THE STRATEGIES TO BETTER IN MANAGE INVENTORIES (Know your customer…
THE STRATEGIES TO BETTER IN MANAGE INVENTORIES
Know your customer services level
*companies that offer single service will decrease their margin to meet the customers satisfation
*smart organization will using specific service strategic such as provide their stock into different level. for example. divide by three different level.
first level = critical product eg: medical tools and it spare part.
second level= non critical product but maybe need to meet the specific market need eg: cosmetics
third level= needed over a longer time frame. eg: furniture,made to order goods and luxury product.
before any company wants to take an advance step they should know their customer needs first.
consider vendor managed inventory strategies
Some companies involved in manufacturing, integration or assembly rely on vendors to manage their own inventory until they are used at the production line.
Under this arrangement, the manufacturer doesn’t have to carry any inventory, and only pays for inventory when used. This strategy is generally ideal for manufacturers but can load certain costs upon the vendor.
Excellent IT Systems
there a lot of company are using Enterprise Resource Planning system in their warehousing management system.
so to make the system is using in the maximum capability, the operator need to know well how to use it.
the operator that handle it need to understanding science and art of inventory management.
company that have latest technology will have the competitive advantage in the market.
so every company need to improve their it management in order to survive in the market.
an excellent it system will improve the company profit.
consider postponed logistic
About delaying the creation of the final product until the last possible moment.
helps companies meet demand effectively with lower levels of inventory
great benefit for demand forecasting. this also may drive pushing the packaging or final assembly of the products allowing the manufacturer to personalize, configure finished products to customer orders, and change the final product mix to suit any changes in demand,
used to make sure the stock not running out.
so important to plan ahead when building the inventory re-ording strategic
using combination of previous sales history, trend in sales and also demand. also the average lead time to receiving new inventory