Mastering Supply Chain Resilience: 7 Strategies to Optimise Inventory

Optimising your inventory is essential for maintaining smooth operations and meeting customer demand. Understanding how supply chain disruptions can affect your business is the first step to developing a proactive strategy.

Key Challenges in Supply Chain and Inventory Management

Supplier Lead Times

Extended supplier lead times can disrupt your ability to provide the right stock at the right time. Common contributing factors include:

• Delays in placing orders.

• Inefficient supplier management.

• Port delays and lockdowns.

• Inaccurate forecasting.

Freight Prices

The global demand for imported goods has caused a surge in freight costs. Integrated freight management systems like RouteWise/TIG Freight can help find the best shipping rates while integrating directly into your MYOB ERP system.

Raw Material Shortages

The global shortage of raw materials has pushed businesses to:

• Look for alternative suppliers locally.

• Adjust demand planning strategies using advanced technology.

For Australia and New Zealand businesses reliant on air and sea freight, delays in manufacturing, port closures, and blank sailings further exacerbate stock-outs and extended buying cycles.

7 Steps to Manage Supply Chain Disruptions

1. Monitor Inventory Risk

Understanding supplier delivery reliability and forecast accuracy is critical. Measure and track these metrics to maintain appropriate inventory levels and reduce risks of stock-outs or overstocking.

2. Set Inventory Levels in Line with Risk

Once risks are identified, establish safety stock levels to buffer against uncertainties. Use sophisticated inventory management software like Netstock to automate this process.

3. Open Communication with Suppliers

Regular communication with your suppliers ensures you stay updated on lead times and order changes. Monitoring delivery performance also helps identify underperforming vendors, enabling better supplier management.

4. Encourage Team Collaboration

Accurate inventory management requires collaboration across teams. Inventory planners should work closely with sales and marketing to align inventory levels with future sales projections, market trends, and upcoming campaigns.

5. Classify Your Inventory

Classifying inventory into categories such as obsolete, non-stocked, and working stock simplifies reporting and reordering. Consider using a Warehouse Management System (WMS) like eveXso to streamline these processes and improve efficiency.

6. Focus on Forecast Accuracy

Accurate demand forecasting aligns inventory with demand fluctuations. Combining statistical models with market knowledge reduces inventory risks and ensures preparedness for market shifts.

7. Invest in Advanced Technology

Relying on manual processes, such as Excel spreadsheets, increases the likelihood of errors. Instead, leverage technology like Netstock for real-time visibility and supplier performance tracking. Complement this with:

• TIG Freight for cost-effective and customer-focused shipping solutions.

Achieve Warehouse Efficiency

Warehouse efficiency directly impacts customer satisfaction and profitability. Implementing strategies to minimise errors and maximise productivity will position your organisation for long-term success.

Demand Forecasting for Supply Chains

Demand forecasting is essential to anticipate and meet customer and market demands. By embracing advanced forecasting techniques, businesses can optimise inventory levels and ensure timely product availability.

Explore how demand forecasting can transform your inventory strategy. Gain insights into:

• Managing supply chain disruptions.

• Reducing errors and maximising operational efficiency.

• Staying ahead of market trends.

Take your first step toward a more resilient and agile supply chain.