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Navigating global trade and supply chain challenges

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An extreme weather event; a flooded Sri Lankan paddy field.

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



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Kandy driving school hits 100,000-driver milestone, sets sights on expansion

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RWMNJ Bandara MD Dhasuini Driving School

Dhasuni Learners in Kandy have trained over 100,000 drivers, marking a major milestone in the institution’s journey from a modest start-up to one of the region’s leading driver education providers.

Founded on March 31, 2008, in the historic hill capital, the institution began with just a single van, one three-wheeler and one motorcycle. Built on what its founder describes as a commitment to road safety and public service, the driving school has since expanded into a multi-branch operation with six centres across the Kandy district.

Today, Dhasuni Learners has emerged as a significant player in Sri Lanka’s driver training sector, producing thousands of licensed motorists annually while also contributing to local employment generation. The organisation’s broader mission, according to its management, has been to foster disciplined and road-conscious drivers who adhere to traffic regulations.

Over the years, the institution has received multiple accolades for its service standards and entrepreneurial achievement. These include the ‘Best Young Entrepreneur Award’ and ‘Seva Taru Tuthe Award’ in 2018, followed by One-Star and Two-Star service ratings from the Ministry of Industries in 2019 and 2020. It has also secured top rankings from the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) at national and provincial levels.

More recent recognitions include the ‘Best Driving School Award’ in 2023 and the ‘Pitkal Award’ for business excellence, along with a 2025 honour from the Trade Front in collaboration with the Ministry of Industry.

by SK Samaranayake

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HNB Life Introduces “Privileged Protect”, a Future-Ready Protection Solution for a New Generation

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Marking a significant milestone in its journey as it celebrates 25 years of trust and transformation, HNB Life has introduced Privileged Protect, a novel universal life insurance solution designed to meet the evolving financial and protection needs of modern Sri Lankans.

Developed as an evolved protection offering, Privileged Protect combines short-term premium commitments with long-term financial security, giving customers the flexibility to build wealth while safeguarding their future and loved ones.

Designed for individuals seeking comprehensive life protection with greater financial convenience, the product offers a shorter premium paying term while ensuring continued long-term coverage and investment growth opportunities. The policy also includes six compulsory protection benefits, dividend and loyalty dividend entitlements, partial withdrawal facilities after five years, and the ability to convert the maturity value into a monthly income stream. Customers are also provided the flexibility to continue optional riders beyond the premium paying term and enhance their investment through top-up premiums.

Commenting on the launch, Lasitha Wimalaratne, Executive Director / Chief Executive Officer of HNB Life, stated, “As we embark on a bold new chapter as HNB Life, the introduction of Privileged Protect reflects our commitment to continuously evolve alongside the changing aspirations of our customers. Today’s customer seeks greater flexibility, stronger protection, and smarter financial planning solutions that align with their lifestyle and long-term goals. This product has been thoughtfully designed to address those expectations while delivering the security and confidence our policyholders value. As we celebrate 25 years of excellence, we remain focused on shaping the future of insurance through innovative solutions that are relevant, accessible, and future-ready.”

Also sharing his thoughts, Dinesh Udawatta, Executive Vice President / Chief Technical Officer stated, “The modern customer is increasingly looking for insurance solutions that go beyond traditional protection. Privileged Protect is an evolved offering built around convenience, flexibility, and long-term value creation. It is designed for individuals who want to secure their future with shorter payment commitments while continuing to enjoy meaningful protection and wealth accumulation benefits. As HNB Life, we are committed to introducing customer-centric innovations that empower Sri Lankans to confidently plan for the future.”

With the launch of Privileged Protect, HNB Life continues to strengthen its portfolio of future-focused insurance solutions, reinforcing its commitment to protecting lives while empowering customers to achieve long-term financial wellbeing in an ever-evolving world. HNB Life PLC is licensed by the IRCSL and all policyholders are advised to read the policy document before concluding a sale to understand benefits, exclusions, terms and conditions.

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Sri Lanka’s Nazri Nizar elected to YPO global board in historic first

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Nazri Nizar

For the first time in the 76-year history of the Young Presidents’ Organisation (YPO), a Sri Lankan has been elected to its global board, with business leader Nazri Nizar securing a position on the governing body of one of the world’s most influential leadership organisations.

The appointment was confirmed at the YPO Annual General Meeting held on 21 May 2026. Nizar will serve as a YPO global board director from 2026 to 2029 and will concurrently serve as chair of the YPO Global Forum Committee.

Founded in 1950, YPO is a global leadership community comprising more than 38,000 chief executives, entrepreneurs and business leaders across 150 countries. Collectively, its members lead organisations generating approximately US$9 trillion in annual revenue, placing YPO among the most influential peer leadership networks in the world.

Unlike traditional business associations, YPO is built around the philosophy that leadership is a lifelong pursuit. Through a combination of executive education, peer learning and confidential leadership forums, the organisation provides a platform for business leaders to learn from one another’s experiences and navigate the personal and professional challenges that accompany leadership. At a time when organisations are navigating unprecedented technological, economic and social change, platforms such as YPO continue to underscore the importance of learning, collaboration and leadership across borders.

Nizar’s election follows years of service within the organisation. He has previously served as chapter chair of the YPO Colombo Integrated Chapter, been a member of the YPO South Asia Regional Board and, most recently, served on the YPO Global Forum Committee. In addition to his responsibilities as a global board director, Nizar will lead the Global Forum Committee, which oversees one of YPO’s most valued and enduring member experiences.

Commenting on the appointment, Nizar said YPO had played a defining role in shaping his leadership journey.

“YPO taught me that leadership is not about having all the answers. It is about continuous learning, trusted relationships and the willingness to grow through the experiences of others,” he said.

Describing the appointment as both humbling and inspiring, Nizar said he hoped the milestone would encourage more Sri Lankan leaders to engage with global platforms, contribute to international conversations and share their experiences with peers around the world.

Nizar currently serves as group managing director of Richardson Holdings, a diversified Sri Lankan enterprise with interests spanning engineering, infrastructure, renewable energy, manufacturing and out-of-home advertising.

His election represents a notable achievement for Sri Lankan business leadership and reflects the increasing contribution of Sri Lankan executives within international leadership networks.

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