 12-15 times higher than those for ocean transport. A similar situation was witnessed back in 2022 when a combination of port congestion and container shortages led to a dramatic increase in ocean freight rates.
read more
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