FreightOptics Knowledge Center

Supply chain optimization is an intelligent and smart application of the different processes, techniques and tools that ensure the proper operation of manufacturing and distribution in a supply chain. Supply chain optimization includes the best placement of inventory within the supply chain and minimizes costs such as manufacturing, transportation and distribution expenses. Professional freight optimization involves the application of a mathematical modeling technique using software.

Supply chain optimization maximizes the profitable operation of a manufacturing and distribution supply chain. The optimization technique may use measures such as maximizing gross margin return on inventory invested (GMROII), minimizing total operating expenses, such as transportation, inventory and manufacturing, and maximizing gross profit of products distributed throughout the supply chain.

Professional freight optimization addresses the general supply chain problem of how to deliver to customers at a lower cost and higher profit. This includes trading off the cost of inventory, transportation, distribution and manufacturing. Performing professional freight optimization with precise product or package sizes is the easiest and most cost effective way to save money in product distribution.

Supply chain optimization consists of a series of steps that reduce costs during the production of goods. Supply chain optimization, nowadays, is met with new challenges and uses modern software and cloud computing to have a greater impact. It helps for expanding your business and making your supply chain strong. For a business to have a proper data collection process within the supply chain, many different software options can be used. The software will properly maintain the records of all the sales details which is useful for successful supply chain optimization.

There are many advantages to supply chain optimization. Freight optimization services and supply chain optimization are proven credible. Many organizations have benefitted as a result of the use of different supply chain models. Freight optimization services are also commercially effective. Many companies have published case studies to show how clients have achieved measurable results, such as reduced inventory and lower costs, through optimization.

Another supply chain optimization factor is direct plant shipment, wherein the product is delivered directly to the customer, thus decreasing transportation and storage costs. Direct shipment can be essential and quite effective.