Strategic operational solutions
The key is to ensure that you have enabled tools to serve you best. First, you will need to configure the systems for effective output. By training the workforce on how to leverage these systems as tools, you can encourage a more independent and motivated workforce. Documenting standard processes further enables consistent excellence. In turn, consistency allows for high-level review and strategic decision-making.
Calculating optimal inventory levels
This phase reaches all the way from planning and sourcing to manufacturing, warehousing and sales. Steps may include developing preferred stock levels, reviewing product mix margin, or re-analyzing manufacturing lot or batch sizes to match sales.
Network optimization and logistics analysis
Reviewing the supply chain holistically creates an opportunity to identify the optimal distribution network and logistics strategy. This can be tailored to reduce cost, decrease lead time and best suit overall business strategy.
Reconfiguring a warehouse can be an essential inventory management decision. Strategic redesign increases awareness of inventory by creating visual cues for replenishment or slow-moving products. It may also reduce fulfillment time by improving stock accessibility and reduce quality concerns by facilitating FIFO (first-in, first-out) stock rotation.
Having a clear understanding of how these operational solutions can address red flags will keep your company tracking toward its growth objectives.