The Answer to Minimizing Risk and Running Out

May 11, 2022Articles

As you already know, the pandemic has caused a major supply chain disruption. This has caused major backlogs and shortages that not only affect the consumer but manufacturers as prices rise and products cannot be made and delivered. This Wall Street Journal video outlines how bringing production closer to home, a term called “regionalization”, is a smart long-term solution.  

According to Logistic Insider Inc., regionalization is “a beneficial way for supply chains to utilize their existing networks of manufacturers, by separating them into smaller sites. This will ultimately help organizations bring product home to their customers while differentiating the business and improving performance.” 

A few benefits of regionalization: 

  • An enhanced ability to ship more quickly and capture more orders
  • Eliminates the risk of oversees bottleneck
  • Keeps costs from rising
  • Avoiding outrageous expedited delivery bills

Supply Stream is an automatic replenishment service that significantly improves OTIF by addressing the problem of not being able to fill a high number of customer orders because the raw materials are not in stock or available.  Instead, the manufacturer focuses on filling the immediate work-in-process (WIP) orders where the inventory of materials is in stock.     

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