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How do inventory management systems work?

inventory management systemsEver stood in a middle of a supermarket and tried to think beyond what you see before you? How do supermarkets and retail outlets make sure all these products are controlled, recorded, stocked etc. The truth is we take this mammoth logistic task for granted, it’s only when we find our favourite items are ‘out of stock’ do we really take notice. Effective and detailed Inventory management is the magic behind this phenomenon.

One Major supermarket may average millions of customers per week, each buying various amounts of products. The products they buy vary at different times in the year. To make sure the consumer is always satisfied having an inventory management system in place is of paramount importance. Retailers must record items they sell, mainly through an epos system, to keep track. Based on these reports, inventory managers have techniques in place to forecast stock requirements and so begins the logistical operation of transporting goods to the stores from inventories worth Billions of pounds.

Inventory management

This is just scratching the surface of inventory management - the raw basics. Inventory management is a massively complex proccess, with factors such as the seasonal effect, emergency stock, lead time etc to consider. This is where the experience and knowledge of a reputable supply chain manager is brought in to analyse how this proccess can be streamlined through inventory optimisation.

It is not just the large supermarket chains that need to have inventory management systems in place, but also smaller branches. Huge cost savings can be made by making sure the supply chain process is a streamlined as possible through inventory optimisation, so its definitely worth getting the expert advice from supply chain consultants to see how your business can really benefit from professional inventory management.

Gideon Hillman are trusted supply chain consultants who can provide you with the latest techniques to help you reduce overheads and encourage cost savings for your business. For more information about inventory management, please visit http://www.hillman-consulting.co.uk/ or call 01926 430 883 today. 

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