STRIKE A BALANCE BETWEEN RELIABILITY AND SUPPLY CHAIN COSTS
Ultimately, service levels are a direct translation of a business’ corporate strategy to the inventory strategy. This is how companies determine to what extent they can satisfy your customer’s needs based on the stock capacity.
For many organizations, this about finding the balance between the strategic desire to improve stock availability and the need to satisfy the financial constraints in place!
IMPROVE STOCK AVAILABILITY WHERE IT MATTERS MOST
For many businesses in the building industry, the criteria for setting these service levels is unclear. As a consequence, many organizations rely on inappropriate service levels, which, at best, are placed based on only a quick and vague analysis. It is only when the service level hurts safety stock or out of stocks. For example, the service levels are reviewed and quickly adjusted (again, without any real analysis).
Finding an optimal service level allows businesses to focus their investment and efforts, which helps boost availability on the items where it is required most. However, for a service level strategy to be truly effective, a large number of components must take into account, including turnover, capacity, customer demand and cost.
DOWNLOAD OUR GUIDE AND OPTIMIZE YOUR SERVICE LEVELS TODAY
Discover how you can offer your customers a more reliable service with our 5-step-guide. Through following these steps, you can increase availability levels and boost customer satisfaction while demolishing supply chain costs!