Current Trends in the Supply Chain industry
The supply chain industry is one of the most important to the overall economy. Billions of dollars in investments go into this industry every year in an attempt to improve it. Companies able to improve their supply chain have a huge advantage over the competition. In years past, this was an area where many companies did not spend a lot of time or money. However, market conditions changed and now many companies have entire departments dedicated to improving supply chain efficiency.
One of the most important elements of a supply chain is the inventory management strategy of a company. Many companies struggle in this area for a variety of reasons. First of all, predicting sales and inventory needs is difficult. The good news is that there are a variety of software programs companies buy in order to help in this area. Having too much inventory leads to gross margin erosion. However, having too little inventory means that companies do not take full advantage of customer demand.
A lot of companies save money on fuel costs because oil prices are so low. Although the price of oil increased recently, the overall price is still very low compared to historical standards. Any company that wants to invest in its supply chain can use fuel savings to fund these advances. Smart companies need to continue to invest in their supply chain in order to drive future growth. If you are a company owner, investing in this area of your company is essential to increasing profits.