Minimize Risk, Reduce Costs Through Inventory Management
Inventory management is key to improving visibility and flow within the warehouse
Understanding exactly what is inside of the warehouse and where it is located can help manufacturers speed fulfillment, cut costs and improve customer service.
Effective inventory management allows suppliers to maintain the right balance of stock in the warehouse. It also helps suppliers to replenish when necessary and ensure product availability when and where it is needed without having to maintain costly excess back-up or buffer inventory.
Using Inventory Management Technology to Improve Flow
Penske has a proven history of using its technology to track the flow of inventory through and around the warehouse, monitor product velocity and provide advanced notice of arrivals. As inventory flows through a warehouse, Penske works with customers to implement the optimal flow of the goods within their operations. This includes directing it to a storage location, managing orders, guiding warehouse personnel to complete the order, and recording the shipment of that material both accurately and timely.
The cost of carrying excess inventory is significant. Penske worked closely with one global component manufacturer to improve visibility. This enabled the manufacturer to reduce its inventory buffer and ultimately free up space and capital. Penske created standardized processes, which ensure inventory and the production line keep moving. Even slight variations in inventory result in supply chain disruptions, so it is crucial to accurately track each step in the process.
Creating Process Improvement
At another large tier 1 automotive industry supplier, Penske improved inventory management through the tracking and picking of products. By making it easier for dock workers to pick freight in a certain sequence, Penske and the manufacturer reduced errors.
Having accurate information on the quantity of available inventory and minimizing excess inventory also drives accuracy, because people within the warehouse aren't dealing with as much inventory.
Increasing Visibility Enhances Operations
Penske worked closely with one manufacturing customer to reduce inventory, improve their receiving area and drive productivity through internal process improvement. Increasing visibility and having specific checks and balances in place allowed the customer to better track inventory and reduce shrink, which led to improved profits.
Greater visibility and data analysis allow customers to improve operations on both a strategic and tactical level.