Supply Chain Consolidation
It can be a complex transition when a company considers a supply chain consolidation.
The consolidation process will definitely impact customers, employees and of course, supply chain partners. The purpose of streamlining is not only to cut costs, but to improve supply chain productivity and avoid accumulating excess inventory.
There are certainly many key factors to consider adjusting – labor, logistics, technology, automation costs and customer service. Companies often forget that with these shifts, they must also adjust their approach to inventory management in order to achieve positive results.
During the supply chain consolidation, supply chain managers typically make trade-offs between their warehouse size, service ability and the efficiency of meeting their orders. Streamlining will depend upon high-information system efficiency and labor productivity.
Leveraging freight costs and weighing regional availability of products and components can help to offset the cost of building a newer, more efficient warehouse. The cost savings also give companies the ability to utilize lower inventory levels and service the same number of orders.
Distribution centers must become nimble, even though they have often grown in size. In essence, a supply chain consolidation will allow the company to eliminate days on hand, but they must find ways to create supply at a rate that meets marketplace demand.
There is another way to enhance supply chain efficiency, reduce overall costs and improve customer service – outsource to an external warehouse or inventory management company. Many businesses turn to inventory management companies or an im strategy to help them control costs.
AECI’s diverse contract warehousing and fulfillment services are carefully designed to reduce your operating costs. We take the time to learn your specific needs in order to offer versatile, customized solutions for your strategic warehousing and distribution challenges.
With proven success in warehouse services, our flexible contract arrangements, automated solutions, and “personal touch” have provided our clients with the comfort level of an in-house program without associated in-house costs. We believe every part of a company should be evaluated and carried out strategically. Contact us today to learn more about how we can help your business with supply chain consolidation.