Among key indicators of a company’s dashboard, the higher management must determine its customer service objectives by class and/or by family of products. These service objectives are part and parcel of the strategic data that sets your business apart.
Service wise, these objectives will take into account customer needs and the market positioning desired by the company in terms of service as well as its capacity to invest in its inventory to reach its goals.
It must be noted that the higher the service objectives are, the more the inventory level must be increased to guarantee the level of service. The proper software can assist the company in linking its service objectives with the inventory required.
A trustworthy computer system dealing in inventory management should compute efficiently the parameters of inventory management in relation to the service objectives. A good system will establish the level of buffer stock required in relation to the optimal service desired by the company. The buffer stock should normally also take into account delivery schedules as well as the forecast of the demand or demand variability.
To achieve a sustainable level of service, it is imperative to establish variables such as the minimums and maximums on hand that will not only be dynamic but also correlate with the desired service goals.
Interestingly, there are companies today that offer services that provide dynamic calculations of the parameters of inventory management that consist in updating the Min Max according to the service objectives sought by way of dashboards, via the WEB, through a set of indicators that follow the evolution of inventory management. The IMAFS system also offers exception reports on a pay-as-you-go basis for inventory management. It is undeniable that an inventory management system will increase a company’s profitability, thus guaranteeing a return on its investment.
In conclusion, we have a better understanding of how inventory management and optimization of customer service go hand in hand.
Robert Lamarre