Business
Navigating global trade and supply chain challenges
This article aims to provide a comprehensive understanding of a major challenge to the smooth flow of the supply chain, “The stockouts”, their causes and most importantly, effective strategies to prevent them.
I strongly feel this topic is quite appropriate at a time where most of the companies struggle to eliminate bottlenecks in their supply chains.
In today’s fast-paced business environment, maintaining optimal inventory levels is crucial for success. As businesses strive to meet ever-changing consumer demands, the challenge of preventing stockouts becomes increasingly complex and a robust supply chain planning process with long, medium and short term strategies are key to the success of the supply chain.
Stockouts occur when a business runs out of inventory for a particular product, leaving them unable to fulfill customer requirements.
Let us understand common causes of stockouts. Inaccurate demand forecasting is a major cause as our markets depend on a demand-driven forecast. Poor inventory management is seen in many organizations with inefficient tracking systems or human errors in inventory counts, misleading stock levels, lead time. and sales/ stock miscalculations. Such supply chain disruptions interrupt the flow of goods.
In an increasingly unpredictable world, supply chain (S.C.) disruptions are no longer an exception but the rule. Factors such as natural disasters, geopolitical tensions, extreme weather events, pandemics, labour and raw material shortages, infrastructure challenges, logistical issues, seasonal fluctuations and long lead times due to unexpected conditions and holidays in supplier country have made supply chain professionals a more complex situation. Hence, the supply chain professionals at the customer end should be very knowledgeable in respect of the above conditions when forecasting and final planning as per correct demand.
Stockouts can have far-reaching consequences that extend beyond the immediate loss of sale and revenue. Other such consequences are decreased customer satisfaction, potentially damaging long-term loyalty, reduced brand reputation as frequent stockouts erode trust in your brand and increased operational costs rushing to restock items as a preventive measure.
(Agile supply chains at a higher cost of material and shipping) and market-share loss.
By recognizing these consequences, businesses should focus on implementing robust stockout prevention strategies and investing in effective inventory management solutions.
Let us now discuss as to how we should avoid stockouts and what the key strategies are?
Maintaining accurate inventory records is fundamental to preventing stockouts. Effective inventory management strategies and tools should provide real-time visibility into stock levels. For this, advanced inventory management software systems must be utilized for automated reordering and calculating re-order points.
However, inventory professionals should obtain information (data) with specific, timely, and a very accurate manner. This is why the organizations fail today in computing the correct re-order levels/points.
What to order, when to order, and how much to order depend on the accuracy of such data. If it fails, the entire supply chain will face lots of disruptions.
Further, regular cycle counts, ABC analysis based on consumption values and, VED/SDE/HML stock analysis are vital tools to avoid stockouts and excess stocks.
VED- Vital, Essential, Desired
SDE- Scarce, Difficult to obtain, Easy to obtain as per lead times.
HML -High, Medium, Lowpriced items
I would recommend staff training, utilizing barcode systems, and streamline receiving and issuing processes too to uplift the inventory management system.
Therefore, I wish to reiterate, that accurate Inventory data forms the foundation for effective demand forecasting & inventory optimization strategies.
Determining appropriate stock levels is one of the most challenging tasks faced by inventory managers. To mitigate the risk of stock outs due to uncertainties in supply or demand, Safety stock (or buffer stock) is maintained by stock controllers, which intends to cover any shortfall in cycle stock (moving stock) during the lead time period. It is an important element of the re-order point formula.
Reorder Point (ROP) = (Average consumption × Lead time) + Safety Stock
However, the stock should be balanced between overstock and stock-out situations. There are many methods of calculating the safety stock, such as fixed safety stock, time-based safety stock, and average/max calculations.
(Max. sales × Max. lead time) – (Average sales × Average lead time) = Projected Safety Stock
There are statistical calculations as well.
The performance of the supply chain should be monitored and reviewed. Supply chain manager should “keep an eye’ on the progress on an ongoing basis and gather formal and informal control information. KPI, balance score card, bench-marking( best in class strategy) ,TQM (continuous improvement) are some of the tools to assess the performance of the organization.
Digital transformation revolutionizing inventory management practices within supply chain is offering unprecedented opportunities and challenges for business worldwide. The digital technologies significantly enhance inventory visibility, improved accuracy, advanced demand forecasting and streamlined supply chain collaboration. Despite these benefits, challenges such as system integration complexities, high implementation costs data quality management, cyber security risks and regulatory compliance issues are prevalent.
In today’s world of pandemics, geopolitical shocks and extreme weather events,
efficiency alone is a fragile strategy, The goal is no longer, just resilience, it is ANTIFRAGILITY which means getting stronger from shocks rather than just surviving them.
(The writer is an experienced lecturer and consultant on Supply Chain Management)
E mail- suveentrading@yahoo.com
By Denver Brian Coorey
Business
Hour of reckoning comes for SL’s power sector
By Ifham Nizam
A long-delayed reckoning in Sri Lanka’s power sector is finally beginning to take shape—driven less by choice and more by necessity.
At a time when the country’s fragile economic recovery hinges on stability, the electricity sector—long plagued by inefficiency, political interference, and costly dependence on imported fuel—has re-emerged as both a risk and an opportunity.
It is within this context that The Institution of Engineers, Sri Lanka will host a timely and potentially consequential forum on April 2 at the Wimalasurendra Auditorium, focusing on a “Pragmatic Approach to Electricity Sector Reforms in Sri Lanka and the Way Forward.”
This is not just another technical discussion. It is, in many respects, a reality check.
The keynote address by Eng. Pubudu Niroshan—who stood at the centre of recent reform efforts as Director General of the Power Sector Reforms Secretariat—comes at a moment when the gap between policy ambition and execution has become impossible to ignore.
For over three decades, Sri Lanka has spoken the language of reform. Yet, time and again, progress has been derailed by institutional resistance, political hesitation, and an entrenched reluctance to dismantle inefficient structures.
The result is a sector that continues to bleed financially while passing the burden onto consumers and the broader economy.
High electricity tariffs, supply vulnerabilities, and operational inefficiencies are no longer isolated technical issues—they are macroeconomic threats. Industries struggle to remain competitive, investors remain cautious, and households continue to bear rising costs. The over-reliance on imported fossil fuels has only deepened this vulnerability, exposing the country to global price shocks and geopolitical disruptions.
The economic crisis of 2022 briefly forced a shift in thinking. Under severe fiscal pressure, reform was no longer optional. The passage of the Sri Lanka Electricity Act, No. 36 of 2024 was seen as a breakthrough—an acknowledgment that structural change could no longer be postponed.
But legislation alone does not transform systems.
What has followed is a more grounded, outcome-driven approach—one that attempts to move beyond policy rhetoric. Within a relatively short span, the first phase of restructuring has been pushed through, including the repeal of the decades-old CEB Act, No. 17 of 1969, and the unbundling of the monolithic utility into six state-owned entities.
This is, by any measure, a significant structural shift.
Yet, the real test lies ahead.
Unbundling without genuine market discipline risks becoming another cosmetic exercise.
The promise of a competitive National Electricity Market—long discussed but never realized—will depend heavily on regulatory strength, transparency, and political consistency. Without these, the same inefficiencies could simply be replicated across multiple entities.
Moreover, reform cannot succeed in isolation.
Sri Lanka’s energy transition must be anchored in a broader economic strategy—one that aligns power sector reforms with industrial growth, environmental sustainability, and investment policy.
The proposed “Energy Transition Act,” now under consideration, will be a critical piece of this puzzle. If executed with clarity and discipline, it could provide the legal backbone for a coherent and forward-looking energy framework.
The reference to an Integrated Economic Development Framework (IEDF) in the 2026 Budget underscores this necessity. Energy is not a standalone sector—it is the foundation upon which economic recovery will either stand or falter.
What makes this moment different is the absence of alternatives.
Sri Lanka can no longer afford half-measures or delayed decisions. The cost of inaction is too high, and the margin for error too narrow. Reform, in this sense, is no longer a policy preference—it is an economic imperative.
The upcoming forum at The Institution of Engineers, Sri Lanka is therefore more than a professEng. Pubudu Niroshanional gathering. It is a critical platform where technical expertise must confront political reality, and where long-standing assumptions must be challenged.
For years, Sri Lanka’s electricity sector has been caught in a cycle of discussion without delivery. The shift toward a pragmatic approach signals an understanding that outcomes—not intentions—will define success.
The question now is whether that realization will finally translate into sustained, irreversible change.
Because this time, failure is not just an option—it is a risk the country simply cannot afford.
Business
Dialog introduces Samsung Galaxy S26 Series with AI-powered camera and 5G Connectivity
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, announced the availability of the Samsung Galaxy S26 Series in Sri Lanka through its retail and digital channels, bringing Samsung’s latest flagship smartphone lineup to local consumers. The series includes the Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra, combining advanced AI-powered capabilities, premium design and next-generation connectivity for everyday mobile use, with customers able to experience the power of Dialog 5G Ultra on the devices.
The Samsung Galaxy S26 Series introduces an AI-powered camera system featuring a 200MP AI-enhanced rear camera with improved low-light performance, advanced zoom and intelligent editing tools for capturing and refining content directly on the device. The lineup also includes Galaxy AI capabilities, a privacy display that limits viewing angles to protect on-screen information, and steady video functionality for smoother and more stable video recording.
The Galaxy S26 Series features Dynamic AMOLED displays across the lineup, including a 6.3-inch Galaxy S26, 6.7-inch Galaxy S26+, and 6.9-inch Galaxy S26 Ultra, supporting smooth performance for streaming, gaming and everyday productivity. The devices are available with 12GB RAM and storage options of 256GB or 512GB, while the Galaxy S26 Ultra also offers a 16GB RAM variant with up to 1TB storage for users requiring additional capacity.
Business
Ideal Motors celebrates gala ‘Excellence Awards’ honouring outstanding performance
The Mahindra Ideal Excellence Awards ceremony, a grand celebration to recognize dealers and other stakeholders of Ideal Motors, was held at the Wave n’ Lake Banquet Hall & Restaurant in Welisara recently.
The event was graced by the presence of special guests including Nalin Welgama, Founder and Chairman Ideal Motors, Dilani Yatawaka, Group Managing Director/CEO Ideal Motors, Nimisha Welgama, Director Legal and Corporate Affairs Ideal Motors, Sachin Arolkar, Head International Operations, Auto Division Mahindra & Mahindra India. Senthil Selvaraju, Head International Operations and Customer Service Automotive Division Mahindra & Mahindra India, Sujeeth Jayant, Country Head Mahindra & Mahindra India and Shitam Kundu, Head Domestic Services Mahindra & Mahindra India.
Also, in attendance from Ideal Motors were Kasun Fernando, General Manager Commercial Vehicle Sales Division, Sameera Bamunuarachchi, Deputy General Manager Spare Parts, Logistics & Inventory and Prasanna Manamperi, Deputy General Manager After Seles Service.
The Excellence Awards ceremony honoured the top sales dealers at the provincial and national levels. Recipients were presented with awards, certificates of merit, and cash prizes in recognition of their achievements. The three best national‑level sales dealers from the various categories were further rewarded with an opportunity to visit Bangkok, Thailand. In addition, special recognition was extended to banks and financial institutions that partner with Ideal Motors.
Speaking at the event, Nalin Welgama Ideal Motors Founder and Chairman said, “When we began our journey with Mahindra in 2009, the previous company had sold 300 vehicles in the country, of which nearly 150 had various defects. At that time our journey began by engaging with the parent company in India and repairing those vehicles free of charge. That commitment has brought us to where we are today. As we believe, our journey truly begins after the sale. We are dedicated to strengthening our customers, and in doing so, strengthening ourselves. That is how we transformed the after‑sales service experience.”
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