How to SAVE $$$ on BIGGEST Supply Chain Costs
Did you know supply chain operations represent around 70% of a company’s costs? What are some of the biggest logistics involved and how can you take steps to assure
that your supply chain is as cost efficient as possible?
1. Inventory Management Cost
Inventory can be a delicate dance. If you have too much product stocked, it can eat into cash flow that can be utilized somewhere else. If you stock too little, you can miss out on some serious business.
Many inventory issues can be difficult to identify based solely on historical data. Depending on Excel spreadsheets can get messy due to the sheer volume of data that needs to be tracked which can be time-consuming and can also lead to errors. This can seriously impact the accuracy of critical metrics for your business.
So what can we do about this? Research has shown that healthcare companies are making developments using predictive models to help with their supply chains. Simulations can offer new insights that help make data-driven decisions!
(To learn more about predictive modeling, contact firstname.lastname@example.org!)
2. Transportation Costs
Transportation costs can be a significant part of your spending. Due to the increased price of fuel, transportation costs can be upward of 50 PERCENT of your overall budget.
Sometimes it’s important to think not only about what you might be losing but think about what you could gain as well. Moving operations to the US, Mexico, etc., might make manufacturing costs a bit higher but it could be a decision that could ultimately help you save in the long run by cutting transportation costs and preventing some shipping delays.
3. Labor Shortages
The pandemic has contributed to increase product demand while also causing labor shortages due to layoffs and various other reasons. This can make it tough for companies to keep the supply chain flowing smoothly.
As a possible solution to this issue, this is a great time to evaluate your goods and possibly invest in technology that can help your company identify potential problems and get your products to consumers in the most efficient, economical way.
Contact Alpha Data Strategies today for help with technology that can help your business make data-driven decisions!