May 28, 2020
Stord’s platform allows you to track orders and inventory levels in real-time, so you can significantly reduce rates of product loss and misplacement. But what else can you do with that information? Use it to help make long-term improvements to your supply chain, reducing costs and improving flexibility. You can expect:
An ability to shift deftly with customer demand
COVID-19 has proved that while most supply chains have considered the impact of crises like hurricanes, they can’t react quickly enough to unpredictable disruptors. An optimized network means you have complete visibility over your distribution, and have set up fulfillment centers or forward-stocking locations to store the SKUs that nearby customers are buying. If demand spikes, additional inventory is already nearby. If demand for a different product you don’t commonly stock spikes, you can see what other locations have that inventory in excess, and adjust accordingly.
Power to shrink and grow with seasonality
Gearing up for peak season or cutting costs during low-demand weeks doesn’t need to strain your supply chain. Using the data housed in Stord’s platform, track which SKUs sell best in what region during what time of year. Leverage our flexible warehouse network to store inventory where and when you need it, without lengthy commitments and capacity constraints.
Transportation costs reduced to a minimum
The farther you have to send your inventory to get it to the end customer, the more you have to pay in transportation costs; storing your goods closer to that customer can dramatically reduce those costs. You may also need to re-evaluate how your goods are being transported over the road, through regular FTL or LTL shipments, or intermittent expedited shipments. Looking at the data will show you how you need to optimize your freight shipments in addition to your distribution network.
Redundant or exorbitant charges scrutinized and amended
Network inefficiencies can also be found in invoices. If contracts and invoices are not regularly being audited, you might be paying for unnecessary accessorial charges or rates that aren’t on par with the market. Missed trucking appointments or high trucking wait fees may be the status quo for your supply chain now, but auditing and optimization can easily slash these costs to time, money, and resources.
How do we achieve an optimized network?
Our data science team uses shipment and order data to run network optimization reports, lane shift analyses, pool distribution models and more to find redundant or missing facilities or transportation lanes. Our team of supply chain experts, who have decades of experience negotiating contracts and optimizing spend, looks at the same data and finds areas where you’re being billed inappropriately. With this information we can recommend where to make changes and our operations team can help implement them.