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How does Weather Affect Supply Chain?

How does Weather Affect Supply Chain?

From what you wear to the activities you engage in, weather affects every facet of life. In fact, every year, about 30 percent of America’s GDP is impacted by weather. As you can see, the impact of weather on the supply chain and thus, the economy, is high. As a business owner, weather conditions are outside of your control. However, there are strategies and systems that you can implement in order to keep tabs on possible supply chain disruptions and implement tactics to address them. How does the weather impact the global supply chain? Let’s take a look…

What Happens When There Is Too Much Inventory On Hand?

What Happens When There Is Too Much Inventory On Hand?

Controlling inventory levels is critical for any business that sells goods to consumers. Inventory is the reason businesses exist and are able to make money. However, there can be a great deal of difficulty when it comes to managing inventory. Inventory costs money, therefore, if the inventory on hand is way more than customer demand, then there is a problem. Managing inventory is explained simply by having enough supply to meet the demand and perhaps a little bit more in order to keep up in periods when demand is high.

Managing the Supply Chain Bullwhip Effect

Managing the Supply Chain Bullwhip Effect

The Bullwhip effect is an industry term that you are bound to encounter in the supply chain business. Even if you have never heard the term before, you are likely to have seen its effects in practice. The bullwhip effect is easy to picture, and it hits the supply chain like a type of increasing chain reaction. Picture a bullwhip being struck forward or the increasing vibration on a plucked guitar string. For supply chain businesses, the bullwhip effect can have negative consequences that are felt in every department. Here’s how to recognize and combat the supply chain bullwhip effect.

How Does Transportation Affect the Price of Goods

How Does Transportation Affect the Price of Goods

Inflation has a lot to do with the cost of basic goods on the shelves. However, inflation isn’t the only factor that will affect the overall price of what consumers pay for their goods. Once you get past inflation, the second largest factor that affects consumer prices is transportation. Transportation is essential in the supply chain. Without transportation, goods aren’t going anywhere. When the price of transport goes up due to any factor, the cost of goods will naturally hike as a result of its effect on the supply chain. When warehouses and retailers pay more for goods transportation, consumers will pay more for their goods.

What Are The Major Supply Chain Issues?

What Are The Major Supply Chain Issues?

The supply chain plays a major and vital role in the global economy as it is the network between businesses and suppliers to produce and distribute products to end-users. The supply chain is made up of people, entities, resources, as well as information Supply chain issues can drastically affect how businesses and consumers operate around the world. While every business will always have some sort of supply chain challenge, the Covid-19 pandemic created a plethora of new supply chain issues. Let’s take a look at some of the major issues supply chain leaders are facing today!

What is Cross-Docking for Ecommerce?

What is Cross-Docking for Ecommerce?

In the supply chain model, goods from a manufacturer or producer are sent for storage from where the goods are delivered to resellers or the end-user. Cross-docking is a supply chain model where businesses remove the storage link. By removing this link, cross-docking allows for the manufacturers of goods to deliver products straight to the customer without having to go to a storage facility or warehouse first. This practice is beneficial cost and time-wise for both buyers and sellers.

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