Supply Chain Secrets

Wishing you a great holiday season and a Happy New Year. Watch out for lots of new videos in 2026.
https://youtu.be/e69_4zvdogQ?si=MKeTXGmM4C5cxIOu

Seasonal Greeting and a Small Thank You Gift from Supply Chain Secrets Wishing you a great holiday season and a Happy New Year. Watch out for lots of new videos in 2026.You can check our Giving Progess Here: https://www.logistic...

📈 𝟓 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐄𝐧𝐬𝐮𝐫𝐞 𝐘𝐨𝐮𝐫 𝐊𝐏𝐈𝐬 𝐖𝐨𝐫𝐤 𝐟𝐨𝐫 𝐘𝐨𝐮 📈

Supply chain KPIs can be tricky. I’ve seen many businesses struggle with them, often making the same mistakes.

To help you avoid those pitfalls, here are five key tips to make sure your KPIs actually work for you. ⤵

📌 𝑶𝒖𝒕𝒄𝒐𝒎𝒆 𝑭𝒐𝒄𝒖𝒔𝒆𝒅

This might sound obvious, but many businesses get it wrong. Your KPIs should be directly tied to the outcomes you’re trying to achieve. If your goal is to reduce costs, focus on the activities that drive cost reduction. If you’re looking to improve picking accuracy, measure the factors that impact it. Stay focused on tracking progress toward specific goals instead of measuring just for the sake of it.

📌 𝑺𝒖𝒊𝒕 𝒕𝒉𝒆 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑳𝒆𝒗𝒆𝒍

Not all KPIs are relevant at every level. The CEO of a billion-dollar company doesn’t need detailed warehouse metrics like picking accuracy or cost per case. They need high-level KPIs like supply chain cost as a percentage of revenue or delivery performance. On the other hand, operational managers need KPIs specific to their function. Make sure KPIs match the level they’re being used at.

📌 𝑫𝒐𝒏'𝒕 𝑯𝒂𝒗𝒆 𝑻𝒐𝒐 𝑴𝒂𝒏𝒚 𝑲𝑷𝑰𝒔

I see this mistake all the time—businesses tracking too many KPIs. The key is to keep it simple. Three or four per function or level is usually enough. Think of it like driving: you keep an eye on a few key things like speed, fuel, and mirrors, not every single detail. The same applies to KPIs—track what truly matters.

📌 𝑺𝒆𝒕 𝑺𝒕𝒓𝒆𝒕𝒄𝒉 𝑻𝒂𝒓𝒈𝒆𝒕

Your KPI targets should challenge your team without being unrealistic. If your current picking rate is 40 items per hour, set a goal that pushes performance a little higher. Stretch targets encourage improvement, but they need to be achievable. A small challenge, along with some recognition or rewards, can go a long way in driving better results.

📌 𝑩𝒆𝒏𝒄𝒉𝒎𝒂𝒓𝒌 𝑰𝒇 𝒀𝒐𝒖 𝑪𝒂𝒏

Tracking your own trends is important, but without benchmarking, you won’t know how you compare to others. You might think you’re performing well, but how do you really know? Comparing your KPIs to similar businesses—whether informally or through benchmarking services—gives you a clearer picture of where you stand.

KPIs should work for you, not just be numbers on a report. Keep them focused, relevant, and limited to what truly matters. Stretch where you can, and if possible, benchmark to see how you stack up. Get these right, and your KPIs will actually help drive better performance instead of just adding to the noise. 📊

For a detailed explanation of this topic, you can watch it here ▶ https://www.supplychainsecrets.com/5-ways-to-ensure-your-kpis-work-for-you/

Do you have Inventory Management problems? 🕵

Many organisation still seem to - both large and small. 📊

Here's a simple Self Audit to check if you might have Inventory Management Problems 👉 https://inventorysurvey.scoreapp.com/

You can also watch this 🎥 https://youtu.be/zct3uvg0VQs?si=pphZy1CSp1L43kh4

3 Signs You Have Inventory Management Problems - Take the Test Do you have Inventory Management problems? Many organisation still seem to. Both large and small.Here's a simple *Self Audit* to check if you might have Inve...

✨ 𝟖 𝐁𝐞𝐬𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐓𝐢𝐩𝐬 𝐟𝐨𝐫 𝐘𝐨𝐮𝐫 𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 ✨

Providing excellent customer service in your supply chain isn’t just about meeting expectations—it’s about balancing service levels with cost efficiency. Many businesses either over-serve or under-serve their customers, leading to unnecessary costs or dissatisfied clients.

Here’s an 8-step process that helps ensure your customer service policy is aligned with both customer needs and business goals. 🔽

👉 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑬𝒙𝒑𝒆𝒄𝒕𝒂𝒕𝒊𝒐𝒏𝒔

Not all customers want or need the highest level of service. Some may prioritize speed and reliability, while others are fine with slower deliveries if it saves them money. To get this right, talk to key customers directly and conduct surveys to understand their needs.

👉 𝑨𝒍𝒊𝒈𝒏 𝒘𝒊𝒕𝒉 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑮𝒐𝒂𝒍𝒔

Your customer service policy should match your company’s overall strategy. Are you a cost leader, or do you compete on premium service? What do key stakeholders within your business believe service should look like? Understanding these factors ensures your service approach aligns with your company's direction.

👉 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑬𝒙𝒑𝒆𝒄𝒕𝒂𝒕𝒊𝒐𝒏𝒔

Once you know what your customers want and what your business aims to deliver, compare the two. They won’t always match perfectly. This is where segmentation comes in—offering different service levels to different customers based on their needs and profitability.

👉 𝑬𝒔𝒕𝒂𝒃𝒍𝒊𝒔𝒉 𝑪𝒐𝒔𝒕 𝒗𝒔. 𝑺𝒆𝒓𝒗𝒊𝒄𝒆 𝑰𝒎𝒑𝒂𝒄𝒕𝒔

Every level of service comes with a cost. You need to analyze what your business can afford to offer without eroding margins. This might include premium services at an extra charge, standard free service, or discounted services with longer delivery times.

👉 𝑫𝒆𝒗𝒆𝒍𝒐𝒑 𝑺𝒆𝒓𝒗𝒊𝒄𝒆 𝑷𝒐𝒍𝒊𝒄𝒚

A clear customer service policy sets expectations for things like order lead times, delivery costs, and minimum order quantities. Just like when ordering online, customers should know exactly what to expect and what fees apply.

👉 𝑪𝒐𝒎𝒎𝒖𝒏𝒊𝒄𝒂𝒕𝒆 𝒕𝒐 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓𝒔

Once your policy is defined, ensure it’s clearly communicated to customers. They should understand how and when they will receive orders, any additional costs, and any minimum purchase requirements.

👉 𝑪𝒐𝒎𝒎𝒖𝒏𝒊𝒄𝒂𝒕𝒆 𝒕𝒐 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔

Your internal teams—especially sales and customer service—must fully understand the policy. If not, miscommunication can lead to costly mistakes, such as sales staff overpromising services that the company can’t realistically deliver.

👉 𝑴𝒂𝒏𝒂𝒈𝒊𝒏𝒈 𝒕𝒉𝒆 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑺𝒆𝒓𝒗𝒊𝒄𝒆 𝑷𝒐𝒍𝒊𝒄𝒚

Simply having a policy isn’t enough—it must be enforced. If customers find loopholes, it can quickly spiral into unnecessary costs. Make sure policies are consistently applied and monitored.

✅ 𝐓𝐡𝐞 𝐅𝐀𝐂𝐓𝐒 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐟𝐨𝐫 𝐖𝐚𝐫𝐞𝐡𝐨𝐮𝐬𝐞 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭 ✅

In our interview with John Monck, a warehousing expert at Logistics Bureau | Supply Chain & Logistics Consultants, he shared valuable insights on how businesses can enhance warehouse performance. ✨

One of the key tools we use is the FACTS framework—Flow, Access, Capacity, Trace, and Safety—a simple yet powerful approach to optimizing warehouse operations. 🚀

📌 𝑭𝒍𝒐𝒘 refers to optimizing the movement of products through the warehouse to reduce unnecessary handling and costs.
📌 𝑨𝒄𝒄𝒆𝒔𝒔 is about ensuring picking areas are clear and easy to navigate.
📌 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 focuses on using the right storage systems to maximize efficiency.
📌 𝑻𝒓𝒂𝒄𝒆 emphasizes accurate inventory tracking.
📌 𝑺𝒂𝒇𝒆𝒕𝒚 underpins all operations.

Watch the full interview here for detailed insight on this topic
👉https://www.supplychainsecrets.com/how-to-boost-your-warehouse-performance-some-quick-tips/

If you're looking for a job in Supply Chain, or any industry, I think that networking is an essential activity. 🤝

One of the best places to network is your local Supply Chain/Logistics Association. 🌐

Watch this video for some tips 👉 https://youtu.be/_fr9hIn3Wxs?si=WkXqPl06NIOgI0Vx

Getting a Supply Chain Job - 4 Things to Think about If you're looking for a job in Supply Chain, or any industry, I think that networking is an essential activity. One of the best places to network is your lo...

𝐑𝐞𝐝𝐮𝐜𝐢𝐧𝐠 𝐖𝐚𝐫𝐞𝐡𝐨𝐮𝐬𝐞 𝐂𝐨𝐬𝐭𝐬 𝐰𝐢𝐭𝐡 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐒𝐥𝐨𝐭𝐭𝐢𝐧𝐠

Product slotting is an effective strategy to improve warehouse management and boost efficiency. 🚀

But how does it work, and what benefits can it bring to your operations? 🤔

Product slotting involves organizing items in a warehouse based on how often they are picked. Placing high-demand products in easy-to-access locations minimizes unnecessary movement and speeds up order fulfillment. 📋

▶ 𝑷𝒓𝒐𝒅𝒖𝒄𝒕 𝑺𝒍𝒐𝒕𝒕𝒊𝒏𝒈 𝑩𝒐𝒐𝒔𝒕𝒔 𝑾𝒂𝒓𝒆𝒉𝒐𝒖𝒔𝒆 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚

The goal of product slotting is to boost productivity by reducing pickers’ travel time. Placing fast-moving items closer to packing areas minimizes walking distance, speeding up retrieval and increasing daily order processing. Proper slotting can improve productivity by 10% to 30% and cut travel time by over 40%. Aligning stock layout with demand ensures more efficient workflows and higher throughput.

▶ 𝑻𝒉𝒆 𝑨, 𝑩, 𝒂𝒏𝒅 𝑪 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚: 𝑺𝒊𝒎𝒑𝒍𝒊𝒇𝒚𝒊𝒏𝒈 𝑺𝒍𝒐𝒕𝒕𝒊𝒏𝒈

This approach groups products by picking frequency: A items (high demand) are placed near packing areas, B items (moderate demand) are slightly farther, and C items (slow-moving) are furthest away. Larger warehouses might need to further subdivide A items to avoid congestion and optimize efficiency.

Managing slotting manually works for small warehouses, but larger operations need specialized software. Advanced tools handle complex layouts, optimize vertical storage, and adapt to changing demands. These solutions quickly calculate ideal placements, streamlining the entire process.

▶ 𝑹𝒆𝒄𝒐𝒈𝒏𝒊𝒛𝒊𝒏𝒈 𝑾𝒉𝒆𝒏 𝒀𝒐𝒖 𝑵𝒆𝒆𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕 𝑺𝒍𝒐𝒕𝒕𝒊𝒏𝒈

Signs you need slotting include inefficiencies like excessive walking, underutilized areas, or hard-to-reach items. A simple audit of product pick frequencies can highlight problem areas. Reorganizing with slotting can save both time and money while improving warehouse operations.

Product slotting is a simple way to make your warehouse more efficient and save money. By organizing inventory better, you reduce wasted time and keep things running smoothly. Whether your warehouse is big or small, slotting can help improve productivity and cut costs. 💰

For a detailed insight into this topic, check this out: https://www.supplychainsecrets.com/how-to-reduce-warehouse-costs-with-warehouse-product-slotting/

🛑 𝐇𝐨𝐰 𝐭𝐨 𝐒𝐓𝐎𝐏 𝐎𝐫𝐝𝐞𝐫 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐋𝐞𝐚𝐤𝐬 🛑

From my 30 years of consulting, I’d estimate that 10–30% of customer orders in most businesses are actually loss-making—and the surprising part is that many businesses don’t even realise it. Their reporting systems just don’t provide the right level of visibility. 🕵

This is a huge missed opportunity because addressing these leaks can unlock significant savings and improve overall profitability. 📈

𝑾𝒉𝒚 𝑫𝒐 𝑪𝒐𝒎𝒑𝒂𝒏𝒊𝒆𝒔 𝑶𝒗𝒆𝒓𝒍𝒐𝒐𝒌 𝑻𝒉𝒊𝒔 𝑰𝒔𝒔𝒖𝒆? 🤔

The problem often gets shelved because it feels too difficult to fix. Addressing loss-making products or customers requires cross-functional collaboration, and that’s where things start to fall apart. Solving these issues requires leadership at the very top—typically the CEO or Managing Director—because these problems cut across multiple departments, from procurement to customer service.

𝑾𝒉𝒂𝒕 𝑫𝒐𝒆𝒔 𝑰𝒕 𝑻𝒂𝒌𝒆 𝒕𝒐 𝑭𝒊𝒙 𝑻𝒉𝒆𝒔𝒆 𝑷𝒓𝒐𝒃𝒍𝒆𝒎𝒔? 🧐

Some businesses are willing to take the hard road and address these issues head-on. Recently, I’ve worked with clients who are redesigning their distribution networks, adjusting inventory placement, and improving supplier reliability to eliminate the root causes of loss-making orders. These efforts often lead to a 10–15% reduction in logistics costs—proof that the results are worth the effort. 🚀

For detailed information on this topic, visit this link
▶ https://www.supplychainsecrets.com/how-to-stop-order-profitability-leaks-logistics-costs/

7 Things You MUST look for in a 3PL. 🧐

Selecting a 3PL can be hard. They can all seem to present such great services. ✨

But here are 7 things to look for when selecting a 3PL (Third Party Logistics) partner 👉 https://youtu.be/5aHB8yZaliA?si=JbQUmmJgWEmoLo9k

3PL Essentials - Third Party Logistics - 7 Things to LOOK For 7 Things You MUST look for in a 3PL. Selecting a 3PL can be hard. They can all seem to present such great services. But here are 7 things to look for when s...

🚫 𝟑 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬 𝐎𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐌𝐢𝐬𝐭𝐚𝐤𝐞𝐬 𝐘𝐨𝐮 𝐃𝐨𝐧’𝐭 𝐖𝐚𝐧𝐭 𝐭𝐨 𝐌𝐚𝐤𝐞 🚫

I talk about logistics outsourcing a lot because I've seen many companies make expensive mistakes along the way. Mistakes can happen at any point, whether it's with the customers or the logistics providers. 🚚

Below are the most common errors I see companies make when outsourcing logistics, specifically from the perspective of the customer. 👇

📌 𝑰𝒏𝒂𝒄𝒄𝒖𝒓𝒂𝒕𝒆 𝒐𝒓 𝑰𝒏𝒔𝒖𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕 𝑫𝒂𝒕𝒂

One of the biggest mistakes when asking a 3PL for a quote is not giving enough detailed information. This can result in an incorrect solution and higher costs. If you're outsourcing warehousing, it's important to provide accurate details about your products, like their weights, sizes, packaging, and how they are handled.

📌 𝑼𝒏𝒅𝒆𝒓𝒆𝒔𝒕𝒊𝒎𝒂𝒕𝒊𝒏𝒈 𝑻𝒊𝒎𝒆𝒇𝒓𝒂𝒎𝒆𝒔

Many companies tend to underestimate how long a logistics outsourcing project will take. They expect it to be done in just a few months, but the reality is that it often takes much longer. The process—collecting data, preparing RFPs, contacting 3PLs, reviewing responses, and negotiating terms—takes time. A simple project might take six months, and if you're setting up or relocating to a new facility, it could take a year or more.

📌 𝑨𝒑𝒑𝒓𝒐𝒂𝒄𝒉𝒊𝒏𝒈 𝒕𝒉𝒆 𝑾𝒓𝒐𝒏𝒈 𝑷𝒓𝒐𝒗𝒊𝒅𝒆𝒓𝒔

The third mistake is approaching the wrong logistics providers. It’s easy to get overwhelmed and reach out to too many 3PLs, but this can waste time and energy. Focus on a select group of providers—four to six at most. Make sure they have the expertise that fits your specific requirements.

By avoiding these three mistakes—poor data, unrealistic timelines, and the wrong provider selection—you’ll ensure a smoother logistics outsourcing experience. ✨