TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
One effective way to increase inventory control and production efficiency is by enhancing packaging. Remove all unnecessary actions and materials in the production and packaging processes. Improper packaging often includes having too much packaging material covering the product. A common mistake in production and packaging is having to use a large amount of packing materials and a small amount of merchandise which do not have a good shelf life or durability. Inventory control software can help reduce the unnecessary waste of production and packaging materials, which leads to a reduction in cost of manufacturing and a rise in profitability.
Control or maintain good relationship with the suppliers. The supply chain management processes that are used to pack goods and initiate delivery usually include the order taking, shipment and clearing and payment or collection. A good supplier list helps in better and quicker identification of possible supplies. It also increases the ability to make customized packaging for specific goods. Maintaining a good relationship with the suppliers allows timely supply of goods on time.
Increase efficiency of the transportation of goods and reduce cost. Increase the productivity of the entire enterprise by improving the transportation of goods and reducing cost. Transportation of goods involves both human and physical efforts and therefore, there is a need for a comprehensive package of services to ensure a smooth transportation of goods. Warehouse inventory management is essential for determining the location and proximity of inventory and demand. Warehouse inventory management helps in demand forecasting and helps in production scheduling and decision making.
