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Inventory Management

Infographics Series: Who Needs Inventory Management?

November 28, 2017


In this post, we talk about the second infographic “Who Needs Inventory Management?“And there’s a bonus – It provides us with a real example of how an inventory management system can come into use. So, let’s dig in!

In simple words, Inventory Management is important for those who collaborate to do business. Collaboration can be with any of your partners – internal or external. Be it your supplier, manufacturer, distributor or perhaps even your employees.

Now, let’s take a look at the use case of an Inventory Management System in the sales cycle. The example here is about your company ‘Tower Mobile’ that sells cellular transmission towers globally.

1.   Order Completion

Let’s say that your number one sales rep receives an order for 200 towers from Indonesia. If your office is located in USA and your manufacturer in China, you need to employ a collaborative system to ensure timely completion of orders. For the production of units, you need to provide the drawings and fabrication instructions as inventory items to the plant in China. It is important to track all the individual parts used in assembly as well as the complete tower. Do this by attaching barcodes or RFID tags to these items.

2.   Order Fulfillment

With an inventory management system, you can get full visibility into your supply chain. Know when the manufacturer finishes making the towers and ships them out from China, all in real-time. When the order is delivered to your storage area in Indonesia, scan them into your inventory and update it. Doing so will update your inventory levels and tell you what has arrived and what is still en-route. From your central location, send out all the towers to their appropriate sites as per the client’s requests and make sure to keep track of their movement.

3.   Post-Sale Services

This is a stage where your company can save even more money. Dispatch your teams at the right time with the right equipment to install the towers. Moreover, when your system gives you the necessary data to make effective decisions, you are able to complete the order in time and ensure customer’s satisfaction.

In conclusion, if you need to work with others to manage your business, you can benefit from an IMS. The example we discussed should provide you with a perspective as to how they work. In fact, it also shows how you can improve visibility and transparency in your supply chain. Moving on in this series, we will consider the pros and cons of a system that can provide your business the boost it needs.

Interested to learn more about Inventory Management? Click here to see how Clear Spider can help.


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