Inventory Optimization and Management: A Complete Guide

If you’re currently assessing every step in your business’s supply chain, in order to find ways to optimize your supply chain, it’s well worth taking a look at your business’s inventory optimization and management. Two key areas, which can help you decrease your business’ production costs and can as a result increase your business’ future revenues and profits.

Inventory optimization and management: A complete guide

How to handle your business MRO optimization:

MRO optimization refers to your business’s management of maintenance, repair, and operations. One way to better manage your business’ MRO is to ensure that you can access real-time data about your business’ operations at any given point in time. For example, your business’ maintenance workers such as your mechanics and engineers, should be able to access digital systems which will tell them which machines currently require maintenance. As well as the urgency of each maintenance issue that has been logged. So that the nearest specialist will be able to head to each site to fix your maintenance issues as soon as possible.

Make sure to manage your business’ inventory effectively by hiring a dedicated inventory manager:

For example, it’s not a bad idea to hire an inventory manager, whose primary task will be to continually assess your business’ stock levels. Some of their everyday tasks will include ordering stock before you run out of specific stock and to get rid of inventory that won’t sell and is only taking up valuable room in your business’ stock room. Your inventory manager should be able to provide you with additional business data, such as your business’ fastest-selling new products, which you should order more of, and your business’ slowest selling items. Which you may need to place on a sale or to stop producing. In favor of selling products that are much more likely to fly off the shelves and to make your business a quick profit.

Look for ways to cut costs:

When it comes to assessing your business’ MRO and supply chain. One wise move to make is to look for ways to cut some of your costs. For example, if your business currently uses a freight and shipping company to ship items to your customer’s addresses, you may want to see if another reputable company is able to ship your products for you for a slightly cheaper price than you’re currently paying per shipment. Which will help you decrease your costs and increase your profits. When you assess your business’ processes you shouldn’t have any trouble finding viable ways to cut costs, while still increasing your business’ efficiency.

In conclusion:

So if you are currently in the long process of analyzing each step in your business’s current supply chain in order to discover how you can make changes to your supply chain for the betterment of your business, it’s well worth taking all the inventory management and inventory optimization advice which is listed above seriously.

Infographic created by WSI, a 3pl distribution company

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