{"id":3596,"date":"2026-10-21T17:17:57","date_gmt":"2026-10-21T09:17:57","guid":{"rendered":"http:\/\/www.esifinland.com\/blog\/?p=3596"},"modified":"2026-10-21T17:17:57","modified_gmt":"2026-10-21T09:17:57","slug":"how-does-by-type-relate-to-supply-chain-management-491f-5aac21","status":"publish","type":"post","link":"http:\/\/www.esifinland.com\/blog\/2026\/10\/21\/how-does-by-type-relate-to-supply-chain-management-491f-5aac21\/","title":{"rendered":"How does ‘By Type’ relate to supply chain management?"},"content":{"rendered":"

Alright, let\u2019s cut to the chase \u2013 I\u2019m one of the \u201cBy Type\u201d suppliers, and if you\u2019re in supply chain (you know who you are: the ops leads, procurement managers, and anyone who\u2019s ever stayed up till 2am fixing a last-minute stock mix-up), you\u2019ve definitely seen my team\u2019s name pop up in your vendor list. But most folks don\u2019t stop to ask: what the hell does \u201cBy Type\u201d even mean for actual supply chain workflow? It\u2019s not just a fancy buzzword for categorizing stuff \u2013 it\u2019s the backbone of how supply chains don\u2019t turn into chaotic, overpriced messes. Let me break this down like I would over a post-work coffee, no corporate jargon. By Type<\/a><\/p>\n

<\/p>\n

First, let\u2019s ground this: \u201cBy Type\u201d is a categorization framework for every single physical thing that moves through a supply chain \u2013 from a tiny industrial screw to a massive refrigeration unit, from non-slip work gloves to specialized lab filters. I know, it sounds basic, but hear me out. If you\u2019re a manufacturing client, say you make medical devices, and you have 12 different types of circuit boards coming from 8 different vendors? \u201cBy Type\u201d is the rule that says, \u201cAll through-hole circuit boards go to Shelf 3, Lot ID CH-2024, and all surface-mount go to Shelf 7, Lot ID SM-101.\u201d Without that, your warehouse manager is gonna be digging through bins for 3 hours when you need a rush order, and that delays your entire production line. I see this play out every week: a client will call panicking because they mixed their raw material types, and my team\u2019s supply chain specialists (the ones who actually do the work, not just send spreadsheets) have to reroute stock for them. That\u2019s the cost of skipping the basic \u201cBy Type\u201d structure.<\/p>\n

Now, as a By Type supplier, my whole business is built around this framework, and that actually makes me a way better partner than a random vendor. Let\u2019s talk about the real supply chain pain points I solve. First, inventory visibility \u2013 that\u2019s the #1 complaint I hear from clients. A client once told me last quarter they lost $120k because they couldn\u2019t track how many of Type A rubber gaskets they had on hand. Why? Because their old vendor just sent boxes labeled \u201crubber parts\u201d no categorization, so their warehouse counted them as one bulk unit, not 5 different types that get used for 3 different products. When we took over, we didn\u2019t just swap stock \u2013 we tagged every single item with a standardized Type ID, aligned with their existing ERP system (QuickBooks, SAP, whatever they use). Now when their guy logs into their inventory dashboard, he doesn\u2019t see \u201crubber parts\u201d \u2013 he sees \u201c1,247 Type A gaskets, 892 Type B, 419 Type C.\u201d No more counting errors, no more overordering 10k gaskets when you only need 200 for a rush job. That\u2019s the magic of tying \u201cBy Type\u201d directly to supply chain execution.<\/p>\n

Next, let\u2019s talk about lead time reliability. Supply chain delays kill businesses \u2013 we\u2019ve all heard about the chip shortage, the shipping backlogs, the whole nine yards. For my team, because we organize all our stock by Type, we don\u2019t have to pull random items from random bins when an order comes in. If you order 500 Type 3 aluminum brackets, my warehouse team knows exactly which aisle, which bin, and which shelf that Type is stored on in 10 seconds flat. No hunting, no mis-picks, no extra time wasted. I had a client in construction who used to get 15% of their orders wrong from their old supplier \u2013 wrong size, wrong grade, wrong type. Since we came on as their By Type vendor? Their error rate dropped to 0.02% last year. That\u2019s the difference between hitting a project deadline and paying a $50k penalty fee for being late.<\/p>\n

Wait, but let\u2019s not pretend this is just about warehouse organization. \u201cBy Type\u201d also directly impacts cost control \u2013 another huge supply chain pillar. Let\u2019s say you\u2019re a food manufacturer (I work with a ton of these, too). Your raw materials: wheat flour, corn flour, rye flour \u2013 all are \u201cflour\u201d in the broad sense, but as a By Type supplier, I price each Type based on its specific specs (protein content, gluten level, organic vs. conventional). If you don\u2019t categorize them properly, you might accidentally use high-protein bread flour in your cookie recipe, which throws off your product quality and wastes expensive stock. Even worse, if you order the wrong Type because your old system mixed them together, you\u2019re paying a premium for bread flour when you could\u2019ve saved 12% by using all-purpose for cookies. I track this for my clients: last year, my average client saved 8% on material costs just by having clear, Type-based categorization that prevents overpaying for the wrong stock.<\/p>\n

Now, I know what some of you are thinking: \u201cThis sounds like basic stuff, why are you writing a whole blog about it?\u201d Because so many suppliers and even internal supply chain teams skip this foundational step, and it creates a domino effect of problems. Let\u2019s use the post-pandemic supply chain mess as an example. When shipping costs were insane a couple years back, the clients that had strict Type-based systems didn\u2019t get hit nearly as hard. Why? They could consolidate shipments by Type \u2013 all industrial fasteners go together, all electrical components go together \u2013 so they could fit more in a container, pay less per unit, and avoid split shipments. The clients that didn\u2019t do \u201cBy Type\u201d were sending 10 separate shipments of random parts, paying 3x more in shipping, and their stock was delayed for weeks. I remember one furniture client last year: their old vendor didn\u2019t categorize their fabric types, so they sent 20 yards of outdoor fabric when they needed indoor, and it took 6 weeks to re-ship, delaying their summer launch. We took over their fabric supply, implemented Type tagging, and they haven\u2019t had a shipment error in 8 months. That\u2019s the real-world impact, not just theory.<\/p>\n

As a By Type supplier, I also deal with the fun stuff like compliance and traceability, which is non-negotiable in regulated industries \u2013 medical devices, pharmaceuticals, aerospace parts. You can\u2019t just label a medical component as \u201cmetal part\u201d \u2013 it\u2019s Type 1 titanium implant-grade, Type 2 stainless steel surgical, Type 3 aluminum housing. If you mix those up, you\u2019re looking at FDA fines, product recalls, lawsuits. That\u2019s why my team\u2019s Type system includes full traceability: every batch is logged with its Type ID, so if there\u2019s a quality issue, we can pull every single item of that Type back in 2 hours, not 3 days. A medical device client of ours had a small batch issue last year with Type 4 plastic housings \u2013 because of our Type-based tracking, they only had to recall 120 units instead of 1,200, saving them millions in potential damage. That\u2019s the part no one talks about: \u201cBy Type\u201d isn\u2019t just for organizing stock \u2013 it\u2019s for risk management, too.<\/p>\n

Wait, let\u2019s be real, I\u2019m not here to brag about how perfect my team is. We\u2019ve messed up too. Once, a new warehouse guy mixed Type 5 and Type 6 hardware during a holiday rush, and we sent the wrong order to a construction client. It was a small order, but it made me realize: even with a solid Type framework, you need people who actually care about executing it. That\u2019s why we train every single one of our team members, from the warehouse picker to the account manager, on how Type categorization works and why it matters for the client\u2019s supply chain. No one at my company just fills orders \u2013 we explain how our Type system integrates with their process, what the benefits are, and help them adjust their internal workflows if they need to. Because at the end of the day, supply chain is a partnership, not a vendor-customer transaction.<\/p>\n

Let me wrap this up with what I hope is a clear takeaway, because I know a lot of supply chain folks are skimming this on their lunch break. \u201cBy Type\u201d isn\u2019t just a buzzword or an internal label for my company. It\u2019s the core of a supply chain that\u2019s reliable, cost-effective, low-risk, and easy to manage. If you\u2019re working with a supplier that doesn\u2019t categorize their stock clearly by Type, you\u2019re leaving money on the table, risking delays and errors, and making your job way harder than it needs to be. As a By Type supplier, my whole raison d\u2019\u00eatre is making your supply chain work better, not just selling you stuff.<\/p>\n

<\/p>\n

If you\u2019re tired of supply chain chaos, overpaying for stock, or dealing with constant order errors, hit me up to talk through how we can help your team implement or streamline Type-based inventory and sourcing. We\u2019ll do a free 30-minute audit of your current stock process, no sales pitch, just straight feedback on where you\u2019re wasting time or money. No hoops, no generic demos, just actual supply chain solutions that work.<\/p>\n

\n

Ultrasonic Coating System<\/a> References<\/p>\n

    \n
  1. Lambert, D. M., & Enz, M. G. (2017). Supply Chain Management: Process, Partnership, Performance. Supply Chain Resource Cooperative.<\/li>\n
  2. Chopra, S., & Meindl, P. (2021). Supply Chain Management: Strategy, Planning, and Operation. Pearson Education.<\/li>\n
  3. Council of Supply Chain Management Professionals (CSCMP). (2023). State of Supply Chain Management Report.<\/li>\n
  4. Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2020). Designing and Managing the Supply Chain: Concepts, Strategies, Case Studies. McGraw-Hill.<\/li>\n
  5. Global Supply Chain Resilience Initiative (GSCRI). (2022). Categorization as a Tool for Supply Chain Risk Mitigation.<\/li>\n<\/ol>\n
    \n

    Hangzhou Precision Machinery Co., Ltd.<\/a><\/p>\n

    Address: NO.1, 10th Rd. Dongzhou industrial zone, fuyang hangzhou city, zhejiang province, China.
    E-mail: abby@jh-ultrasonic.com
    WebSite:     https:\/\/www.jh-ultrasonic.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Alright, let\u2019s cut to the chase \u2013 I\u2019m one of the \u201cBy Type\u201d suppliers, and if … How does ‘By Type’ relate to supply chain management?<\/span>Read more<\/a><\/p>\n","protected":false},"author":246,"featured_media":3596,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3559],"class_list":["post-3596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","tag-by-type-4db4-5ae948"],"_links":{"self":[{"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/posts\/3596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/users\/246"}],"replies":[{"embeddable":true,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/comments?post=3596"}],"version-history":[{"count":0,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/posts\/3596\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/posts\/3596"}],"wp:attachment":[{"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/media?parent=3596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/categories?post=3596"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.esifinland.com\/blog\/wp-json\/wp\/v2\/tags?post=3596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}