With the ever-changing retail landscape, inventory management has risen to the top of major company agendas. Today, many business leaders exercise a nationwide, multi-location warehousing model for their supply chain management processes. However, this is not often the most effective choice for businesses looking to scale and increase efficiency. Many companies are considering a flexible, single node inventory model instead.
This strategy is reinforced by Harvard’s study, which found that a centralized inventory model creates the most cost-effective route to retail for suppliers, delivering improved control by eliminating scattered inventory and redundant costs at multiple warehouses across the country.
With the right inventory strategy in place, suppliers can quickly pivot to respond to changes in consumer trends and seasonal demands and accelerate forecasting for the future.
This inventory management strategy helps suppliers win, while simultaneously enabling:
• Accelerated operational productivity and cost effectiveness.
• Stronger delivery performance.
• Increased adaptability to changes in market conditions and consumer trends.
• Greater ability to scale business operations.
Reduce redundancies and increase in-stocks
For consumer packaged goods (CPG) suppliers, the supply chain network is the backbone of your business and the core of your product’s lifecycle – from raw materials to retailer distribution centers and into the hands of satisfied customers. But that process can become complex and redundant both in cost and operations without the right inventory strategy. A centralized inventory model produces economies of scale to streamline supply chain operations, decreasing lead times, eliminating redundancies and improving in-stocks levels at retail.
Pivot faster and meet demand
Real-time inventory tracking from a centralized location delivers the data-driven insights suppliers need to pivot faster. With access to real-time, on-demand inventory tracking capabilities through advanced analytics platforms, suppliers are armed with critical insights that empower better decision-making across the supply chain. From manufacturing facilities to retailer distribution centers, a supplier that leverages a one-inventory strategy and data-driven insights is enabled to accelerate transparency, improve efficiencies, drive overall performance and meet demand.
Drive your retail supply chain forward
Create your most effective inventory management strategy today. Partner with an asset-based third-party logistics (3PL) provider that has the capability to control your inventory from one strategic region to avoid redundancies, reduce overall operational costs and achieve a more consistent product flow throughout the supply chain.