Inventory Management: An Integrated, Disciplined Process ...
These few extra weeks of lead time can make a big difference in final fill rate and overstock results.
5. Distribution Center (DC): Communication in this critical relationship should be daily. Steady information flow on item specs, receipts, back-orders, quality control issues and returns is the way to ensure that inventory can flow expeditiously, both inbound and outbound through the DC.
Many companies’ DCs may not be located within convenient distance from the inventory control personnel; however, whenever I’ve had inventory management personnel tour DCs and meet the staff, inventory management approaches the position aware of ways to improve DC efficiencies — a win-win.
6. Contact Center: Similar to the DC experience, whenever inventory management personnel can listen to inbound order calls and customer service calls, the experience will bring a heightened awareness of the contact center’s relationship to inventory management.
Inventory management then becomes the first point of contact for the contact center to resolve inventory issues. By default, the contact center should alert inventory management of potentially larger inventory-related issues.
Daily Communication is Required
Other departments have occasional cross-departmental communication, but effective inventory management requires near-daily communication with all.
Inventory management certainly can make or break a company. Constant communication and understanding the key role inventory management can have on bottom line results is the start. Measuring key metrics — or key performance indicators — is necessary to ensure the company stays on track.
George Mollo is president of GJM Associates Inc., a consulting firm that focuses on catalog merchandising operations. Reach him at (845) 627-0788 or email@example.com.