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Inventory Velocity in Consumer Packaged Goods Environment


Living in a world of speed, immediate accessibility, and instant gratification, consumer packaged goods (CPG) manufacturers have to procure raw materials, build components, assemble finished goods and physically ship them across the world. Challenged with shorter lead times and exploding finished goods SKUs, selling goods and procuring materials globally increase pressure to do more with less.

Ultriva Content Featured on Supply Chain Brief Website

Supply Chain Brief

Supply Chain Brief, an aggregate website for supply chain content officially launched today, Thursday, August 14. The website is a combined effort with The Logistics and Supply Chain Management Society and The Logistics of Logistics blog. The creators have started a supply chain community to encourage sharing of best practices as well as provide a forum for thought leadership.

Demand Driven MRP Focus of Consumption-Based Replenishment Event

ddi logo

Last Tuesday, August 5, 2014 Chad Smith, a Supply Chain expert and co-founder of the Demand Driven Institute presented a webinar about consumption-based replenishment.

Smith argued that forecast error is on the rise and that supply chain complexity and volatility are increasing; he also noted that legacy planning tactics and tools are breaking down.  Co-hosted with Narayan Laksham, founder of Ultriva, Smith noted during the webinar, “Worldwide there are more complex planning and supply scenarios than ever – the past is NOT a predictor for the future.”

Omnichannel and Supply Chain Optimization

Shop omnichannel

Omnichannel has become the buzzword of the moment for retail supply chains. 

Recently, four hundred retail CEOs were surveyed by PwC, for a study commissioned by JDA Software. The survey is titled “Retail’s New Imperative: Supply Chain Optimization as a Growth Strategy.” The study revealed a large number of these retail CEOs reporting that their supply chains were not optimized to support the new omnichannel. 

Reducing Supply Chain Costs Starts With Supply Chain Visibility

supply chain visibility words

Everyone in the manufacturing industry wants to reduce inventory costs; easier said than done and there is no magic bullet. Simultaneously there is little appetite for inventory reduction solutions with a big price tag. The closest any manufacturer can get to the magic is supply chain visibility.

Eliminating Excess Warehouse Inventory Through Right Sizing Demand Driven Production

Warehouse Inventory

Warehouse’s inventory at an all-time high, choosing a location for storage is tougher than ever. Demand for space is causing prices to go up, and manufacturers want to make sure they are still getting top notch service, especially when expenditures are higher than previous levels.  DC Velocity reported U.S. warehousing costs spiked in 2013 as retailers, incented by low interest rates and inventory carrying

Adopting Cloud-Based Supply Chain Technology

cloud is the key

Recently, Supply Chain Brain (SCB) published, “A Forecast for the Cloud in Supply Chain and Logistics.” Tom Boike, VP of supplier management with UPS, offered his perspective regarding the impact of cloud technology on the supply chain and logistics industry. 

How to Manage 3PLs

Inventory for 3pl

Third party logistics providers (3PL) offer a variety of services, but the primary function of these organizations can be summarized as providing transportation, warehousing, and management of inventory for another company. Some companies handle inventory on consignment. Consignment stock is often defined as inventory owned by one party (in this case the “Supplier”), but held by another (the “3PL”). This risk rests with the first party, and do not get paid until the goods are sold (in this case the third player, the manufacturing “Company”). 

Global Manufacturing Report Highlights Supply Chain Visibility Challenges

lack of visibility

Recently, Forbes and KPMG International released a survey on manufacturing entitled ‘The 2014 Global Manufacturing Outlook: Performance in the Crosshairs.” The report is based on interviews with 460 senior manufacturing executives around the world. 

The report contained four key findings: 

  • Manufacturers plan to invest in enhancing processes which increase profits
  • Organizations will increase R&D spending, including outside collaborations and leveraging technology
  • Supply Chain visibility remains a challenge.
  • Manufacturers want to achieve a globally integrated supply chain and share real-time information with suppliers

Accessing Inventory Savings via Simulation


Manufacturing companies must uncover opportunities to reduce inventory to stay competitive. One way to reduce excess inventory (without the risk of stocking-out of important parts) is to determine an optimal replenishment cycle. This can be done by identifying which parts would benefit from an eKanban loop replenishment system.

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