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The Working Capital System · four modules that build on each other
01Working Capital Designyour inventory strategy02Integration Accelerator™the ERP connection03Order Steering™ordering rules for your purchasing04Managed Operationsongoing operations
ToolWorking capital calculatoryour potential in numbersKnowledgeInsightshands-on knowledge on inventory and purchasingTechnologyEazyStockthe inventory-optimisation softwareTechnologyEazyERPthe middleware to your ERP
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Working Capital Designyour inventory strategyIntegration Accelerator™the ERP connectionOrder Steering™ordering rules for your purchasingManaged Operationsongoing operations
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Logistics vs. supply chain management: definition and differences.

The key points

  • Logistics is the operational flow of goods and information: transport, handling, storage.
  • Supply chain management steers the entire value chain, from your supplier's supplier to your customer's customer.
  • Logistics is thus part of SCM: SCM plans and coordinates, logistics executes.
  • More important for practice than the terms: anyone who wants to cut inventory has to start at the SCM level, not just in the warehouse.

What does logistics do?

Logistics ensures the right goods are in the right place at the right time in the right quantity. Classically that's transport, handling and storage, plus the accompanying information flow: delivery notes, stock bookings, shipment tracking. Its yardstick is operational excellence within a given frame.

What does supply chain management do?

SCM sets that frame. It plans and coordinates the value chain across company boundaries: procurement, production, distribution, from the upstream supplier to the end customer. At this level, the decisions are made that really determine stock and supply capability: which articles are stocked, with what targets, by what ordering rules, from which suppliers.

Where's the difference in practice?

The rule of thumb: logistics optimises the path of the goods, SCM decides what should be on the way at all. A perfectly organised warehouse full of wrong articles is a logistics success and an SCM failure. That's why the biggest inventory levers sit one level above the warehouse: in the forecast and in planning. How to start there is shown by the three steps of inventory optimisation.

If the warehouse is optimised but forecast and ordering rules stay unchanged, you're only shifting the problem. For inventory problems, first check the planning decisions, then the workflows in the warehouse.

Keep reading

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Never out of stock again: automatic demand forecasts in EazyStock.

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From slow movers to fast movers: why you shouldn't procure every article the same way.

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Inventory forecasting: forecasting with fluctuating demand.

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Inventory optimisation in 3 steps: forecast, optimisation, procurement.

Inventory & Purchasing

Inventory planning: the second step in inventory management.

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