Greetings! If you own a business and aim to enhance your stock management, you will find this guide tailored for you. We will demonstrate how to maintain the appropriate products in the correct locations through a technique known as multi-echelon inventory management.
No need to fret—it may seem complex, but we simplify it for you!
Inventory signifies the goods or stock maintained by your company.
Management involves overseeing and handling it.
So, this means keeping track of products at many places, like:
The manufacturing plant where it’s produced
The storage facility where it’s kept
The retail outlet where it’s purchased
This system assists companies in ensuring the correct quantity of inventory is available at the appropriate location and moment.
It helps you:
Gain clear insights into your supply chain
Reduce costs on surplus inventory
Enhance customer satisfaction by preventing delays
Multi-echelon inventory management ensures equilibrium, preventing stockouts or excess inventory. Particularly effective for companies operating multiple stores or locations.
Why Indian SMEs Should Try Multi-Echelon Inventory #
Small and Medium Enterprises (SMEs) in India are expanding. Numerous businesses are now selling online and require improved methods for swift and secure goods transportation.
Here’s how this system helps Indian SMEs:
Lower Costs: You only keep what you need. No waste.
Smoother Delivery: You can fill orders quickly from the nearest warehouse.
Fast Reaction: If demand changes, you can supply products faster.
Example:
A clothing maker in Delhi sells across India. With multi-echelon inventory, they store winter jackets in North India and cotton clothes in South India. This cuts delivery time and saves money on transport.
