How can you streamline inventory and supply chain management for finished products?

Reducing inventory levels isn’t what I would call it these days. I prefer to say “right sizing“ inventory levels based on demand and shrinkage. During each stage of the supply chain, we need to monitor lead times, production times, transit times, demand trends, and shrinkage to ensure we have the right inventory in the right places - at the right time. Once you receive the required inventory, it’s time to control it to minimize damages, rework, mis-picks, miscounts, or improper storage to prevent stock outs and lost sales. This is were Lean comes into play such as 5s, process flow, first yield pass, push vs. pull system, etc… To effectively reduce inventory levels, you have to define where inventory is lost in each process step.

I think one of the first steps is to understand the tact times of each process and your on hand inventories. Then what do your contracts look like for purchasing (up or down). Then act accordingly to how to approach and how quickly you are looking at timelines on reductions (space constraints, etc.). You don’t want to get rid of material for having a few months on hand knowing you will use it, only to buy more at a higher price if the market goes up. This scenario is based on people’s personal business plans and needs.

Streamlining inventory levels and supply chain management for finished products involves effective demand forecasting, inventory optimization, supplier relationships, technology adoption, lean processes, and continuous improvement. Employing these strategies reduces costs, improves efficiency, and ensures timely delivery, enhancing overall supply chain performance.

Some ways to start are : 1. Accurate communication across all the parties involved for receipt of inventory from source , it's storage, lead time to deliver considering financial impact 2. Taking up the 80:20 approach for the demand category and to consider the seasonal pattern, 3. Consider rejection, shortage, safety and risk factors that are involved, shelf life, unforeseen natural situations

I agree with that statement because the poin of Inventory reduction is the process of reducing inventory to meet customer demand. So the inventory can be minimize and cash flow can be imporve.

I have seen WMS that shows negative inventory at bin/location level quantity. Inventory accuracy is a critical part of the supply chain. Many WMS allow the user to update the inventory or data manually. Manual updates of inventory will disrupt the entire warehouse operations.

actually Improve inventory accuracy really need to apply in all activity for operation that support supply chain activity. Inventory accuracy can gives a better control over for inventory levels while enabling to manage customer demands efficiently.

I had the privilege to help a large company who was losing approximately $250,000 a quarter in damaged and lost inventory develop a plan to minimize losses. Fortunately with some organization and house cleaning along with a little more time spent educating employees that site takes in just under $100,000 a year in damages and lost product. In that particular industry that is exceptional.

Another perspective to consider in streamlining inventory and supply chain management is the aspect of sustainability. By integrating your systems with suppliers and customers, you can foster a more sustainable supply chain. Sharing data and collaborating effectively can lead to optimized transportation routes, reducing carbon emissions and minimizing the environmental impact of logistics operations. Additionally, integrated systems can help identify eco-friendly packaging options, minimize waste, and promote the use of sustainable materials throughout the supply chain, contributing to a greener and more responsible approach to inventory management.

To streamline inventory and supply chain management for finished products, focus on demand forecasting, just-in-time inventory, supplier collaboration, automation, centralized data systems, continuous process improvement, quality control, sustainability practices, cross-departmental communication, and risk management. These measures reduce waste, cut costs, and improve overall efficiency, allowing for better product availability and quicker response to market demands.

1. Use demand forecasting to predict accurately. 2. Implement just-in-time (JIT) systems. 3. Optimize inventory using ABC analysis. 4. Strengthen supplier relationships. 5. Optimize warehouse layout and use automation. 6. Opt for cost-effective transportation methods. 7. Utilize inventory tracking technologies. 8. Maintain a safety stock level. 9. Continuously improve SCM processes. 10. Apply data analytics for insights. 11. Integrate systems across your business. 12. Incorporate sustainable practices. 13. Develop a risk management plan. 14. Foster cross-functional collaboration. 15. Monitor KPIs like inventory turnover.

Actually I agree partially with this because just relying on the evaluation & optimisation techniques to streamline inventory & SCM to get the results what we expect everytime. Some time just asking self WHY & WHY NOT getting the results solve the problem and to get the solution, for this, we have to go beyond these evaluation & optimisation techniques then only we achieve something different results what we usually get or not !

One thing I found commonly that in streamlining the inventory and supply chain management is the fast adoption of the best new practice and technologies along with the best strategy, because if you don't have the best strategy you failed even you have best practices & technologies in place !!

reduce the amount of inventory you hold at each stage of the process. Excess inventory can lead to waste, higher storage and handling cost

Streamline inventory and supply chain management will check on daily basis with your staff who works with load on daily routine activities like daily target achievement,transportation status from marketing team,daily dispatch targets.

This is critical in everything we do. All leaders must learn how to empower their subordinates within a team. This process, although appears basic, is very challenging as not everybody shares the same standards; however, this is a great opportunity to allow people to learn, develop, and shine. If you never delegate and empower, you will never identify the future leaders of the business.

Almost all major aspects of SCM are covered in this article, but still there are few improvement points which I have observed in most of my assignments are like 1. No system for identification and disposal of dead or obsolete items inventory 2. Contingency plan, mainly for supplier related parts or dispatch related challenges 3. Use of a good inventory management software 4. Less focus on CI tools like Lean Manufacturing We know that the practical challenges of SCM vary from company to company, may be due to product range. The reason to mention is, I have seen a big difference in team size and structure of almost equal size companies, with almost equal no of products & suppliers etc. * Company A - 20 People * B - 12 people * C - 8 people

Another way of streamlining inventory and supply chain is by strengthening your stock controls . Examples is having a vigilant dispatch staff,strong security team/stock controllers ,well calibrated scales and well segregated duties. With these supply chain team will be able to able to do a risk assessment and improve on areas that shows leakages.