The Important Role of Inventory Management in the Supply Chain
What is supply chain?
The facilities, functions, and activities involved in producing and delivering a product or service from suppliers to the end customers. The supply chain includes vendors, manufacturing facilities, logistics providers, internal distribution centers (such as warehouses, distributors, and wholesalers), and any other entities that are involved, up to the final customer.
What is supply chain management (SCM)?
Supply chain management or SCM refers to the various activities and processes to plan, coordinate, operate, control and optimize the whole supply chain system. SCM is the centralized management of the flow of goods and services and encompasses all the processes that transform row materials into final products. Supply chain management helps sales, logistics, manufacturing, procurement, and all your other functions get aligned to ensure that decisions are good for the whole business.
By managing the supply chain effectively, companies would be able to take advantage of value-creation opportunities that their competitors might miss implementing lean manufacturing. Companies that do a good job of managing their supply chain can reduce inventory, improve efficiency, lower cost, reduce delay, and being responsive to the customer needs can help them grow their sales.
The Important Role of Inventory Management in the Supply Chain:
Inventory management system plays the most important and critical role in supply chain, the most important role that inventory plays in supply chains is that of facilitating the balancing of demand and supply. In order to keep the demand of a costumer balanced, organizations need to take care of their inventory because ineffective management can lead to excess inventory, leading to the risk of damage, damage, or demand shifts, leading to stock accumulation. A company maintains inventory to meet its own demand and its customers’ demand for items in the supply chain.
As you know that inventory has a key role in supply chain management you will need a system to accurately track and control your inventory. But choosing the right system for your inventory management could be challenging. CoreIMS inventory management system helps you manage your inventory accurately in a cost-effective way. CoreIMS is a customizable inventory management suitable for commercial and government solutions. Customized to meet the needs of various industry business types, CoreIMS promises real time inventory visibility for 3PL, distribution and packaging companies, government agency, pharmaceutical, freight forwarders, importers and more. Providing support for multiple warehouses and stock locations.