Supply Chain and Logistics Basics
Managing supply chain and logistics operations — from procurement and inventory management through warehouse operations, shipping, and supply chain risk.
When to Use
- Setting up supply chain for a physical product business
- Managing inventory across multiple locations
- Optimizing shipping and fulfillment operations
- Assessing and mitigating supply chain risks
- Building supplier relationships
Supply Chain Functions
SC_FUNCTIONS = {
'procurement': 'Sourcing, supplier selection, purchase orders, vendor management',
'inventory': 'Stock levels, reorder points, ABC analysis, cycle counting',
'warehousing': 'Receiving, put-away, picking, packing, shipping',
'transportation': 'Carrier selection, routing, freight audit, last-mile delivery',
}
def abc_analysis(items: List[Dict]) -> Dict:
"""Classify inventory by value (A=80%, B=15%, C=5%)."""
sorted_items = sorted(items, key=lambda x: x['annual_value'], reverse=True)
total = sum(i['annual_value'] for i in sorted_items)
a_items, b_items, c_items = [], [], []
cumulative = 0
for item in sorted_items:
cumulative += item['annual_value'] / total
if cumulative <= 0.80: a_items.append(item)
elif cumulative <= 0.95: b_items.append(item)
else: c_items.append(item)
return {'A': a_items, 'B': b_items, 'C': c_items}
Verification Checklist
- Key suppliers identified and contracts in place
- Inventory categorized by ABC analysis
- Reorder points calculated for key items
- Shipping carriers evaluated and selected
- Warehouse layout optimized for picking efficiency
- Supply chain risks identified and mitigation plans
- Inventory accuracy measured (cycle count results)
- Backup suppliers for critical components