Nventory Management Essay Example | Topics and Well Written Essays - 1750 words

Nventory Management - Essay Example il industry has its core competency in the efficient supply chain system; it has developed a highly integrated and IT enabled logistics structure so that the demand and supply of its offerings is efficiently managed. Once the level of any product reaches a pre-determined level, the IT system automatically places an order at the supplier location. The supplier ensures that the goods are delivered within the agreed time period so that the problem of shortage is completely eliminated. Similarly, UPS, the leading postal carrier service provider ensures that it implements the direct-to-store approach effectively. In this approach, the step of distribution center is completely eliminated and the inventory is moved directly from the manufacturer to the consumer; there is no need of warehousing the stock and the holding and warehousing costs are completely eradicated from the supply chain (Muller, 2011). With the help of IT-enabled supply chain frameworks, the supplier-manufacturer relations have strengthened and the orders are fulfilled on time with shorter lead times and excellent level of the operational efficiency is attained. In order to ensure that the appropriate inventory management system is in place, the companies have made it mandatory that the best inventory management technique is implemented. For instance, Continental Airlines has ensured that it has the most efficient Materials Resource Planning (MRP) system within its business operations so that the in-flight services related to food and beverages are efficiently performed. As a result, its cost has reduced by US$40 million on yearly basis. With the help of this system, the inventory is adequately managed and it has been able to enhance its levels of proficiency and customer expectation by a significant amount (Wild, 2012). The Internet-enabled links between the partners of supply chain (inbound logistics, operations, outbound logistics and distribution) have enhanced the collaboration and coordination