Three ways to improve inventory management for more complex supply chains.
Inventory management complexity increases as companies expand their business, especially in the context of supply chains that span multiple markets and channels. The basic problem for companies that manage operations across various countries is a lack of standard procedures for dealing with those suppliers and sales channels.
The Challenge of Scale
Among the largest corporations, managing sales channels and suppliers gets dispersed across various operating units globally. Managers sitting in the head office struggle to keep tabs on all their activities. They have difficulty gathering accurate and up-to-date information about their suppliers.
SET QUALITY CONTROL STANDARDS
It may not be entirely possible to control the quality measures of your vendors, but you can set up your own strict quality standards and communicate them to your vendors. Once you receive goods in your warehouse, ensure thorough quality checks.
OPTIMIZE WAREHOUSES
Whenever possible, locate warehouses where it is easy and cost-effective to receive supplies and ship products to consumers. The number of warehouses and locations depends on various factors including region, supplier locations, and transportation availability.
EXPLORE THE OPTIONS
Some businesses may not have the wherewithal to deal with complex supply chains and sales channels. They may prefer to use finite resources to focus on their core competencies rather than manage inventory and supplier relationships.