Best practices for managing inventory in a supply chain
For a supply chain to operate effectively, inventory management is essential. It takes careful planning and execution to deliver products to customers at minimal cost and meet demand. Effective warehousing and distribution processes are essential. Read on to learn about the best practices for managing inventory in a supply chain.
Forward-planning is essential for effective inventory management, which is where forecasting comes in. A real time logistics solution that provides complete supply chain visibility can provide an accurate picture to provide businesses with ability to make informed decisions on purchasing stock based on inventory and trends to prevent over or understocking.
The supply chain is made up of numerous stakeholders, including suppliers, manufacturers, and retailers, so effective communication is a must. IFC’s full solution approach to supply chain management always ensures transparency between all supply chain members and cuts out the time-consuming cooperation required when juggling between various supply chain service providers.
Inventory tracking and management systems
Automated inventory management systems and other value-added services like vendor management inventory, multi-country consolidation and GOH processing can help streamline the inventory management process and provide real-time visibility into stock levels, allowing you to make more informed decisions.
Regular inventory audits
Checking inventory on a regular basis ensures the business is up to date with physical stock and that it matches with current records. Conducting inventory audits improves accuracy and allows for adjustments.
Efficient logistics and transportation
Ensuring efficient transportation and the timely delivery of goods is key to inventory management. This requires effective logistics and transportation, reducing lead times and enabling quicker inventory turnover. This also lowers costs in terms of holding inventory.
Optimal inventory placement
Placement of your inventory can make a difference in cutting down on inventory holding costs and improving order fulfilment times. IFC can support you with two store models – Direct-to-Store and E-Commerce – that assist in managing inventory levels from source to shelf.
IFC’s Direct-to-Store model involves processing and consolidating stock at an offshore location before palleted orders are sent to each state for direct store delivery, helping to reduce lead times and streamline stock ordering, among other benefits. The E-Commerce model, meanwhile, is designed to provide a superior delivery experience to customers by providing custom supply chain solutions, improving customer retention rates and business reputation.
Following these suggestions is the easiest way to manage your inventory levels effectively, reduce inventory holding costs and improve customer satisfaction by ensuring that products are available when customers need them.
IFC’s supply chain approach can assist with this, get in touch today to learn more.BACK TO NEWS