Radical Change

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
View All

The single most important factor for all supply chains has always been radical change, especially in manufacturers, retailers, and even shippers demands for warehouse and warehousing activities. In some instances even sales activity has stalled to a halt and companies still need places, anywhere, to store extra products and de-stuff containers. These demands are completely dictated by the ever changing environment of the marketplace, which is why companies are always looking for ways to make their operations more productive, faster, and easier to track and facilitate.

Many companies are implementing Supply chain management software programs to make tracking and forecasting accuracy a snap. These programs make it very easy to forecast inventory levels and forecast future demand with just the click of a mouse. Supplier orders can be easily looked up and even purchased from an interactive database for immediate inventory needs, and the ability to track and update many companies inventory information at once is another advantage of the software programs. Software also helps companies to easily and quickly determine their average cost of goods sold, which in turn can help improve their profit margin. This improved profit margin makes it possible to afford better pricing of goods and services to consumers, thereby increasing customer satisfaction and generating increased revenue.

Another benefit of these computer programs is that they greatly reduce the amount of time that it takes to fill and close inventory positions after an unexpected delivery or stock increase. This reduces the risk of having over stocked warehouses and terminals, both of which are likely causes of late nights and late orders, both of which are costly. Also with the use of computerized systems it is easier than ever before to determine which items are not being purchased and sold, which can greatly reduce losses due to items not reaching contracted quantities. These programs also eliminate the problem of sourcing out expensive specialty components when they are needed, which means that Radical Change will reduce the number of returns and the amount of excess inventory that must be stored. All of these factors combine to allow the computerized systems to deliver an excellent guarantee of superior, on-time delivery of inventory to customers.

CIOP Webinar Series

Learn the Global Best Practices in Supply Chain Management, Procurement, and Inventory Management.

60 Minutes of Learning + PDU Letter

Register Now

Do Do you want more information on Certified Inventory Optimization Professional?

Fill in the form to download the quote.