Having thousands and thousands of products and trying to maintain 100% availability throughout the assortment would make most of the suppliers bankrupt. At the same time, customers cannot afford to put their project on hold because certain items, materials or components are sold out. So what can the supply chain do to improve availability without exploiting costs?
FIND THE BALANCE BETWEEN THE RELIABILITY AND COSTS OF THE SUPPLY CHAIN
Ultimately, service levels are a direct translation of corporate strategy and inventory strategy. As such, companies determine the extent to which they can meet the needs of their customers based on stock capacity. For many organizations, this is about finding a balance between the strategic desire to improve stock availability and the need to meet current financial constraints.
IMPROVE STOCK AVAILABILITY WHERE MORE AMOUNT
For many companies, the criteria for establishing these service levels are not clear. As a result, many organizations rely on the inadequate levels of service that, at best, are determined based on a quick and vague analysis. For example, when the level of service hurts the safety stock or the stocks, we have to review and adjust quickly (again, without any real analysis).
Finding an optimal level of service allows companies to focus their investments and efforts, which in turn helps increase availability in the items that are most needed. However, for a service level strategy to be truly effective, it must take into account a large number of components, including billing, capacity, customer demand and cost.
Find out how you can offer your customers a more reliable service with our 5-step guide. Through these steps, you can increase levels of availability and customer satisfaction while reducing supply chain costs.
Download our guide and start optimizing your service levels today !!