One of the most important parts of running a business that deals with physical goods is inventory management. Having a critical role in the supply chain, it determines the overall costs, losses and profit margins. A well-managed inventory ensures the smooth inflow of raw material and outflow of finished products, which is essential for the success of any business. But when inventory becomes too large or complicated and starts taking a huge amount of time and resources, many businesses turn to supply chain consultants for help.
A supply chain consultant is an expert in inventory and vendor management. He may provide advice to your business or take over the entire management of your inventory and vendors, depending upon how badly you need help. He usually has many years of experience in analyzing your supply chain and implementing solutions. He is an expert in managing inventory, dealing with vendors, handling domestic and international freight and procuring goods. He may also have a degree in logistics or supply chain management and one or more certifications in his field of work.
Supply chain consultants analyse the supply chain
The most desirable skill of a supply chain consultant is his ability to analyse the supply chain, develop a solution and implement the same. They can immediately assess the inventory costs, find strengths and weaknesses of current practices, pinpoint bottlenecks in the supply chain, and offer customized solutions aimed at reducing operational costs. The solutions might involve taking actions such as reducing the number of vendors or changing suppliers to lower the cost of raw materials.
Supply chain consultants are also experts in vendor consolidation, which involves using only one vendor for one product to reduce the need to deal with several vendors. They also have the ability (acquired through education and years of experience) to point out which inventory management practice best suits your company’s requirements. The end result is an efficient vendor and inventory management system that eliminates bottlenecks and oversupply, cuts costs, reduces losses and increases profit.
A supply chain consultant takes care of your inventory and vendor management
The old practice of keeping supplies to last for months as it is too costly. Therefore, businesses want to maintain a small inventory where supplies keep coming in and flowing out as needed. This approach to inventory management is especially beneficial to small businesses that do not have their own storage facilities. But it also has its pitfalls. For example, if your supplies are delayed, you may have to shut down your business until they arrive. These wouldn’t be an issue with a supply chain consultant in charge of your inventory and vendor management.
Another critical area where a supply chain consultant can help your company is cash flow. By ensuring the smooth delivery of your products to your customers, he makes sure that you get paid on time so that you can continue to buy your supplies on time, which is essential for any business. In the lack of an efficient cash flow, many companies with good sales have been forced to shut down. A supply chain consultant makes sure that won’t happen to you.
Supply chain consultants have access to the right resources
Finally, when choosing supply chain consultants, it is important to ensure that they have access to the right network, people and resources. Third party logistics providers are often best suited to provide you with the best services. 3PL Links is a Toronto-based company has a long and successful track record of providing supply chain consultancy and reducing the operational of costs of customer businesses.