Anyone who has overseen a supply chain for any length of time knows that much more goes into proper supply chain logistics, organization, and management than simply determining an optimal economic order quantity.
While maintaining a balance between the costs of ordering and housing inventory is a critical component of any supply chain system, there are many other factors that can and should be taken into account. Just-in-time manufacturing, products that are temporarily available versus long-term offerings, the amount of cash typically on hand that can be used for reordering — the number of such considerations can seem endless.
And that only addresses the issue of inventory management. True supply chain optimization also involves things like customer service expectations, costs of manufacturing, fulfillment, and transportation.
How Inventory Data Analytics Can Help
The numerous factors that go into properly addressing any supply chain management system are precisely why every company should consider applying inventory data analytics to their approach. With so many moving parts, waste and inefficient processes are strong possibilities that can quickly eat into a company’s bottom line.
Using the power of big data to track things like inventory turnover, life cycles on warehouse and transportation equipment, and even utilizing the ever-increasing capabilities of …