The following range of logistics resources is commonly used by organisations to optimise logistics operations.
Inventory Management Systems
The management of inventory involves trading off the level of inventory held to achieve the required customer service levels, against the costs of holding inventory. Holding inventory represents the largest investment in assets for many organisations. Customers expect high levels of product availability but organisations must keep inventory investment minimal to control costs. Achieving low inventory usually results in lower ordering quantities which can incur additional costs.
Therefore, it is important for an organisation to calculate the most economic balance between these costs. below is a list which forms the basis of an effective inventory management system:
- Provides real-time location of your inventory
- Plans inventory replenishment and automate re-ordering
- Tracks age and expiry dates to avoid obsolete stock
- Tracks peaks and troughs in demand to provide reliable forecasting
- Manages returns effectively
- Utilises barcoding or RFID systems to automate as many activities as possible, reducing manual intervention and potential errors
- Calculates Economic Ordering Quantities (EOQ) which consider the trade-off between inventory holding costs and the cost of ordering in smaller quantities