Fasteners Supply

Four Reasons Why You Need a Supplier Managed Inventory in Your Business

Supplier-managed inventory is a concept that may seem simple at first, but it can be very useful in your supply chain operations. It’s the idea that once your raw materials arrive at the end of their journey, you should not just trust them to go to the back of the line and wait for their turn, but rather have them lined up and waiting for your orders. This blog post will discuss four reasons why you need the inventory.

Define your peak order point

The idea with supplier-managed inventory is to have a system that allows you to keep detailed track of each item in your supply chain. When you better handle when your products are most needed, you can plan and order more of these products to ensure a solid supply chain operation.

Assign a Codename to Each Peak Order Point

Rather than labeling every single dropshipping order with a specific name, assign a codename to each peak order point that you utilize. This will help you keep track of all the orders and can help you avoid double-counting. This codename system works well when multiple teams are handling different regions of your business. Having a central point of contact allows you to keep track of everything related to that region of your business.

Record the Details of Each Drop Shipping Order

When you receive a drop shipping order, record the following information: Order type: Dropshipping orders are categorized based on the method of payment used. Nature of the goods: Here, you will record the nature of the goods ordered. Delivery date: You should record the actual date the goods should be delivered.

Create a General Stock Management System for All Your Inventory

This system tracks all your goods and will help you keep track of how much of each type you have in stock and how much you are willing to ship to each customer at any given time. By using a general stock management system, you will quickly see which items need to be in the warehouse. You can take care of these more quickly while maintaining a certain amount of inventory in case of sudden demand.

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