What Is Inventory Management?
The process of tracking inventory from manufacturers, warehouses and other facilities to the point of sale is called inventory management. Inventory can include any goods or material that a business intends to sell for a profit, to its customers. The goal of inventory management is to ensure that the right products reach the right customer at the right time.
Here are the 3 main stages where inventory management is required:
- Purchasing inventory, which includes ready-to-sell goods that are delivered to the warehouse or directly sent to the customer.
- Storing inventory, which includes goods that are stored in multiple fulfilment centres before being shipped to the final customer.
- Profiting from inventory by shipping the right number of finished products for delivery to the customer.
Inventory management is important because it is a common element at all points of the supply chain. Storing too little or too much inventory can both lead to problems. We, at SDR Logistics, understand how to maintain the right balance.
Smooth and Simple
Inventory management is of utmost importance. It has been established that the role of inventory management is to ensure that stock is available to meet the needs of our partners as and when required. SDR Logistics understands the urgency and importance of inventory management, as such we have put in place regular checks and established strong communication links with our partners to ensure stocks are never short. Our experts always look out for the most cost effective methods available so as to keep storage costs low and profit margins high.
Keeping Costs Low
Inventory comprises of a significant amount of cost to the supply chain. This is made up of the cost of the inventory itself, the cost of the transportation of goods, the cost of managing the goods (labor, fumigation, repackaging, etc) and keeping the goods in warehouses. The inventory manager’s job is to make inventory available at the lowest possible cost. To your company that inventory manager would be us, and we would be happy to help your company in the most effective way we can to keep costs low.
In order to attain these low costs, the inventory manager must ensure a balance between supply and demand by establishing minimum holding stocks to cover lead-times. To achieve this, the inventory manager must consistently communicate with the programs to keep on top of changing needs and priorities. The warehouse must always have enough stocks to cover the lead-time for replacement stocks to avoid stock-outs.
SDR Logistics is on top of the game when it comes to inventory management. Contact us today to experience our excellent and unrivaled standards.