In today’s dynamic landscape, there’s no room for inventory strategies that tie up your cash flow. Smart operators are turning supply chain cost reduction and risk management into their biggest competitive advantage.
Calculated strategies slash your fulfillment costs without eroding margins, transforming inventory from a burden into a profit engine—starting this quarter.
Supply chain execution solutions (WMS, OMS, Planning and Intelligence) put precision into all your warehouse, shipping, and fulfillment processes to boost your bottom line.
A catalyst for redefining fulfillment
For fulfillment leaders and operations professionals, macroeconomic shifts—defined by unpredictable tariff impacts, sky-high costs, and volatile policy changes—can feel like navigating a tightrope in a storm.
The stakes are high: missed customer expectations, rising operational expenses, and decision-making riddled with uncertainty.
Every crisis is an opportunity
But in the words of that timeless mantra: never let a good crisis go to waste. What if all this tariff and trade turbulence could serve as the perfect catalyst to unlock new opportunities?
Instead of reacting defensively with safety stock, this is the time to lean into supply chain strategies that blend immediate cost control with long-term agility.
Renegotiating contracts, rightsizing inventory, dynamically sourcing materials, and refining fulfillment channels—it’s completely possible, and Deposco’s supply chain software is here to help.
How to cut fulfillment costs, unlocking 20-40% savings
Here’s your roadmap to take back control and recalibrate your supply chain for strength. These four high-impact levers will provide both immediate budget relief and sustained strategic flexibility.
#1: Dynamic sourcing and inventory rightsizing
Estimated Impact: 10–20% reduction in excess safety stock
No more overstuffed warehouses. With real-time visibility and smart allocation systems, you can reduce safety stock while continuing to meet demand. Intelligent threshold rules and multi-factory sourcing enable businesses to replenish dynamically based on the most efficient source.
- Real-time inventory visibility ensures stocks are right-sized and adaptive
- Allocation rules automate decisions driven by demand fluctuations
Learn what you can do with inventory planning software.
#2: Vendor‑managed inventory (VMI) and drop‑shipping
Estimated Impact: 20–30% cost reduction in carrying costs
By integrating vendor-managed inventory or OEM drop-ship processes into your operations, you can shift the inventory burden upstream while boosting fulfillment efficiency downstream. Goodbye, excess stock. Hello, streamlined operations!
- Automates triggers for vendor replenishment
- Leverages integrations to shorten lead times and boost efficiency
Research by Oxmaint proves VMI can cut inventory costs by 15–30% while improving service levels by up to 15%.
Deposco’s sourcing and purchasing software improves visibility and purchasing, while our pre-built supply chain integrations enable seamless collaboration with vendors and drop-shippers.
Connect systems you already use such as ERP, CRM, marketplace, and others. Bright Socket brings all your supply chain data into one platform to significantly reduce costs and implementation time.
#3: Contract and carrier renegotiation
Estimated Impact: 5–10% savings on shipping costs
Rising carrier rates don’t have to be an inevitability. Take advantage of data-backed insights into carrier performance and service quality to renegotiate smarter contracts. By centralizing your carrier agreements and SLA metrics, you’ll have better leverage to reduce costs and optimize your shipping strategy.
- Track carrier performance to tie negotiations to measurable value
- Simulate and analyze rates for more innovative scenario planning
Learn more about rate shopping.
#4: Rules‑based fulfillment optimization
Estimated Impact: 5–15% operational efficiency savings
Dynamic rule engines are game changers, enabling real-time fulfillment decisions. Businesses can route orders based on factors such as cost, demand, and capacity, creating more efficient workflows and reducing wasted resources.
- Live optimization for routing across facilities and carriers
- Deliver speed and accuracy for meeting customer needs with less waste
Learn how to automate order allocation with Deposco’s order management and DOM solutions.
Combined impact: a better bottom line
Together, these inventory strategies have the potential to unlock a 20–40% reduction in costs and tied-up capital, delivering immediate savings while building an agile backbone for long-term growth.
With Deposco, you’re not just reducing your supply chain costs—you’re future-proofing your business. Here’s how we make it happen:
- Real-time visibility: Across multiple locations for smarter sourcing and inventory adjustments.
- Dynamic rule engines: Continuously refine allocation and fulfillment strategies as conditions evolve.
- Vendor collaboration tools: Ease integrations for VMI and drop-shipping to reduce operational and financial burdens.
- Contract management solutions: Centralize negotiations and simulate rate scenarios for optimal cost control.
- Iterative reinforcement: Analytics and feedback loops embed smarter decision-making into your execution workflows, enabling continuous improvement.
Seize the moment with Deposco
This is not a time for mere survival—it’s a time for proactive transformation.
The future belongs to the agile. Are you ready?
Get help from Deposco in tackling uncertainty with confidence, cutting supply chain costs while building the adaptive capacity to tackle whatever comes next.