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Effective SCM initiatives offer several benefits: Lower operational costs : By optimizing inventory levels , improving warehousing efficiency and streamlining orderfulfillment processes, companies can save on storage, labor and transportation expenses.
SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and financial capital in the areas that broadly include demandplanning, sourcing, production, inventory management and storage, transportation — or logistics — and return for excess or defective products.
Interpreting Inventory Turnover Ratio Once the inventory turnover ratio is calculated, interpreting the results provides valuable insights into ecommerce business performance. Understanding these insights helps in making informed decisions regarding inventory management and overall businessstrategy.
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