Inventories are items that we produce or purchase order to vendor. Inventory management is critical to customer service, so that the items are available at all times when customers want to purchase. But on the other hand, it can also cause high costs in the action. Many organizations began to see the problems they are looking for ways to reduce the cost of storing inventory in the supply chain system to manage inventory efficiently. It is causing a balance between product and customer satisfaction level, such as to respond to the customer's order (order fill rates), but it also risks caused by inventory management could keep the stock is too much and that there are not items that customers want to buy really make the liquidity of financial corruption. Or, Alternatively, the loss of revenue from the items that require no sales. Can be implemented to aid in data analysis and coordination unit, the system's supply chain efficiencies.
Disposal of dead stock items, items that are not moving for over 6 months and slow moving items, items that are sold will probably be late once a month or two months at a time, which reduces management costs, as these groups are helping to reduce costs in the warehouse (warehousing) to.Item in stock (handling), transport (transportation), such as moving or non-moving slowly wastes storage area and in all the shipping cost per item when the purchase order from the customer may not send money. Compared with the proportion the quantity per order shipping fee if using third party logistics are charged according to the number of boxes delivered by the order and the path previously defined.