Supply Chain Budget

A supply chain budget is essential for growing companies that bring a product to market to ensure efficient operations, cost control, and strategic planning for the year ahead. By making a supply chain budget, the company defines its goals, objectives, and resource allocation. Moreover, the budget helps the organisation improve by allowing it to challenge the actual results with the budget or simulation. Last, the company can enhance its business plan and margins with the budget while understanding the cash flow requirements. 

Scale-Up Supply can help your company create or improve your supply chain budget. We can use your data and information to create the supply chain budget together. Scale-Up Supply will help you with:

  • Turning data into information

    • Supply Chain Network design

  • Supply Chain simulations

    • Inventory value

    • Expected order quantity

  • Cashflow requirements

The supply chain budget process starts with reviewing the company's business goals and historical data and categorising the budget components. Scale-Up Supply will develop customised supply chain simulations using your transactional data (purchase, sales, and inventory), item data, and defined order cycle. We understand that data might not be available (yet), together, we will define working variables.

Creating supply chain simulations can help derive the expected inventory and purchase order value for the coming year. During the process, we can add and change variables to understand the potential outcome of budget decisions. The calculations are created at the item level, and the outputs can be grouped by product family, vendor, or other relevant categories. After this step, we can estimate the warehousing requirements and costs by using the expected inventory quantity combined with the item volume.

Example output; inventory value forecast

Example output expected inventory value

Example output expected procurement value

Apart from creating simulations and sharing the outcomes, Scale-Up Supply adds value by highlighting and providing recommendations on the current and potential challenges. These can include, among other things, the health of the inventory, purchasing strategy and improvement possibilities.

In addition to the simulation, Scale-Up Supply can create a logistics budget to define expected costs for inbound, warehousing, and outbound logistics.  The budget can be created both in total and on an order level. Based on the available data, information and assumptions, the logistics budget can be defined in total or broken down per variable, as shown in the example below.

Example output expected logistics budget

Example output expected logistics cost per order

Summarizing, why should you reach out to Scale-Up Supply:

  • Effortless development of your customized Supply Chain Budget, tailored to your business needs and key characteristics

  • Leverage Scale-Up Supply's experience with benchmarking supply chain costs and budgets across diverse industries

  • Development of an insightful, challenging supply chain budget featuring clear graphs and visualizations

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Optimizing Inventory