Companies hand over entire inventory raw materials , components and finished goods to the third party merely became a new direction for different industries.
Finished goods inventory, these are totally relied on a chain of supply, they might have various storing points such as national, regional and state levels. Providing all operations by single suppliers is a challenging task, whereas using various suppliers or individually different suppliers can handle functions efficiently.
These kinds of conditions are managed by the company’s system and in-parallel by server provider’s system. Inventory management, where control becomes a damning condition. Especially when multiple servers and providers are involved.
To make sure inventory control is maintained across all locations. These are following crucial aspects will have drastic change:
- Initiate and figure operational functions for service providers: Halt standard Operating procedure, which deals with warehouse operations and inventory process and also documentation process.
Especially facilities are provided for third party providers. Its critical to have a cohesion process, besides defined management , authorisation and also in advancement structural operations fails. When inventory operations we’re not in control.
- Initiating inventory view ability at every location through MIS report : Halt all the list of reports and MIS data to all locations and make sure they are mailed to a central desk for daily review to the inventory team. These reports are analysed daily by inventory team leaders from all locations. If an unorganised then, resolve them and get updated to management.
- The inventory desk should be reported regarding the stock count program from all various places. This program should be initiated daily. Daily stock count must exhibit location accuracy, stock accuracy and also transaction summary of the day.
- Monthly examine and inventory count have to be executed in all locations and insisted for complete cohesion.
- Based on the transaction density and location of transaction quarterly inventory wall-to wall count, half yearly and annual wall -to -wall count should be executed.
- Central inventory team is responsible for safeguarding reports on all reviews and controlling inventories at all locations.
- inventory reuniting- This induces reuniting physical inventory with the system inventory at a third party logistic site. Then reuniting third party logistics system stock’s with company system stocks.
- Regular inspection on major sites and presentation during physical stock examination on quarterly and half yearly is very crucial.
- Track entire process and make sure training and re-training is executed consistently at site, that implies assimilating process oriented culture.
Inventory can be defined as making money for a company. Third party logistic vendors handle them, its baseless to say processing to be able to control and maintain inventory health.