Optimizing your inventory control has never been more important, particularly for OEMs. This is because inventory control issues today, more than ever, can lead to many problems. Staying ahead of these problems is what can make or break a business. But in order to stay ahead of these issues, we must first be able to recognize them. In this blog, we have outlined the key problems that arise when inventory control is not optimized and have also offered a solution for avoiding them.
When a product is not in stock, it can lead to lost sales, dissatisfied shoppers, and diminished store loyalty. It can also jeopardize marketing efforts and obstruct sales planning since automakers have to also delay their production of vehicles.
- Overstocking leading to waste
Overestimating how much of a product is needed is equally damaging and can result in too much useless inventory. This leads to lost money and wasted production time.
When demand exceeds supply, automakers are left waiting for a product that does not make them happy and interferes with their production schedule. Needless to say, this is not a good situation for an OEM to be in.
- Quality issues
Every part of a vehicle needs to meet high levels of quality. The risk of a part failing on a vehicle falls directly on the shoulders of the part maker. During the life of a program (a vehicle-related project), engineering specs can result in several important considerations in a part’s bill of material. For example, lower subassemblies and materials can change, resulting in the need to keep better controls on inventory.
Inventory optimization ensures that all these issues are avoided and that the right amount of inventory required to meet demand and keep logistics costs low is always available.
How can you achieve such a result? Technology, technology, technology.
SHEA’s SMART Auto solution digitizes the warehouse, as well as tracking and data awareness on parts and materials. This means that the chances of a part being too available (creating waste) or not available enough (creating low quality and lack of productivity) is extremely reduced.
SMART Auto leverages the ability to use technology to digitally count, monitor, and track inventory movements to ensure your inventory control is always optimized. And that keeps you, and most importantly your customers, happy and content. To learn more about our many solutions ranging from the aerospace industry to high technology, visit us at https://sheaglobal.com.