Managing your supply chain effectively has never been more important than it is now. Businesses must strike the right balance between raw material sourcing, sustainable inventory practices, and maintaining sufficient safety stock. Get it wrong, and you risk delays, increased costs, or even reputational damage. Get it right, and you create a resilient, efficient, and responsible supply chain.
At Accelerate, our consultants are experts in designing and managing supply chains effectively. Here are our top tips for success…
Raw materials: the foundation of your supply chain
Sourcing of raw materials to feed the supply chain can be a major challenge. Issues such as fluctuating prices, geopolitical instability, and supply shortages can all impact availability. To mitigate these risks, businesses could:
- Diversify suppliers to protect against over reliance
- Work closely with key, long-term suppliers to improve transparency and reliability
- Use data to heat map bill of materials to guide supply chain design & planning
By securing a stable supply of raw materials, businesses can prevent disruptions and maintain steady production.
Sustainable inventory: balancing efficiency and responsibility
Sustainability is no longer optional; it’s a business imperative. Companies that optimise their inventory for minimal waste, reduced environmental impact, and long-term efficiency will not only cut costs but also enhance their brand reputation. Some key strategies include:
- Lean inventory management: reducing excess stock while maintaining efficiency
- Circular supply chains: reusing materials where possible to minimise waste
- Eco-friendly storage and distribution: using warehouses, fuelling and transport routes & solutions that reduce carbon emissions and lower environmental impacts
By incorporating sustainability into inventory management, businesses can boost profitability while meeting regulatory and consumer expectations.
Safety stock: preparing for the unexpected
No supply chain is immune to disruption. Whether it’s a global crisis, supplier delays, or demand spikes, having a contingency plan is essential. Safety stock acts as a buffer to absorb unexpected changes, but it must be carefully managed to avoid excessive holding costs. Best practices include:
- Data driven forecasting: using material and product data and market trends to predict demand fluctuations & to shape key parameters at individual material level that define safety stock thresholds
- Just-in-time vs. just-in-case strategies: finding the right balance between minimising waste and ensuring security of supply to not lose out on revenue opportunities
- Raw material mapping: define key criteria per raw material in terms of proximity to site, on time in full performance over time, supplier performance and material lead time expected vs actuals to develop a supply chain contingency strategy which incorporates a balanced approach for alternative sourcing options vs strategic long term relationship development, for example
The right balance for a resilient supply chain
A successful supply chain strategy is about balance. Too much safety stock leads to waste and unnecessary costs. Too little can cause operational breakdowns. Failing to invest in sustainable practices risks long term damage. By focusing on smart raw material sourcing, sustainable inventory management, and optimised safety stock levels, businesses can build a supply chain that is agile, cost effective, and future-proof.
Need support in strengthening your supply chain strategy? Accelerate can help you optimise procurement, manage risk, and drive sustainability across your operations. Get in touch with our consultants today.