How does inventory management systems improve supplier relations?
How does inventory management systems improve supplier relations?
How do retail stores, more specifically, inventory management systems improve supplier relations? I know that inventory management systems improves supplier intimacy with extranet/website that helps connect suppliers to retailers but what are some other examples? Thank you.
Tags: improve, inventory, Management, relations, supplier, systems
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1 Comment for How does inventory management systems improve supplier relations?
1. Jim Gagel | November 20th, 2010 at 7:45 pm
The answer to this question is two-fold. First and more importantly, your inventory management system should minimize the costs associated with receiving, handling, and holding inventory. This fact alone should justify development of you inventory management system. Secondly, it will improve relations with your suppliers by reducing the frequency of reordering product. Depending on the cost, demand, and the lead time of the item, the frequency of reorder should be reflected properly. Ideally, the reorder point of an item should occur 6 to 2 times a year with no worries regarding the expediting of an order.
I facilitated the transition to a more modern management system 3 years ago at my company and the results to our suppliers, our customers, and our bottom line have been exceptional. The idea of a good inventory management system is to collect and record as much useful information as possible. Analyzing this data will enable you to make the most optimal decisions per item and thus drastically reduce inventory costs while improving customer satisfaction.
If you have any further questions, feel free to contact me. I’ll help you out as much as I can.
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