University:
University of Alberta
Course:
MARK 201 | Introduction to Marketing
Academic year:

2024
Views:

206

Pages:

2
Author:

Neena N.

INVENTORY MANAGEMENT The methodical process of locating, storing, and marketing inventory, including components and completed commodities, is known as inventory management. The proper stock, at the appropriate levels, in the right location, at the right time, and at the right cost and price is what's meant by inventory management in the business world. OBJECTIVES OF INVENTORY MANAGEMENT ● ● ● ● ● ● To minimize carrying costs To maintain the optimal level of investment in inventories To guarantee a continuous supply of materials to facilitate uninterrupted production To maintain sufficient stocks of raw materials during short-supply To maintain sufficient finished goods for efficient customer service To minimize carrying costs. MULTI-CHANNEL INVENTORY MANAGEMENT The method by which firms track and account for orders from numerous sales sources on inventory that is maintained at multiple locations, such as marketplaces, ecommerce, retail, and wholesale, is called multi-channel inventory management (sometimes referred to as multi-source inventory). These days, managing inventories across several channels and suppliers is considered to be difficult. The way the data is disseminated throughout the company is a crucial aspect of this process, as numerous departments use inventory data for various purposes. The majority of retailers concur that inventory is the core of their online business operations, and being able to handle it effectively across a variety of channels is now necessary to keep an internal competitive advantage that translates into a positive external consumer experience. For example ● Placed an online order and picked up in-store. ● A customer visits yourwebsite.com and discovers the product they desire. ● They see that they may either pay for it now and pick it up in person tomorrow morning (the store is 15 minutes away) or they can order it online and have it transported to their house, which will take 5 business days. They decide to pick it up at the shop. ● Order placed and payment received. ● The next day, the consumer picks up their order. Let's look at what's going on behind the scenes to make that happen. 1. As a customer browses the e-commerce website, the inventory levels are updated. They don't notice any change since it never runs out of stock. 2. The buyer sees how long shipment would take from the closest warehouse to reach their home after entering a zip code. Additionally, users view the number of units in stock at the closest store that carries the desired goods. 3. After verifying their purchase, an employee at the store receives a message to put the product away, and both the overall inventory and the retail inventory are updated. 4. The worker confirms that the client picked up the item they had purchased. MULTI CHANNEL INVENTORY - FACTORS ● ● ● ● Number of distribution channels number of sales channels number of systems in use number of interfaces between those systems