For a business, inventory locks up substantial capital whether as raw materials or finished goods. Many times, the amount of capital locked in inventory is so substantial that managing inventory flow efficiently becomes highly critical to the survival of the business. This makes defining, documenting and aligning inventory policies throughout the entire supply chain crucial. Yet, adopting general inventory policies or defining them without analysing business requirements is very risky for a business and can produce results such as dead stock or frequent stock outs, high storage cost, puzzling accessibility, complicated warehouse processes, and increased TAT. Results such as these accumulate and have a negative impact on the business. In short, inventory policies are effective and beneficial for any business only when they are fulfilling business requirements. Successful business owners in Australia understand that experienced and established 3PL providers can assist them to analyse their supply chain requirements, and that they have the required knowledge to assist them define inventory policies and align them to their business needs.
Read on to learn more on inventory policies and how the experience and knowledge of 3PL providers can assist you in aligning your inventory policies to your business needs.