RAW MATERIAL PRODUCTION

Collective Supplies, LLCs raw material production operational strategy is to scale back fixed costs and specialize in flexibility with variable based costs. Supporting this, we found the most straightforward strategy was to figure with 3rd party logistics providers to mitigate the capacity gaps during a variable based manner. This process has proven to be preferable over-investing in expanding capacity at warehouses already in use for all three scenarios of optimistic, baseline, and pessimistic demand profiles. The most critical factor in realizing warehouse capacity is to enhance inventory policies and, therefore, the flow of
Communication. Our inventory policies aim to scale back inventory in an organized manner, moving from a "months available approach" to a scientifically calculated inventory that then transitions into multi-echelon inventory optimization. This system provides for inventory and risk reduction. Subsequent are ways in which implement processes to manage, reduce inventory and risks.

Track forecast error to know the variation of demand, time interval reduction of raw materials and add progress re-order point frequency increases reduction of demand variability through better communication of demand forecasts between marketing, global supply chain and site supply chain teams, reducing the variability of production planning, seek commonality of raw materials to lower safety stock levels and multi-echelon inventory optimization