How Well Are You Managing Your Inventory?

Selling goods in multiple channels means dealing with multi-channel inventory planning. It may at first sound exaggerated, but how well you plan and manage your inventory often determines your customer service level and profits. Right since the multichannel distribution was in its infancy, to a situation called NOW where it is the very need of the product-based companies, the guru mantra of inventory management has been just one: Streamlining and Managing Inventory.


To explain the point mentioned above, let us take the scenario of Company A and Company B, both of which are let us say, in Home Appliance industry. Both A and B would have multiple distribution centers, and the objective of both would remain the same- shorten the delivery time to the customer and earn maximum profit.


While A recognizes the importance of managing inventory in the following ways, it stresses on keeping an automated track on its inventory:

• Cost of storage space


• Cost of stock movement


• Cost of time spent managing the inventory


• Any cost of damaged or stolen inventory


• Type and quantity of stock in-hand


• Type and quantity of stock lying at the secondary and tertiary level


• Type and quantity of stock-out and over-stock

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