What is Six Sigma Plus ?
Most of us would have heard of the revolutionary quality management methodology and framework, Six Sigma. For quality professionals and people in manufacturing and operations, Six Sigma is a buzzword for effective quality management and rigorous application of defect prevention and reducing wastage in the organizational processes. However, in recent years, there has been movement […]
Facility Layout – Objectives, Design and Factors Affecting the Layout
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Important Concepts of Six Sigma
Types of Variables In the equation – Y = f(X), Y is the dependent variable and it is dependent on the variable X. In other words, when there is a change in value of X then value of Y will automatically change. The following are the characteristics of both types of variables: Y X Dependent […]
Saudi Arabia’s Cash Crunch
Saudi Arabia’s Precarious Position Saudi Arabia is believed to be one of the richest countries in the world. This desert country has a vast oil-rich landmass. This has led Saudi Arabia to have connections to some very powerful allies. The United States and almost all western countries may be ideologically opposed to the Saudi empire. […]
Perspective on International Trade – Meaning and Important Concepts
International trades between countries and across continents have existed for centuries including previous civilizations. Traditionally international trade consisted of traded goods like textile, food items, spices, precious metals, precious stones, and objects of art and various items across the borders. Everybody has heard of the silk route as well as amber road and other famous […]
The latest trend in all industries has been to outsource inventory management functions to Third Party Service providers. Companies outsource both Raw Material Inventory as well as Finished Goods to the Service Provider.
In case of finished goods inventory, depending upon the supply chain design, there may be multiple stocking points at national, regional and state levels. In such an event each of the warehouse a different service provider may manage operations, as one may not be able to find a supplier having operations all over the country.
Therefore the inventory in such a situation will be managed in the Company’s system as well as in the Service provider’s system. Inventory management and control becomes a critical function especially in such situations where multi locations and multiple service providers are involved.
To ensure Inventory control is maintained across all locations, following critical points if focused upon will help:
Especially in a 3rd Party Service Provider’s facility, it is important to have process adherence as well as defined management, authorization and escalation structure for operations failing which inventory operations will not be under control.
Daily stock count should be able to reflect location accuracy, stock accuracy as well as transaction summary for the day.
Inventory is nothing but money to the company. If 3PL vendor is managing the inventory, needless to say you should have your processes in place to be able to control and maintain inventory health.
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