Startups & Business News | Glossary
What is a Supply Chain Optimization?
Supply chain optimization is the process of designing, planning, and running a supply chain so it delivers the right products at the right time, at the lowest total cost, while meeting service and quality targets. It focuses on improving how materials, information, and money flow from suppliers to customers across sourcing, manufacturing, warehousing, and transportation.
In practice, it means using data, technology, and analytics to:
Reduce costs (for production, inventory, transportation, and distribution).
Increase efficiency and reliability (shorter lead times, fewer stockouts, better use of capacity).
Improve resilience and profitability by balancing service levels, risk, and cost across the entire network.
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