Given the fast changing nature of the modern economy, arriving at a perfect solution to the question of when and how much to order, if it occurs, is probably accidental. But reconciling the need for high inventory to satisfy customer availability expectations, and low inventory to minimise the considerable carrying costs, is vital.
Inventory management is not a purely financial question – it touches on issues such as replenishment lead times, carrying costs, asset management, valuation, future price forecasting, physical space requirements, defects, deterioration, obsolescence and the growing issue, especially in e-commerce of returns.
At Damco we have developed global experience, in many industry sectors, across all these issues, and our Inventory Management and Control services regularly help firms find the right balance for sustained profitability.
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Macro-economic changes and shifts in trade patterns have their impact on global supply chains. They provide opportunities as well as challenges. Let’s have a closer look at some developments in logistics that are directly or indirectly caused by changes in trade patterns, in GDP growth or in customer behaviour.
If you are involved in international logistics, it is likely that you already work with one or more third-party logistics providers (3PLs) or are considering to purchase 3PL services in the near future. In either case it is critical that you select the right company for the job.