Pipeline inventory consists of goods that a company has ordered but which have not yet arrived in the facility. Managing this type of inventory can help schedule production or shipments in advance, reduce standing inventory levels, and avoid stock-outs.
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Incoterms or International Commercial Terms are used to facilitate and standardize trade processes, especially logistics and shipping. As of today, there are 11 different Incoterms that all allocate different responsibilities to both parties of a transaction.
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Decoupling inventory is the strategic buffer stock of subassemblies and WIP that could be used when suppliers are unavailable, when there are internal disruptions like machinery breakdown, or when demand is greater than expected. It allows companies to prevent all-around stoppages and mitigate the bullwhip effect.
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In distributed manufacturing, production facilities are scattered throughout an extended geographical area, each one serving their local market, with their work coordinated with the help of cloud-based software. Distributed manufacturing is gradually gaining ground thanks to providing benefits such as shorter lead times and lower distribution costs.
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Batch records are documents that detail the journey of raw materials becoming batches of finished goods. Even though the term is mostly associated with process manufacturing, especially the pharma industry, every company that manufactures its products in batches or series can benefit from keeping batch records. Here is how to do it.
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Push systems and pull systems are supply chain management strategies that are used depending on the uncertainty of the demand for a product. While push and pull are very different approaches, many companies also adopt a hybrid push-pull strategy.
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Recent years have seen unprecedented disruption in the global economy. Large-scale events such as trade wars, tariffs, COVID-19, and port throughput issues have created massive pressure on the company’s supply chains.
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The bullwhip effect is a supply chain phenomenon related to sudden changes in demand signals, when a slight movement in demand can cause large swings throughout the supply chain. To avoid a destructive “whip crack” at the end, companies need to be prepared to mitigate the effect.
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Vendor-managed inventory is a supply chain management method wherein a supplier is responsible for replenishing the inventory of the buying company. This approach can lead to better inventory optimization, reduced costs, and stronger relationships between companies.
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Vendor management is a set of tools that companies use to ensure profitable and efficient relationships with their suppliers. Coming a long way from traditional phone calls, faxes, and emails, today even small businesses have started to utilize software to manage their communication with vendors.
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Inventory tracking means monitoring stock movements to increase visibility in the company’s supply chain. This added transparency helps businesses improve their ordering and overall inventory management practices, ensure traceability, and make sure that goods reach the production floor and the customer at the right time.
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The world has experienced historic supply chain disruptions during the last years. From trade wars and COVID-19 to semiconductor shortages and the Suez canal blockage – there are few industries that have not been affected. The lesson learned is to be better prepared and to remain flexible.
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