Strategies for Effective Inventory Management
Inventory management is one of the most important aspect that is related to the betterment of the organization (Elsayed, 2015). It is one of the most important aspect that has contributed to the betterment of the organization. Strategies that must be incorporated by Hallenstein Brothers is stated in the study. Strategies related to procurement is similarly important as it contributes to the improvement of the organization (Lonsdale et al., 2019). It is associated with providing the better solution to the operations and this has been one of the most important aspect that has contributed to the betterment of the organization. Hallenstein Brothers are one of the organization that is associated with dealing in the clothing in New Zealand. The study will be stating about the aspects related to inventory management and procurement strategies of the company.
- Postponement:It is the strategy to increase the possibility of the benefits that will be contributing to the betterment of the organisation. This is one of the process that can delay the present investment into a product until there is demand for that particular product. Hallenstein Brothers being one of the clothing retailers does incorporates the strategies that are related to the postponement. There are activities that are associated with the postponement such as labelling, packaging, assembly, manufacturing and postponements that are related to time (Carbonara & Pellegrino, 2018). This is one of the strategies that can contribute to the betterment of the organization by minimizing the production costs. This strategy can also help the organization in stocking of the cloths that will be contributing to the enhancement of the organization (Simão, Gonçalves & Rodriguez, 2016). This technique help the company to modify their products at the very last moments to incorporate the much needed changes. This is operation can impact the changes in the customer demand and this can incorporate the changes according to the demand of the customer. Incorporating this strategy influences the activities to reduce the costs and increases the time
- JIT inventory management:This is one of the strategies that can contribute to minimizing the stock holding time. This is the option that will be contributing to the betterment of the organization (Wild, 2017). This inventory system for Hallenstein Brothers helps in operating the inventory in a very low level. This will be helpful in minimizing the stocking cost (Shin, Ennis & Spurlin, 2015). This is one of the easiest way for Hallenstein Brothers to incorporate the aspects that will be contributing to enhancing the inventory management models. JIT can help in enhancing the delivery systems. This is one of the most important aspect that can contribute to the company while they are using the regional distribution centres for their distribution of the clothing products. This can minimize the costs and incorporate the aspects that will be contributing to the betterment of the organization (Elsayed & Wahba, 2016). This is one of the most efficient ways that can be used by Hallenstein Brothers for their distribution. This is one of the aspect that will be contributing to the enhancement of the organization that can contribute to the betterment of the process of distribution of the organization by minimizing the stock waiting time and reducing the costs related to the distribution of the cloths. However, it is important to consider the levels of stock as the risk of getting out of stock is one of the most important aspect that is associated with Just in Time inventory management. It is important for Hallenstein Brothers to consider the dangers that are associated with JIT as it requires heavily efficient planning to implement. Hallenstein Brothers can be involved in the process of developing an inventory system that requires less space. JIT inventory system can be financially beneficial as well because it is one of the most important aspect that is related to the operations of the retailer.
- Safety stock inventory: Safety stock is the additional stock that has been kept for reducing the risk of out of stock. This helps in providing a buffer stock to manage the inventory efficiently by keeping adequate amount of stock for the organization that will be contributing to enhance the delivery and maintain the customer loyalty (Yadollahi, Aghezzaf & Raa, 2017). Customers are the major factor that influences the organisation to support the inflow of the cash. Hallenstein Brothers associated with retailing in the sector of clothing can be influenced by the risk of getting out of stock. Safety stock inventory can help the company to keep the adequate amount of stock until the replenishment of the inventory (Guerriero, Miglionico & Olivito, 2019). This is one of the major aspects that are related to the improvement of the processes that are related to the distribution of the inventory. It is one of the most important aspects that have contributed in providing a support to the inventory of Hallenstein Brothers. This method helps the organization in indulging into the activities that are associated with the progress of managing the inventory with the buffer to safeguard the inventory from the problem of getting out of stock (Radasanu, 2016). Incorporating this method Hallenstein Brothers can have an advantage in the unforeseen events of the organization. This is one of the most important aspect that has contributed to the safety of the organization from the unpredicted variation in the demand and supply of the market for Hallenstein Brothers. Hallenstein Brothers can incorporate the strategy to compensate the variation in the forecast of the market demand. However, this process can contribute in increasing the period that is associated with stockholding time of the retailer.
- Supplier Optimisation: Hallenstein Brothers being one of the retailers associated with clothing, does have to rely on the suppliers. Suppliers are one of the major factor that are contributing to the enhancement of the procurement process (Trivedi et al., 2017). Supplier optimization projects the philosophy of determining the aspects that are contributing to the rationalization of the suppliers. It is one of the most influential factor that is concerning with leaning the supply chain by reducing the static processes (Trivedi et al., 2017). The suppliers that are capable and meets the required standards are one of the most desirable state for the organization. Hallenstein being one of the most important organizations that are associated with retailing it becomes important to consider the strategies to incorporate the factors that will be contributing to the enhancement of the procurement. Procurement being one of the major functions of the supply chain it is one of the important part for the company to deal with suppliers and indulge into a professional relationship (Trivedi et al., 2017). It is important to maintain a relationship with the suppliers as it makes the process of the procurement easy and smooth. Hallenstein Brothers can help in maintaining such relations by incorporating the optimizations and maintaining the relationship with the suppliers. This has enabled in controlling the quality of the goods for the retailers. Optimization of the suppliers enables the company to have a control over the costs that is associated with the procurement of the materials. However, there are difficulties associated with this model of procurement such as, excessive regulation for the suppliers. Still this is one of the most important aspect that is related to the procurement of the materials. Optimizing the suppliers, effects the supply chain management to be increase the efficiency that will be contributing to efficient supply chain.
- Vendor Development: This is one of the major operations that can help Hallenstein Brothers in maintaining the sourcing strategic. This helps to improve the value received from the vendor. Hallenstein Brothers are one of the retailer that are associated with retailer to get involved in the process of improving the performance of the suppliers (Dalvi & Kant, 2016). This is one of the activities that are associated with encouraging the suppliers by offering incentives. Hallenstein Brothers can incorporate the plans that are associated with developing the aspects to encourage the vendors for enhancing their performance. This will ultimately contribute to enhancing the process of procurement. The development of the plan can help the organization getting indulged in the process of developing an efficient vendor network (Dalvi & Kant, 2016). This procedure to enhance the process of procurement can help the organization in having a competitive advantage in the market. Vendor development can benefit the collaboration between the customer and the supplier. This process can help the organization in getting involved in developing efficient vendors by utilizing activities that are required to meet the standards. The development of the vendors can benefit the organization by indulging the vendors in a fierce competition. Vendor development can affect the suppliers to be more responsive (Dalvi & Kant, 2016). This can enable the operations to be more efficient for Hallenstein Brothers. This can help the organization to incorporate the vendors to be more precise along with contributing to improved quality and reliability of the materials. This is one of the process that can help the procurement to be incorporated with lesser lead time. This is one of the activities that can contribute to reducing the sourcing related activities. Teaching the vendors’ team along with providing them with incentives as well as rewards enables the situation to be more favorable for the Hallenstein Brothers.
Conclusion
To summarize the study it can be stated that managing the inventory and procurement is an important part for the supply chain of the organization. It enables the organization to be more efficient along with providing them with the competitive advantage.
Reference
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Trivedi, A., Chauhan, A., Singh, S. P., & Kaur, H. (2017). A multi-objective integer linear program to integrate supplier selection and order allocation with market demand in a supply chain. International Journal of Procurement Management, 10(3), 335-359.
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Yadollahi, E., Aghezzaf, E. H., & Raa, B. (2017). Managing inventory and service levels in a safety stock?based inventory routing system with stochastic retailer demands. Applied Stochastic Models in Business and Industry, 33(4), 369-381.
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