Inventory positioning plays a major role in managing inventory both within the supply chain and at the location where it is physically held. This is why companies are keen to control and define inventory positioning accurately, which contributes to improving the speed and quality of work. And through inventory positioning, you will be able to access any inventory when it is needed at any time, and by following the appropriate strategy for it, e-commerce companies will be able to know where to store their inventory and follow up on orders properly. In this article, we will show you all the details about inventory positioning, and how it can help you to fulfill orders appropriately.
What Is Inventory Positioning?
Inventory positioning is the process in which the selective location of various items in warehouses within production lines is determined.
Through which the items in their shelves are accurately allocated, which enhances the improvement of delivery speed and order picking.
It also contributes to evaluating safety stocks and minimizing supply and demand swings that can occur unexpectedly.
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Inventory Positioning Explained
For a better understanding of the meaning of inventory positioning, It involves an accurate explanation of the inventory position in the supply chain through its various stages.
Which ensures that inventory flows through the supply chain as efficiently as possible.
It also contributes to clarifying the location or geographical location of the items in the warehouses, which facilitates the transportation process and meeting customer requests accurately and in the shortest possible time.
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How to Execute Inventory Positioning
As for how to implement inventory positioning this needs to be the use of appropriate inventory positioning strategy.
Through which the congruence between business economics and customer needs and expectations is achieved, and this can be done through the use of any of the following methods:
1. The push supply chain method
The push supply chain method is appropriate in part because of how well the company itself can predict demand, and in this method it will need to keep inventory close to customers.
2. The pull supply chain method
As for the pull supply chain method, it will be more related to managing customer and supplier relationships, in which the company will need to provide the appropriate quantities of materials and production inputs.
3. push-pull supply chain
A push-pull supply chain would be the best way to streamline operations, but it would also need the company itself to be able to forecast demand and determine geographic locations.
And through those methods that we have explained, the company will choose the appropriate method for it according to the nature of its work, and then implement the appropriate inventory positioning for it.
This is after determining the optimal geographical location for it in order to maintain its stock, and it must also provide the best transportation methods that facilitate shipping and delivery operations.
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Manage Inventory Positioning With Software
Modern software can help you to carry out and manage inventory positioning effectively and efficiently through appropriate use and analysis of data.
Through which you will be able to better follow and control inventory position as well as improve its operations and order planning in real time.
This is in a way that guarantees you accurate inventory locations, enabling you to meet orders and pick quickly and ideally.
diggipacks can assist you in providing all the software that facilitates and supports your work, and helps you to improve order fulfillment.
