3PL Helps Optimize Inventory Management in Northeast Ohio
The best inventory management systems go beyond just tracking products and materials.
Basic warehousing involves overseeing the storage, outflow and receipt of your goods. But even first-rate businesses find it daunting to do so on their own with perfect accuracy. Working with a dedicated Cleveland 3PL warehousing partner can help you meet customer demand and overcome the accuracy and logistical snags that too often trip up otherwise competent companies.
Many Businesses Struggle With Good Inventory Management
A few years ago, researchers at Harvard Business School looked closely at the inaccuracy of inventory management systems. In an empirical analysis of more than 370,000 inventory records at 37 stores managed by one retailer, study authors discovered a stunning 65 percent of inventory records were inaccurate. The study, published by the journal Management Science, identified the top means of streamlining inventory management and reducing errors. These included regular auditing practices and use of cutting-edge inventory software programs that offered real-time monitoring.
The 3PL warehousing and inventory management services offered by On Time Delivery & Warehouse in Cleveland give you these options and more. By having a third party supervise your inventory management and supply chain distribution, you can focus on business development and other critical operation and growth initiatives.
Why Inventory Management Matters
Put simply, inventory management is a means of supervising your non-capitalized assets and items in stock. It’s the part of overall supply chain management that chaperones the flow of goods from you (or the manufacturer) to the warehouse and then on to the point of sale or distribution. Having detailed, correct records is vital to this process. You need accurate inventory records to:
- Plan You need your data to tell you whether you can fulfill client requests and know whether new items need to be ordered. You also need to track the trends to better predict those upticks and downturns. Investors need to see you have a specific plan to adapt.
- Maintain and Improve Customer Service. If your customer calls in to ask an inventory question, you need to be able to find out fast. Providing answers that are timely and correct reflects better on you. It also means better efficiency in moving product, which in turn means higher profits.
- Keep Costs in Check. If your records aren’t right, it could mean last-minute fulfillment that costs more to be expedited. Other times, it requires ordering new items when perhaps it wasn’t necessary because the original item was stocked, just not recorded. If it happens once or twice, it’s usually not a major issue. But multiply it by dozens or hundreds of times, and you’re talking about significant (and preventable) losses.
This is why On Time Delivery & Warehouse is so meticulous about our inventory management operations. We take our responsibility seriously.
OTDW Helps Bolster Your Bottom Line
The 2015 State of Small Businesses Report revealed 6 in 10 small business owners surveyed were prioritizing better levels of customers service. However, companies won’t have the means to make that happen if their current inventory management system has supervisors and staffers constantly scrambling to review back order reports and plug the holes with temporary patches.
To be clear: This issue is common and shouldn’t be viewed as a failure. However, it is a sign that third-party logistics inventory management should be on your radar. On Time Delivery & Warehouse offers an inventory management system that goes beyond a quick fix. We’re a long-term solution.
Our employees are trained and dedicated and our newest inventory software keeps you in touch with the status of your goods at any point during the influx/ outflow cycle. Customized warehousing services, connections with a broad network of ports and commercial trucking services dispatched from a strategic central location in Northeast Ohio make our 3PL an easy choice for many firms seeking better inventory management options.
If you have questions about Cleveland inventory management, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.
Inventory Record Inaccuracy: An Empirical Analysis, April 1, 2008, Management Science
More Blog Entries:
E-Commerce Rise Shifting Demands to More Efficient 3PL Warehousing, Feb. 15, 2018, Cleveland Inventory Management Expert Blog