If you are a business that gets its raw materials shipped from overseas, you definitely understand the importance of inventory management. There is no debate in saying that effective inventory management is crucial for staying competitive and profitable. However, inventory management is a gruesome and time-demanding task and despite the availability of cutting-edge technologies, many enterprises, both small and large still struggle to manage their inventories efficiently.
The lack of expert in-house inventory management specialists is the premier reason why many enterprises fail to properly take on critical aspects that include ordering, restocking, storing, and inventory forecasting. This is why businesses have turned to 3PL (3rd Party Logistics) for inventory management.
Professional supply chain companies provide inventory management services that are backed with experience and cutting-edge technologies that help businesses prosper.
Here are some benefits of outsourcing your inventory management:
Many 3PL provide you with real-time counts. This can help you track your manufacturing and sales in real-time, and spot potential losses and leakages. This can also help you prepare for the future and predict if your current stock is optimized for future needs.
With the help of professional consultancy, you’ll be able to produce and deliver the right quantity of products that can easily cater to your customer base rather than overproduction or underproduction that can cause your troubles.
The upfront cost to establish an efficient inventory management department may require hundreds and thousands of dollars. For startups and companies with low revenue, putting up an inventory management infrastructure may mean comprising on other areas such as marketing, or packaging, etc.
3PL partners have already invested in infrastructure development that provides the most cost-effective solutions. Moreover, they have expertise, knowledge and the skill to optimize transportation, reduce operational costs, and provide better inventory management.
Partnering up with a 3PL also provides you with peace of mind as they take all necessary measures to ensure the safety of your inventory. This is a big advantage and a wise move to make your supply chains more resilient and risk-free.
They provide insurance coverage and also estimate the financial impact of possible losses and develop mitigation contingency plans against events such as theft and natural disasters.
It’s hard for a small business to be good at everything. There are always certain strengths and weaknesses and if inventory management is an area where you seem to be not doing well, let the experts handle the depart. This will let you focus on your core competencies and utilize your strengths to the fullest level.
Inventory Management is a time-draining task and by outsourcing, you can utilize those precious hours on other important aspects such as marketing, customer support, PR, and innovating your products and services. Focus on your core competencies and make your company more productive.
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