Author: Paige Winterberg

Shortages are the main causes of global supply chain disruptions amidst the ongoing COVID-19 pandemic, and they’re proving to be extremely pervasive. While ERP systems and other data categorization tools may help mitigate shortages to an extent, investing in planning or BI tools alone isn’t enough anymore. In the final installment of our shortage series, we move beyond the basics of shortages and the teams that manage them to illustrate why, in today’s economy, manufacturers need to look differently at shortage management.

Shortages are tricky, even one part can halt an entire production line. Successfully navigating shortages isn’t something one person on one team can tackle alone, they require a wide range of people to manage and eliminate them. Understanding the different roles that are directly involved in shortage management and the part they play is critical to preventing shortages in the future.

With bottlenecks in the supply of both goods and services running rampant post-pandemic, the term “shortages” is quite common to hear in the manufacturing industry. But what exactly are shortages and why are they such a big deal?

Most, if not all, manufacturers have at least one ERP system in place to house and categorize critical data. But investing and implementing ERP systems are just the first step towards achieving true inventory optimization. While ERP systems are necessary, on their own they lack the prioritization and visibility necessary for manufacturers to stay competitive and successful in today’s increasingly complex supply chain. To save both time and money, manufacturers must aim to operate as efficiently as possible. By implementing an additional analytics engine, ERPs can achieve their full potential.

While there are many frameworks for sustainability and business ethics, one framework has proven to stand the test of time—the pyramid of corporate social responsibility. This framework provides levels of responsibility that businesses can achieve as they grow and expand their sustainability practices.

Buyers spend their days determining the optimal levels of inventory that should be bought at any given time, but it’s not always a straightforward process. Without the right tools at their disposal, it can be incredibly tedious and time-consuming, often leaving buyers to rely on guesswork to guide their inventory actions. Beyond the ABC analysis, which helps categorize items depending on their value and importance, there is another process that is critical in maintaining optimal inventory levels—the XYZ analysis. The XYZ analysis provides an additional layer of statistical analysis that is essential to optimizing inventory levels to prevent as many shortages as possible while also minimizing the amount of inventory being carried.

At LeanDNA, highlighting our Leaniacs’ successes is one of our great honors. It is with great pleasure that we announce that Astrid Hussonois, Senior Customer Success Manager, has been named a 2021 Women in Supply Chain Award Winner. Anyone who has worked with Astrid can speak to how deserving she is of this award and we are so proud that she has received this industry honor.

Successfully managing inventory can be difficult. There are many moving parts, from determining the level of inventory that should be kept to maintaining the inventory levels necessary to avoid shortages and excess inventory. While there are many ways to count inventory, cycle counting is one of the most efficient methods to prevent inventory shortages and target discrepancies between reported versus actual inventory.