Inventory Management Techniques – Just in Time Inventory Method
Inventory Management Techniques
Just in Time Inventory Method
For starters, what is it? In a nutshell, the Just in Time inventory method is a strategy that value-added re-sellers, integrators, and manufacturers use to decrease inventory holding costs and improve efficiency.
We recently spoke with a long-time dealer about how the Just in Time inventory method has changed his business. As we discussed the pros and cons, he brought up an interesting story. One day, he purchased equipment for a specific customer using the Just in Time Inventory method. A couple weeks after the routine installation, the dealer received a call from the client. After retrieving the vendor purchase order, he was reminded that the receiver model installed was a step up from the one that had been quoted. Since the designed functionality was different from what was promised to the client, the dealer had to roll a truck to check out the difference in the client’s use and the product’s functionality. Unfortunately, it turned out that even though the surround sound receiver was working correctly, the upgrade sold by the dealer to the client would not work.
There are several lessons learned on inventory management techniques in this case. First, if the dealer had initially identified the upgraded receiver in its inventory, the first truck roll would not have been necessary. Knowing the specific model that was delivered and installed is vital to knowing what to communicate with the client during the initial phone call. Next, it is critical to know what other equipment was installed at the client location. Through install notes, you must know what possible conflicts might result. It is great to see rapid improvements and enhancements in electronics, yet all of these fast changes come with the constant potential to function differently, or simply be unavailable from the time of the proposal was agreed to till the beginning of the client experience. It is unrealistic to memorize changes and feature enhancements on every piece of technology you sell.
In most cases, clients don’t care about the technology, they care about the experience they paid for. It is the integrator’s job to make the technology match the user experience requested. There is nothing worse then getting an upgrade that takes away or negatively impacts the intended user experience.
TRXio is an inventory management solution for any size organization and business. TRXio helps you organize inventory, create consistency and minimize costs while providing you accurate and real-time reports, analytics and data on the status and item detail of your products, inventory and equipment.
Other Inventory Management Techniques: