Core Benefits of Using Real-Time Inventory Management
Real-Time Inventory Management
As today’s ever-changing economy rises and falls, high-tech components and electronic products are evolving at breakneck speed. Although that means consumers get access to the latest technology, electronic products will also become obsolete at a faster rate. Component manufacturers must keep up with the pace of their supply chains in order to avoid a buildup of excess inventory.
Manufacturing, storing and insuring excess inventory can be an enormous drain on a company’s bottom line. However, the chance to regain the value of those obsolete parts does exist. With real-time inventory management of the company’s supply chain, companies can change their plans according to customer demand and better optimize their inventory.
Something that most manufacturers lack is a third-party logistics provider. An outside resource is useful for helping forecast or project the level of demand. This makes the supply chain transparent and assists the awareness of managers on what components are coming in, selling and being returned.
When searching for a third-party resource, be sure they understand real-time inventory management and that they are able to implement the following:
Real-Time Data Software
It’s crucial for your company to understand where your inventory exists at any given time. In order to better manage the front end of your supply chain, it’s best to utilize a real-time vendor management system. It’s the most cost-efficient way to gauge demand, improve inventory planning, without having to invest in expensive resources on your own.
That means you can sell goods you’ve yet to take physical control of from vendors or suppliers and staff up, based on when shipments are arriving. As real-time information exchange with vendors and sales improves, you can better pace one with the other.
Marketing & Pricing Adjustments
Meeting customer demand is always challenging but implementing a real-time inventory management software will help centralize sales and marketing efforts. Utilizing all product channels is essential – Internet, telemarketing, direct response, retail and mobile. With an improved view of the supply chain, sales and marketing teams can help better manage inventory levels by ramping marketing and pricing up or down appropriately.
Lower Distribution Costs
Supply chain transparency means the warehouse can more accurately staff in advance of, and in the wake of, product launches — and better anticipate return volume. Logistics providers can help you retain visibility into inventory, allowing you to focus more instead on product development or scaling quickly.
Finding a third-party logistics provider gives you access to a warehouse and distribution network which can handle real-time inventory management without increasing costs. AECI has spent years helping other companies manage their inventory and increase productivity and efficiency. Contact us today for more information on our services.