Inventory is of critical and constant importance to any business that deals with physical goods. As a result most businesses will need to know their overall costs, losses and profit margins in order to ensure they are operating effectively.
A lot of smaller businesses house their inventory away from their physical location in storage facilities owned by someone else, so they can benefit from a supply chain consultant (or a logisitics consultant) who is an expert in vendor and inventory management so can assist with management of the company’s externally stored goods.
When inventory and/or vendor management causes problems or just becomes too time-consuming, a lot of companies will turn to a supply chain consultant for help. The consultant can either take over the management and handling of the storage vendor or just advise the business on how to improve the way they do things.
Who are the consultants?
Most supply chain consultants have many years of experience in managing multiple vendors, dealing with the management of freight costs for shipments, procurement and even price negotiation. Many of them are members of nationally recognised organisations and certified or possessed of any number of a range of qualifications in the field to show their continued commitment to improving and updating their logistics and supply chain knowledge over time.
What can they offer you?
The most important skill that a supply chain consultant can offer a company is the ability to rapidly assess the costs of an inventory and implement plans to reduce them. This can take a variety of forms from reducing vendor ranges to increasing purchase volumes to take advantages of economies of scale in price and shipping costs. A lot of supply chain and logistics consultants are experts in vendor consolidation which is invaluable to many businesses large and small, and a consultant that also has the credentials to decide which inventory management practice will work best to optimise the supply chain for their client will be in very high demand.
Supply chain and logistics consultants usually draw from a range of best practices to match up an inventory management approach that will nicely marry up with their client company’s market, industry, customers and general business philosophy, which provides the company with a suite of tools to lower their ongoing inventory costs, known as carrying charges, and assist in increasing their overall profitability.
If you’re looking for a highly experienced supply chain consultancy firm with proven expertise in a wide variety of sectors, get in touch with the logistics consultants at Gideon Hillman for logistics, supply chain, warehousing and inventory management and more.