Producer’s Risk

Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

Producers risk is one of the biggest factors in determining the success or failure of an e-commerce business, especially when the business is designed around logistics. A high volume of inventory turnover, or a high risk of returns, can lead to the loss of profits for e-commerce businesses. Inventory holding costs can quickly add up when a company is trying to meet the demands of supply chain management and customer demands for particular products. In order to reduce inventory holding costs and increase profit margins for their e-commerce businesses, many companies turn to contract manufacturers with extensive experience in warehouse operations. These manufacturers can help e-commerce sites increase their production capacity while reducing warehouse costs.

The major problem facing most e-commerce businesses is finding a method for maintaining a steady flow of products while simultaneously reducing storage costs and eliminating excess inventory. There are two main sources of inventory: direct materials and indirect materials such as finished goods. Direct materials include products like computers, consumer goods, and physical goods like furniture. Indirect materials include inventory held by a supplier that is used to make producing process easier or to complete finished products that may have already been manufactured. The problem with storing a large amount of inventory is that it increases the need for storage space which causes an increased demand for truck parking space, and the additional cost of labor to deliver the merchandise to the warehouse.

An efficient warehouse management system can take full control of the entire production and warehousing process, allowing an e-commerce site to reduce their warehouse operation costs while increasing profit margins. Warehouse automation software is designed to automatically scan the warehouse and adjust the warehousing procedures as inventory levels change. It can also determine the optimum date and time for the delivery of each product from the manufacturer. This streamlined system can dramatically reduce warehouse operations while simultaneously increasing production speed and decreasing distribution cost.