What If You Could Increase Service Availability and Delivery By 100 Percent?

In the supply chain world, where incremental improvements of fractions of a percent are considered progress, it might seem unthinkable that a business’s service availability and on-time delivery could be perfected with a single optimization. Yet, these numbers are not an exaggeration.

When a company is willing to rethink the way it handles its supply chain inventory, performance increases of 100 percent aren’t just possible—they’re only the beginning.

Revolutionizing Inventory Management

Significant progress requires significant innovation. Traditional methods of vendor-managed inventory are time-tested and effective, but there’s a cap on how much value can be found from optimizing this inherently disadvantaged system. Instead, consider the benefits of new solutions such as Inventory On Demand (IOD): A new way of thinking about inventory management.

IOD involves transferring title and responsibility of inventory into the hands of a third-party provider. This provider takes ownership of goods and works one-on-one with each supplier to determine the optimal strategies for shipping, transportation, and warehousing. As inventory approaches its point of consumption, goods are routed to strategically-located distribution hubs where they’re held until a customer needs it. When this pull signal is activated, the inventory is sent to the buyer’s door. It’s like bringing the factory to right next door to the customer.

The Benefits of Inventory on Demand

Imagine your current supply chain infrastructure empowered by IOD. By time- and place-shifting inventory procurement, business owners gain numerous efficiency boosts that can send their performance and on-time service levels through the roof:

  • Continuous Service Availability: By leveraging strategically located distribution hubs, IOD providers can guarantee continuous service availability. With a store of inventory always on hand, customers never have to wait to receive orders, and companies eliminate the need for expedites.
  • Improved Quality Capacity:  One of the benefits of IOD is its system of actively managed inventory. By letting an IOD provider take agency over the flow of goods through the supply pipeline, supplier performance can be benchmarked, quality is improved, and inventory is better matched with consumption.
  • Supply Chain Visibility: IOD supports end-to-end supply chain visibility. By having a single point of contact manage inventory rather than a series of disconnected vendors, companies can monitor each supply chain process and gain insight into which areas can be improved.

IOD services represent a shift in the established protocols of traditional supply chain logistics. When companies work with third-parties who can actively manage and monitor their supply chain performance, companies receive substantial performance improvements that cannot be found elsewhere.

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