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How manufacturers and distributors can improve inventory management

SYSPRO Smarter ERP

As we have seen over the past 20 years, disruptions to supply chains have global impacts on all industries. On the supply side, constraints such as large manufacturing batch sizes and supplier delivery lead time force organisations to hold some raw materials or components in stock so that products can be delivered to customers.

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Cost Reduction in Supply Chains by Opportunity and by Design

Logistics Bureau

A survey of companies carried out by Deloitte Consulting LLP showed there was little connection between increased inventory levels and improved fill rates. Thus, the purchasing team may try to reduce unit prices, without thinking about batch sizes or delivery frequency, causing inventory levels to rise.