Companys approach to Inventory Health
February 12, 2025
There has been a conspiracy theory amongst Apple iPhone users that Apple slows down the performance of the older phones. The critics of this policy believe that Apple does this to force the users to get rid of their old phones with performance problems. The move is aimed at forcing users to upgrade to newer […]
Ever since the great recession ended in 2009, the entire world has been following loose expansionist monetary policies. However, after a decade of such policies, most countries in the world have now started resorting to monetary tightening. The Federal Reserve has raised interest rates four consecutive times in the past four years. The Reserve Bank […]
Introduction Manufacturing has evolved considerably since the advent of industrial revolution. In current global and competitive age, it is very important for organization to have manufacturing practice which is lean, efficient, cost-effective and flexible. World class manufacturing is a collection of concepts, which set standard for production and manufacturing for another organization to follow. Japanese […]
It has become commonplace in contemporary organizations to have extensive IT (Information Technology) infrastructure and software and hardware assets. Indeed, with the wholesome adoption of IT by organizations, there is no organization worth its name that does not have an IT backbone no matter how small it is. This means that organizations cannot function without […]
Introduction A successful organization is built on satisfied and trained employees. They are the company’s greatest assets. Employee development is defined as formal education, on-the-job training, previous job experience, personality mapping, and improvement in the current skill sets as to prepare the employee for future. A trained and developed staff will contribute to productivity increase, […]
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.
Your email address will not be published. Required fields are marked *