What kind of management is your inventory suitable for?

Choosing what kind of inventory is more reasonable is worth exploring the topic. In the supply chain efficiency is very high, the supplier management inventory of course very good, but many companies do not have the prerequisite for the implementation of this management. In short, the optimization of inventory management is a long-term system engineering, companies need to step by step.

In order to achieve global optimal, supply chain members should recognize what is optimal for the entire system, in order to coordinate the behavior of members of the supply chain, must obtain information, and access to information is the most effective way to establish a shared risk sharing risk strategic alliance The This win-win partnership provides a breakthrough management approach to supply chain inventory management. Here are four supply chain inventory management methods.

1 Vendor Managed Inventory (VMI)
VendorManagedInventory (VMI) system, sometimes referred to as the “supplier supplementary inventory system”, refers to the supplier’s user’s permission, the management of the user’s inventory, the supplier determines the level of each product inventory And strategies to maintain these levels of inventory.

2 Joint Inventory Management (JMI)
Joint inventory management is based on the integration of dealers based on a risk-sharing inventory management model. It is different from VMI, it emphasizes the two sides at the same time to participate in the joint development of inventory control plan, so that both sides can be coordinated with each other, so that inventory management as a bridge between supply and demand links and links.

Implementation of joint inventory management needs to do the following aspects:
(1) to establish a supply and demand coordination of the management mechanism;
(2) to establish information sharing and communication system;
(3) to establish mutual trust between dealers.

3 Customer Management Stock (CMI)
Relative to VMI, CMI (CustomManagedInventory) is another and its relative inventory control, distribution system, many people believe that, in accordance with the consumer market and the degree of close, retailers in the distribution system as the closest to consumers, in understanding consumption The consumer’s habit of the most right to speak, so it is the core of the chain should be owned by the retailer management. Those who hold this view argue that the farther the members of the distribution system from the consumer market will not be able to accurately predict changes in consumer demand.

4 Use third-party logistics providers to manage inventory
Due to resource constraints, no company can be self-sufficient to become a business expert. Third-party logistics providers can provide efficient inventory management services to meet customer needs, so that the supply chain suppliers focus on their own core business, without having to build a new storage facilities or long-term rental and spent More money, thereby reducing inventory costs, providing more diversified customer service than employers’ companies, improving service quality.

Third-party logistics strategy, the use of external resources for manufacturers, variable logistics costs for the variable costs, and logistics experts can get the experience and logistics technology of new results, to accept high-quality logistics professional services, to provide users with More satisfied with the value-added services. Third-party logistics providers have played a role in connecting suppliers and users, so that both supply and demand to eliminate their own inventory, improve the competitiveness of the supply chain.

Implementation of third-party logistics to be based on the contract, it is a long-term cooperation alliance. The two sides should remember that this is a mutually beneficial, risk-sharing, return to share the third party alliance.

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