July 3, 2019
Logistics and supply chain management has quickly grown into one of the most crucial processes around and for a good reason. It’s easy to see why this is the case – after all, logistics deals with the processes involved in managing the transport flow and storage of goods & services. Meanwhile, Supply Chain Management (or SCM for short) deals with the overseeing of materials, information, and finances as they move in a pre-defined manner from the supplier, to the manufacturer, to the wholesaler, to the retailer, and – finally – to the consumer.
With the massive expansion industries are witnessing across a host of verticals, it’s pretty evident that the complexity of processes involved in said industries is also bound to expand to a considerable extent. It’s a statement that’s especially true when it comes to the act of transporting, storing, and distributing goods & services. Thus, it becomes the need of the hour to ensure that little to no problems come in the way of new-age companies and conglomerates streamlining their processes. This will ensure that the journey of said inventory is hassle-free, ultimately providing customers with a much-needed sense of satisfaction.
Speaking of inventory, it’s time to talk about one of the most important aspects of logistics and supply chain regulation – inventory management. The fact of the matter is that, without following adequate inventory management procedures, a company’s logistics-driven processes will be doomed to failure before they even really take off. To put this statement into context, let us state some of the many reasons why logistics and supply chain regulation cannot be carried out with adequate inventory management procedures.
Helps map out a company’s inventory
The first and foremost thing that inventory management will help accomplish in the grand scheme of things is something that the name itself already reveals. With the sheer scale at which companies operate in modern times, it becomes infinitely clear that mapping out a company’s inventory becomes the need of the hour. This is where inventory management comes into play, using software and modules to ensure that little to no problems come in the way of people attaining the inventory they want.
Tracks and maps out complex processes
Another reason why it’s essential for any company to utilise inventory management is due to the sheer number and scale of operations being carried out regularly – something we’ve already touched upon before. With the high level of complexity present in the industries of today, inventory management will allow companies to maintain a sense of cohesiveness and structure in the processes being implemented.
Employs new-age techniques
Inventory management brings with it several processes that are explicitly designed to provide an end-to-end solution regarding the various procedures present in logistics & supply chain management. There’s Stock Review, which maps out the current level of inventory and correlates it with future requirements. Just-In-Time (JIT) Methodology ensures that customers demand is met by analysing their behaviour and ensuring product availability at appropriate intervals. Finally, there’s the ABC Methodology that groups products in three different sections – category A (high-value and low-quantity goods), category B (moderate-value and moderate-quantity goods), and category C (low-value and high-quantity goods).
The points mentioned above make it clear that any logistics-driven process will be woefully inept without implementing proper inventory management practices. To learn precisely how you can make the most of inventory management to augment the existing logistics and supply chain management processes present in a company, we highly recommend that you opt for a MBA Logistics & Supply Chain Management course from ILAM to achieve the same.