You think that INVENTORY MANAGEMENT IS the topic of the past then why the topic is so. I am saying it on the basic of the organization already implemented it, like Toyota and Dell do not have the warehouses rater they work on the principle of just in time inventory or customer pull. Days are gone when inventory of finished goods and raw material was an inseparable part of supply chain management.
There are some reasons while organizations want to almost delete the inventory at their premises.
· Inventory management requires huge investment in term of Warehouses and manpower.
· Suppliers are ready to provide raw material on daily basis and distributor can provide the requirement of commodity on daily basis.
· It is possible as some organization is already implementing it.
· It reduces the spoiling of raw material and finished good as … no need to produce the goods which may not be required by consumer.
· Price of the goods reduces as new price of the product
o New price = Old price – (cost of storage)
· Inventory management requires huge investment in term of Warehouses and manpower.
· Suppliers are ready to provide raw material on daily basis and distributor can provide the requirement of commodity on daily basis.
· It is possible as some organization is already implementing it.
· It reduces the spoiling of raw material and finished good as … no need to produce the goods which may not be required by consumer.
· Price of the goods reduces as new price of the product
o New price = Old price – (cost of storage)
As an organization you should be able to take the risk otherwise will be eliminated…. as competitors will provide it at lower price provided other factors constant. Do you people agree?
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