| Making a retail supply chain efficient enough to make | | | | If they're not, it can quite often be the case that |
| it in today's hyper-competitive retail environment is | | | | somebody, somewhere along the line will take it upon |
| very important. Any manager in a retail operation | | | | themselves to order goods that might not really be |
| with responsibility for ordering inventory needs to | | | | required at the end-point. |
| make sure that the inventory is there but that it isn't | | | | Think about it; the chances are good that there are |
| clogging up the supply chain or taking up space in a | | | | at least 10 managers or supervisors along a typical |
| warehouse. This costs money, and the point should | | | | chain, each with independent 'purchase/no purchase' |
| be to save money these days. | | | | decision-making authority. Each works in a different |
| Today, a retailer selling any sort of good needs to | | | | functional unit, and each ' while well-meaning ' can |
| take steps to ensure that there are several different | | | | quickly cause problems. Getting them communicating |
| channels set up to ensure that those goods are | | | | with each other efficiently will be the first step. |
| obtained when needed and that customers have | | | | The key concept in such supply management is to |
| access to them. If a retailer can't do this, customers | | | | make sure that all managers and supervisors in every |
| today quickly walk because they certainly have more | | | | functional unit along the way that has responsibility |
| than a few options for buying goods that they didn't | | | | for inventory procurement and management is |
| have just a generation ago. | | | | operating from the same playbook, so to speak. The |
| This should be looked upon as an unacceptable | | | | first thing to do is to figure out who along the chain |
| condition by any manager in a retail operation, let | | | | has such responsibilities, of course, which can be |
| alone those managers with inventory control | | | | difficult but doable. |
| responsibility. The solution isn't to stock huge | | | | It's vital that retail managers today look at their retail |
| numbers of a good in a warehouse, though. What's | | | | supply and distribution chain and quickly make it work |
| really required is understanding how to take the | | | | for them rather than the other way around. Reducing |
| supply chain, reconfigure it and make it perform | | | | inventory control and storage costs is a quick way |
| efficiently along all points. | | | | for a retailer to save significant money in a relatively |
| Retailers today have a myriad of challenges | | | | short amount of time. Any retailer can be affected |
| confronting them when it comes to changing over | | | | when there's too much inventory laying around or |
| from traditional warehouse-inventory structures to | | | | not enough of it, for a fact. Controlling it will be |
| far more economical and responsive supply chain | | | | extremely crucial if success is to be ensured. |
| management concepts that help them keep an | | | | Effectively managing your retail supply chain is a |
| optimal inventory level that is not only responsive but | | | | critical component to running a healthy business. From |
| also cost-effective. | | | | logistics to inventory management, the supply chain is |
| It's going to be very important that all people with | | | | the lifeline of many business operations. Learning how |
| supply input authority along the chain be on board | | | | to employ a lean supply chain ensures the staying |
| with a single, integrated supply management program. | | | | power of your company. |