Case study - mitigating supply chain pain points

At Vintly, we meet clients across different industries, and even though business models and strategies may vary, the challenges to tackle are similar. In this article, we'll look at the top 3 most common areas for improvement related to supply chain management and how to tackle them.

Inventory Management

Challenge 

One of the most common challenges with inventory management is forecasting demand and dealing with seasonal changes, particularly when operating within retail. Companies need to be able to accurately anticipate future customer demand in order to buy and stock the right amount of products. However, due to the unpredictable nature of sales, as well as external factors affecting the lead times of production and logistics, it can be difficult to maintain the right stock levels. This may lead to supply issues, missed orders, and customer dissatisfaction.

Mitigation

Make sure you have the proper tools for managing forecasts and demand planning. The more SKU’s you are managing, the more complex it will get. There are pure forecasting tools available on the market that easily integrate with ERP’s, PLM’s, WMS’s, and Production management softwares, such as Vintly. 

Logistics & Transportation

‍Challenge 

Navigating logistics and transportation can be a major challenge. Forwarders and 3PL’s take pride in having the most complex charging structure, making it difficult to compare apples and apples. Despite this, it’s essential to select the right carrier and warehousing partner to keep operations cost efficient and in line with requirements. In addition, when shipping globally, dealing with customs is a priority - many companies have faced unnecessary fees and penalties related to insufficient control of duties.

Mitigation

Take the time to identify the best service and price options. It does not necessarily have to be the cheapest option that’s best for you. If you lack the resources and know-how, get in touch with us here. We help our clients reduce transportation costs on average by 5-15%, while at the same time providing a better control and overview of purchase orders and shipments.

Quality Control

Challenge 

Quality control is an unavoidable part of the manufacturing process, especially in the health & beauty, apparel, interior design, consumer electronics and construction sectors. It is not only the appearance of your product that is vital, calling for visual inspections, but also security, health and sustainability standards come into play here. Supply chain managers need to determine the best practices for product inspections and ensure that products comply with safety and other standards in the markets they sell to. 

Mitigation

In order to manage physical inspections on site, businesses usually entrust in third-party inspection houses. They can help with this process and provide proper documentation of the inspection. Furthermore, cosmetic and health products are usually labelled with batch numbers to provide traceability, should a recall be necessary. To learn more, check out this article by Intertek about supply chain strategies within the health and beauty industry.

Conclusion

By understanding common pain points and developing strategies to address them, supply chain managers can ensure smoother operations and improved efficiency for their business. Why not keep all these tasks and activities under one platform and collaborate with your suppliers? Vntly helps keep track of your planning, production, quality control and shipments. Book a demo here.