Supply chains don’t fail all at once—they erode, decision by decision.
Bad data. Overpriced freight. Warehouses full of inventory in all the wrong places. Most supply chain problems aren’t “acts of God”—they’re acts of bad planning.
Last week, Kai Althoff broke it down in Supply Chain Digital. His key point? Resilience isn’t about reacting to problems—it’s about designing a supply chain that doesn’t break in the first place. Worth the read ??
? 84% of companies faced major supply chain disruptions in 2024, and nearly half paid for it in lost profitability.
? Geopolitical instability isn’t an exception—it’s the rule. If your strategy depends on “things calming down,” I’ve got a bridge to sell you.
? Fixed infrastructure is a liability. Demand shifts. Costs fluctuate. If your supply chain can’t flex, you’re spending more time cleaning up problems than preventing them.
The companies that win aren’t just surviving disruption—they’re structuring their supply chains to absorb it.
That starts with fixing three key areas:
1. Bad Data = Bad Decisions
You wouldn’t let your accountant “round up” your revenue by 30%, but that’s exactly what’s happening in most item master databases. Studies show that over 30% of product data in ERP systems is inaccurate, leading to SKU mismanagement, inflated freight costs, and inventory placement mistakes.
John Moore and the team at IQpack & packchain have built a system that takes item master data from messy to meticulous. Their platform cleans, validates, and enhances SKUs, freight classifications, and packaging data—eliminating costly errors before they ever impact operations. When item master data is right, everything else—pricing, shipping, forecasting—falls into place. AI is only as good as the data you feed it.
2. Poor Packaging Is Making Freight Carriers Richer—Not You
One of our customers saw a 35%-45% spike in adjustment billing on their FedEx invoice—not because they shipped more, but because their packaging was inefficient, triggering higher DIM divisor weight charges. Translation? They were paying top dollar to ship empty space.
The wrong box size can quietly eat away at your margin, one shipment at a time.
If you’re not optimizing packaging, your “free shipping” promo becomes a liability.
3. Static Inventory Placement = Burning Cash
Supply chains that assume inventory stays put are getting eaten alive by transit costs. The smartest companies are repositioning inventory dynamically, leveraging a distributed network to flex with demand instead of chasing it.
A network-driven approach to inventory placement means:
? Less dead inventory sitting in the wrong places
? Lower freight costs by reducing unnecessary long-haul shipments
? Faster fulfillment without premium shipping fees
What’s another overlooked supply chain issue that I’m missing?
#4pl #3pl #warehousing #supplychain #inventory #fulfillment #kinimatic