In our recent webinar, “Inside the Buyer’s Journey: Aligning Supply Chain Strategies,” Blue Ridge delved deep into the core elements that drive effective supply chain planning, focusing on the strategic tools and methodologies that empower companies to navigate challenges with precision and confidence. Hosted by Kyle Cooper, Education Consultant at Blue Ridge, with guest insights from Thelma Chavez, Director of Operations at Controlled Holdings, the discussion revolved around a few of the 7 essential elements, showcasing how these practices can transform supply chain operations.
Order Cycle Optimization: Maximizing Cost Savings
Kyle kicked off the discussion by exploring the importance of order cycle optimization—a crucial element that ensures companies are ordering products at the right intervals to maximize cost savings. By leveraging Blue Ridge’s software, businesses can determine the optimal frequency for placing orders, considering factors like inventory levels, demand forecasts, and supplier schedules.
The idea here is simple yet powerful: by optimizing your order cycles, you can significantly reduce unnecessary expenses and free up capital. This principle is fundamental to maintaining a lean, cost-effective supply chain, and when applied correctly, it helps companies stay agile and responsive to market changes.
Special Orders: A Strategic Approach to Opportunities
One of the highlights of the webinar was the discussion on special orders—a topic Thelma Chavez is particularly passionate about. Thelma shared her experience at Controlled Holdings, where they have successfully integrated this element into their operations. She emphasized that while special orders can present opportunities for savings through supplier discounts and promotions, they can also become burdensome if not strategically managed.
The key takeaway here is that gut reactions to special deals can lead to overstocking and tied-up cash flow. Instead, Thelma explained how Blue Ridge’s forward-buying engine allows her team to input specific deal parameters and run simulations to determine the true value of a special order. This data-driven approach ensures that they only take advantage of deals that genuinely benefit their bottom line, avoiding unnecessary inventory build-up.
Kyle added that this capability also helps buyers shift from reactionary decisions to strategic thinking, ultimately improving their critical thinking skills and enhancing overall decision-making processes. This ability to critically analyze deals and make informed choices is what sets high-performing supply chains apart.
Order Validation: Ensuring Strategic Alignment
The discussion then moved to order validation, another vital element in maintaining a strategic supply chain. Kyle highlighted that while the first six elements of supply chain management build a robust strategy, order validation ensures that this strategy remains intact despite external pressures.
One common challenge companies face is when suppliers or internal teams request changes to ordering patterns that conflict with the established strategy. Kyle explained that Blue Ridge’s system provides analysis tools that help justify the strategic decisions made—such as ordering every 13 days instead of 14—by demonstrating the cost savings and efficiency gains. This not only helps in maintaining consistency but also facilitates better collaboration with suppliers and internal stakeholders.
Exception management was also discussed as a critical aspect of freeing up buyers’ time to focus on more impactful tasks. By automating routine processes and flagging only the exceptions—such as trending products or significant changes in demand—buyers can dedicate their time to analyzing and responding to these exceptions rather than being bogged down by day-to-day operational tasks.
Thelma shared how this has been a game-changer for Controlled Holdings. With over 7,000 SKUs, the ability to hone in on the products that require attention has not only saved time but has also led to smarter, more strategic purchasing decisions. As a result, the company has seen a significant reduction in stockouts, even while reducing overall inventory levels.
Real-World Results | Controlled Holdings’ Success Story
The webinar wrapped up with Thelma sharing the tangible results Controlled Holdings has achieved since implementing Blue Ridge’s solutions. In just six months, they improved their fill rates from 80% to 95%, reduced inventory by over $3 million, and cut stockouts in half. These impressive outcomes underscore the effectiveness of applying a strategic approach to supply chain management.
Kyle pointed out that reducing inventory while simultaneously improving fill rates is the hallmark of a well-optimized supply chain. It’s easy to reduce inventory by simply buying less, but doing so without compromising service levels requires a sophisticated strategy—and that’s exactly what Blue Ridge enables.
Be Supply Chain Invincible
Blue Ridge’s tagline, “Be Supply Chain Invincible” is about more than just managing supply chain issues—it’s about thriving despite them. Supply chain disruptions are inevitable, but with the right tools and strategies, businesses can not only withstand these challenges but also emerge stronger.
Blue Ridge’s approach equips companies to handle the unpredictable nature of supply chains, ensuring that when disruptions occur, they can continue to operate smoothly, maintain service levels, and protect their profits. By implementing the principles discussed in the webinar—order cycle optimization, strategic special orders, and order validation —businesses can achieve a level of resilience that truly makes them invincible.
To learn more, you can watch the webinar using this link: https://blueridgeglobal.com/2024-webinar-series-part-2/ Stay tuned for more insights in our upcoming webinars, where we continue to empower businesses to “Be Supply Chain Invincible.”
