Optimizing Supply Chain Software: The ‘Wealth Distribution’ Framework for Inventory, Fleet & WMS Efficiency

Logistics software can save companies millions. But it’s not just about technology—it’s about strategy. Let’s talk about building smarter supply chains using a surprisingly relatable framework: wealth distribution thinking.

What Coin Collectors Can Teach Us About Supply Chains

I was browsing an online forum when a question caught my eye: “What percentage of your net worth do you keep in coins?” It got me thinking. The same instincts that guide collectors’ decisions about their collections apply to supply chain management.

Whether you’re a numismatist with a prized collection or a logistics director running a warehouse network, you’re asking the same question: How do I best use my limited resources to create the most value?

In supply chains, our “coins” are inventory, trucks, warehouse space, and software systems. Our “wealth distribution” is how we allocate these assets. Just like collectors debate whether coins are investments or hobbies, logistics teams must decide where to focus their budgets—maintenance, innovation, or compliance.

The Three Ways Logistics Teams Think About Their Systems

From those coin collector discussions, I noticed three distinct approaches—each with a direct match in supply chain management:

• The “It’s Just a Cost” View: “I see my coins as worth $0 since I’ll never sell them.” This mirrors companies that treat their warehouse management system (WMS) as a necessary expense. They keep the lights on but rarely ask if their systems could do more. The result? They miss opportunities in better forecasting, smarter routing, and turning inventory data into profit.

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• The “Preserve Value” Approach: “I track values so I can get most of my money back if needed.” These teams focus on maintaining asset worth—99.9% inventory accuracy, truck resale value tracking, and clean data in their systems. This matters most when you need to prove value to auditors, buyers, or insurers.
• The “Build Value” Mindset: “My coins are business assets, hobbies, and investments all in one.” These are the innovative companies. Every dollar in logistics tech goes toward creating future advantages—automation, AI planning, and real-time tracking that pays for itself.

The 5% Rule: How Much to Spend on Logistics Tech

Many collectors limit coins to 2–5% of their wealth. “If I put more than 5% in, I start to worry… it stops being fun.” This works surprisingly well for logistics tech budgets too.

Most companies get the best results spending 2–5% of their operating budget on logistics technology. But here’s what changes that number:

When to Stick With 2–5%

• Predictable operations: If your business is steady (like retail distribution with consistent products), don’t over-engineer solutions. Focus on small upgrades—move from barcodes to RFID, or from basic to cloud-based WMS with simple integrations.
• Thin-margin sectors: In grocery or bulk goods, every penny counts. Keeping tech spend lean preserves cash for warehouse improvements or team bonuses.
• High-compliance industries: In pharmaceuticals or aviation, meeting regulations takes priority. Save the “nice extras” until you’ve nailed the requirements.

When to Invest Heavier (10–25%)

Like the collector who admitted “25% of my net worth is coins—I’m nervous but committed,” some businesses need to spend more to stay competitive:

• Fast-growing e-commerce brands: Scaling from 100 to 1,000 daily orders needs smart warehouse layouts, automated picking routes, and instant shipping updates. One Shopify brand spent 12% of their budget on a custom vision-based WMS—and cut labor costs by 38%.
• Global logistics providers: Managing dozens of clients means complex billing, multi-warehouse coordination, and smart cross-docking. Under-investing here means losing money on every shipment.
• Autonomous transport: Self-driving trucks and drones require constant data collection, predictive maintenance, and processing power at every stop. It’s expensive now, but creates lasting advantages.

Building Smarter Systems: Real Implementation

How do you apply these ideas in practice? Here are three approaches I’ve used with clients:

1. Inventory That “Knows” When It’s Time to Move

Just as collectors monitor coin values for their heirs, your system should track inventory liquidity:


// Pseudocode: Inventory liquidity calculation
function computeLiquidity(sku) {
const marketDemand = getHistoricalSales(sku, '90d');
const supplierLeadTime = getSupplierLeadTime(sku);
const obsolescenceRisk = getObsolescenceRate(sku);
const warehouseTurns = getTurnoverRate(sku);

let score = 0;
score += marketDemand * 0.4; // Strong sales = easier to sell
score -= supplierLeadTime * 0.3; // Long waits = tied-up cash
score -= obsolescenceRisk * 0.2;
score += warehouseTurns * 0.1;

return Math.max(0, Math.min(100, score)); // Keep between 0-100%
}

// Use: Flag items below 30% for quick sales


This turns inventory management into a proactive process—like a collector selling before a market drop.

2. Stop Wasting Money on Idle Assets

One collector noted: “Coins don’t generate income—they cost money to store and insure.” The same goes for unused trucks and equipment. Use real data to find waste:


// Pseudocode: Fleet optimization
function optimizeFleet(vehicles) {
return vehicles.map(vehicle => {
const utilization = getDailyMiles(vehicle) / vehicle.maxCapacity;
const maintenanceCost = getMonthlyMaintenance(vehicle);
const insuranceCost = getMonthlyInsurance(vehicle);

if (utilization < 0.4) { return { ...vehicle, action: 'SURPLUS', savings: maintenanceCost + insuranceCost * 0.8 }; } if (utilization < 0.7) { return { ...vehicle, action: 'REDEPLOY', suggestedRoute: findOptimalRoute(vehicle) }; } return { ...vehicle, action: 'KEEP' }; }); }

One regional distributor used this to cut their fleet by 22%—saving $1.2 million annually.

3. Treat Innovation Like a Side Project

Many collectors budget 1% of income for new coins. Try the same with your WMS:

• Q1: Test computer vision for faster, more accurate put-away
• Q2: Add blockchain tracking for regulated products
• Q3: Create a digital warehouse model to test changes before implementing
• Q4: Work with a last-mile delivery startup to improve routing

This approach funds innovation without risking core operations—just like buying coins with investment profits.

When It's Time to "Sell" Your Technology

One collector shared: "I sold most of my collection when it grew beyond my comfort zone." Supply chains need this too:

• Outdated WMS: If 30% of your tech team's time goes to maintaining old systems, upgrade to a modern cloud solution—even if it hurts short-term.
• Over-engineered solutions: A routing system that needs 5 engineers to maintain might be better replaced by a specialized tool.
• Stale inventory: Program automatic discounts for items that haven't sold in a year with low liquidity scores.

The "Too Much" Warning

When a collector says "25% of my wealth is coins—I'm barely sleeping," they're signaling danger. In logistics, watch for:

• One warehouse holding most of your inventory (instead of distributed fulfillment)
• Relying on a single shipping provider for nearly all deliveries
• A rigid WMS that can't adapt to new locations

Reduce these risks by:

• Setting up small urban fulfillment centers
• Connecting to multiple carriers through tools like ShipStation or EasyPost
• Building your WMS in flexible, independent components

Your Logistics "Financial Statement"

Just as collectors track their coin's value, create a logistics dashboard showing:

• Asset Overview: Inventory (liquidity), trucks (usage rate), systems (technical health)
• Spending Breakdown: 5% for AI, 3% for compliance, 2% for new ideas
• Innovation Budget: 1–3% for experimental projects (like AR training)
• Sell Triggers: When to retire underused assets (e.g., less than 40% use for 90 days)

The best logistics teams don't just operate warehouses—they manage asset portfolios. They apply the same careful thinking to their systems, vehicles, and stock as collectors do to rare coins. They ask: "Is this 5% or 25% of our resources? Is it a cost, a value-preserver, or a growth driver?"

Answering these questions with data—not guesses—is how you build a supply chain that doesn't just work, but wins.

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