Organizations of today are facing many business challenges. Operational challenges, in particular, an increase in operating expenses are driving pressure to improve DC Operations. Warehouses of today are facing heavy challenges to do more with less. The need to better understand inventory management is higher today than ever before.
Operating Expense Traps:
- Failure to improve operations in picking and replenishment (think put-aways too)
- Failure to direct inventory management through centralized process
- Failure to understand ideal locations for inventory
Be Flexible:
A little flexibility can go a long way. Be flexible in how you approach both your operations and your way of thinking. The inventory management process of the past might not work in the present day. Technology has changed as has our understanding of operations. In today's business environment where pressure is ever-increasing to improve margins, having additional gains in operating expense through the distribution channel can greatly improve both a company's bottom line, in addition to its ability to be competitive in the market.
The Functionality Challenge:
Ask yourself if you distribution is functioning properly. Most people will see room for improvements either through systems design, technology, or the human element of performing within the system. Depending upon the size of your operation will depend on the opportunity. Trying to quanitify the opportunity through reporting and forecasting will help win over others in management whom are responsible for controlling resources for such an investment.
Reporting:
Using custom reports to monitor inventory levels will help uncover challenges within product management. Reporting systems of today should be able to integrate with ERP and/or accounting systems.
Caption: Are you getting all the performance needed out of your inventory management system? What types of fuctionality is missing?
Draft a Plan:
Looking at how the distribution channel operates is not a five minute, or often a five hour exercise. If you have questions about your organization, consider drafting them on paper. Start looking at the pros and the cons of the current setup. How is the current system functioning well and how is it coming up short? What pain does this cause the organization? If this pain was removed, what is the opportunity. Once you've answered these questions, it might be a good idea to call an internal meeting and start the process.
