Inventory management is a systematic approach to sourcing, storing, and selling inventory. That includes both raw components and finished products. Your Cleveland inventory management strategy must involve swift and accurate identification of the right stock, at the correct levels, in the right time and place – and at the ideal price point.
Inventory management involves numerous duties, including:
- Controlling and overseeing purchases
- Maintaining the storage of stock
- Controlling the amount of product for sale
- Order fulfillment
This is a huge responsibility – and tough to consistently nail down without the proper systems and professionals in place. That’s why many companies opt to outsource this component of their supply chain.
Any company in a goods-based business recognizes the impact of inventory management on operational efficiency. Lack of adequate inventory will mean lost sales and unsatisfied customers. Too much inventory will mean higher costs for storage and management, less cash on hand, and reduced value of your products. The U.S. government recognizes the value of proper inventory management to the extent that publicly-traded companies are actually required to track inventory and document management systems if they want to be compliant with the Securities and Exchange Commission.
Exact inventory management systems can vary from business-to-business, depending on their size, the types of products sold, and the channels through which they’re sold. That said, partnering with a third-party logistics company means you have the benefit of a system that’s flexible, processes that have been proven, and professionals who are experienced.
Here, we’re going to run through the benefits of outsourcing Cleveland inventory management one-by-one.