What Is Supply Chain Optimization?

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The supply chain is like a complicated and confusing journey through the jungle. You want to get from point A to point B, but there are apparent and hidden obstacles. What if you could optimize your supply chain? What if you could make it easier and faster for your company to get things done? Well, that's precisely what supply chain optimization does: it allows you to optimize your supply chain so that everything flows more smoothly. Supply chain optimization enhances manufacturing or industrial supply chains using strategies and resources. Supply chain optimization uses various techniques and helps to improve how companies move items through the supply chain. The world of supply chain optimization is enormous, and getting lost in the weeds is easy. Don't worry! We're here to help you navigate the murky waters of supply chain optimization by giving you a crash course in the different optimization techniques out there. The first thing to know is that some supply chain optimization tools are largely predictive, while others may contemplate hypothetical scenarios. Supply chain network optimization is often described as an optimization based on analyzing hypothetical or "what-if" scenarios. Supply chain optimization is like a movie where the main character has amnesia and tries to discover who they are. You need to know what you're selling or how much. You must know what materials made those products and where those materials came from. You must be able to track back through every step of your supply chain: from the raw materials up through the manufacturing process and onto the shipping floor, packaging and distribution to the customer's door. Then, you need to be able to do it again with every single product in your inventory. This is where artificial intelligence comes in handy it can help you automate that process to become more efficient and more accessible for employees to use.

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