Revolutionize Your Inventory Flow With Supply Chain Solutions

October 2, 2013 8:03 pm0 commentsViews: 196

By : David Crenshaw

supplychain1Managing inventory flow is much more than just tracking the timely movement of goods and materials along a supply chain. Every port of call along the route generates meaningful data about the status and progress of physical freight which would be utterly wasted if the means of collecting, organizing and analyzing that data did not exist. Every enterprise faces the challenge of matching up production and delivery volume with customer demand. How well an enterprise manages such a challenge weighs heavily on its operating results.

Inventory flow optimization is the science of balancing capital investment constraints against service-level objectives across a large array of SKUs (stock-keeping units) while minimizing supply volatility. Understanding what all their data is telling them is the key on how organizations manage to squeeze maximum efficiency out of their supply chains.

The deployment of technology-driven inventory management systems allow modern organizations to use supply chain efficiency to drive improvements in cash flow. Supply optimization software tools empower organizations by allowing individuals and departments within organizations to share data with other departments as well as external supply partners. In this way, islands of technology can be bridged, shrinking the number of “unknowable” items in the network which negatively influence profitability.

Inventory management insights contributed by technology tools provided by such firms as RateLinx Supply Chain Solutions give large enterprise organizations the wherewithal to make sense of increasingly large and increasingly complex supply chains. supplychain2Today, management consultants are keen to point out that organizations that establish effective policies concerning inventory flow enjoy higher stock price multiples than competitors that do not. The key to achieving the most optimistic operating results lies in expanding the organization’s capacity to analyze and make sense of data. These new data points often concern themselves with previously ignored aspects of trade flow and include such factors as lead times, seasonal demand fluctuations, interest rates (cost of capital), shipment velocity, quality scores, on-time delivery histories, criticality ratings and more. Indeed, the more data that one has to effectively evaluate a supply chain, the more leverage one wields in terms of squeezing inefficiency out of it.

Sophisticated inventory optimization software tools provide the means by which organizations can attain supply chain management excellence. It is axiomatic that manufacturers that actualize their goals with respect to excellence in supply chain and inventory management run more profitably, more safely and encounter far fewer quality and compliance issues than organizations that have no such goals.

 

This article was written by David Crenshaw.  David is a business writer based on the west coast, and is involved in a number of entrepreneurship and logistics communities. For more information about supply optimization software, view website.

 

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