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Minimizing Costs and Maximizing Sales with Better Inventory Management

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest newsletter on minimizing costs and maximizing sales with better inventory management. The article offers highlights the challenges faced by companies in improving the inventory management process. The article also offers detailed insights into the top inventory management techniques that can help companies to minimize the loss of sales, reduce storage costs and improve the business productivity. 

Why Should You Improve Purchasing and Inventory Management?

Most companies still dread the word “inventory”. They consider it an arduous task due to the efforts involved in managing it. This makes them overlook the fact that improving the inventory management process is crucial to minimizing costs. Also, the increasing need to satisfy customer demand without overstocking items cannot be fulfilled without streamlining purchasing and inventory management.

The article highlights how improving inventory management process can help companies to maintain proper stocks, minimize dead stock storage, and significantly lower inventory costs. It also highlights how inventory control data can facilitate accurate ordering practices and help companies maintain right-size inventory without wasting resources.

Roadblocks Companies Face While Improving the Inventory Management Process

Inventory management in many categories involves complex systems that comprises of interrelated and interlocking subsystems. The pharmaceutical category is one of them. Companies in the pharmaceutical industry face several challenges, especially when it comes to meeting the demands for new and personalized therapeutics.

To help you better understand challenges, we have outlined the key factors impacting the process. We have explained how lack of accurate information, inadequate facilities to support large inventories, and the inability to provide the right temperature can impact the pharmaceutical companies. Not only this, our experts have also highlighted the best practices to optimize your inventory levels.

Successful Strategies to Improve Purchasing and Inventory Management

Our experience with clients has proved that with better inventory management techniques in place, organizations can improve their cash flow and provide better customer service. They can increase profits, gain significant competitive advantage, and boost brand value by controlling inventory, avoiding spoilage, and reducing storage costs.

This article will help you understand the best techniques adopted by best-in-class companies in the retail category. It highlights how FIFO strategy can help companies to reduce unsellable spoilage and minimize obsolete products in the inventory. Also, it shows how setting par levels can make it easier for companies to systemize the process of ordering

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Improving Inventory Management in Supply Chain to Control Cost of Operations

Improving inventory management in supply chain is the key aspect of any business, and the automotive industry is not an exception. Companies in this industry have focused on improving inventory management to improve operational efficiency over the last few decades. They continuously work to hold inventory at the lowest possible costs by analyzing different cost components. However, there are a few challenges that companies face during inventory management.  Here is a must-read case study for companies seeking to improve their inventory management process.

The Business Problem

The client is one of the known automobile manufacturers with a strong market presence in Europe and the American region. Despite earning annual revenue of over $35 billion, the company was facing predicaments in identifying risks due to supply-demand mismatch. The high value of products and complex product portfolios with multiple options were making it difficult for the company to match supply with real customer demand. Even if they tried moving from one planning period to next, the manufacturer could find only limited opportunity to adjust production. This compelled the client to engage with experienced inventory management specialists and achieve their business objectives.

  • Keep material cost under control to minimize production cost.
  • Facilitate data for short and long term planning and control of inventory.
  • Improve inventory management process to eliminate duplication in ordering or replacing stocks.
  • Ensure the continuous supply of inventories to the production to high vehicle inventory levels of specific configurations.


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Inventory Management: Making Shopping a Smooth Experience for Shoppers and Providing Scope for the Expansion of Businesses

The Business Problem

A European private-label clothing and accessory manufacturer that designs and manufactures its own line of apparels wanted to improve its stock management, store operation, and logistics capabilities to gain a competitive advantage in the market. They sought to implement item-level tagging to every item whether jackets, skirts, or socks to increase the efficiency of their inventory management system. Moreover, they wanted to deploy an inventory management system that could follow the implementation guidelines issued by the European Fashion Council and Textile Regulation.

Managing inventory is imperative for companies to meet the changing demands of customers and increase their revenues. Request a free proposal and access our complete portfolio inventory management solutions today.

Solutions Offered and Client Journey

SpendEdge’s analyst team conducted a comprehensive analysis to optimize workflows and business processes that can help the client reduce human error in inventory management. Based on the analysis, they categorized products that were moving fast and devised inventory management strategies that could capture and share the information of products across all warehouse departments in real time and prevent errors in purchasing, sales, and billing.

The experts at SpendEdge offered an inventory management solution that was capable of saving time and money on store operations. They encoded EPC tags with Serialized  Global Trade Item Numbers to every product at the manufacturing factory to gain real-time information regarding the delivery of items at distribution centres. This tagging allowed the client to inspect the entire carton in a few seconds by simply scanning the label/code. Moreover, with such an effective inventory management system, the inventory accuracy increased substantially and improved the process efficiency of the client.

Want to know how real-time information can help companies to improve their inventory?

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Key Finding & Outcomes

Faster Checkout for Shoppers

The improved inventory management system helped the client witness a noticeable difference in the shopping experience provided to customers. The stores and boutiques equipped with this system immediately read the chosen items and calculated the amount to be paid. This made the shopping experience smoother and faster for both customers and teams.

Provided Scope for Expansion  

The improved inventory management process helped the client to expand their presence in different countries in Europe. Also, it reduced labor costs by making employees more efficient, while maintaining their current payroll. This increased their bottom line and alerted them to update their inventory of certain products after they reach below a designated level. Want to know more about benefits, request for more information.

What is the Role of Inventory Management in the Apparel Industry?

Inventory management plays a crucial role in the apparel industry as the inventory of goods changes frequently.  Companies need to replace outdated fashion pieces with new ones and provide options to their customers on a regular basis that means the change of the inventory’s product mix.

Without an effective inventory management system, implementing changes in the product mix can be difficult and time consuming. Therefore, businesses need a proper inventory management system that can make things the complete process easier and faster.

Wondering how effective inventory system can help companies increase their process efficiency?  Get in touch with our experts today!

cost management

Top Cost Management Techniques that Businesses Shouldn’t Ignore

Cost management is an important process that helps predict the future expenses of a business and determines the success of organizations. It helps companies to coordinate all resources entailing planning, organizing, directing and expenditure of fund to complete a particular project or run a business. Cost management further allows companies to improve business cost efficiency by implementing measures that can aid in cost control.

However, not all businesses are able to implement a cost management plan that can ensure an adequate supply of funds from the right source at the right time to meet their financial needs. They require potent cost management strategies that can efficiently manage available resources available in the form of men, materials, and machines and help them meet their organizational goals.

At SpendEdge, we understand the impact that a strategic cost management plan can have on the growth of a business. Therefore, in this blog, we are highlighting the basic cost management techniques that are critical for any business to stay competitive in the long-term.

Managing cost can help you design effective business strategies. Want to know how? Request a free demo now!

What are cost management techniques?

#1 Minimize overhead cost

Reducing overhead costs is the most basic cost management technique that companies need to adapt to sustain themselves in the long run. Unless the company isn’t making profit straight away, high overhead costs can pose a major problem for the business. The overhead costs occurring due to inventory, bills, salaries can easily be lowered by efficient budget planning, time and inventory management.

#2 Inventory management

Inventories can be a major source of cost and revenue generation for companies offering products. Therefore, companies need to know their inventory requirements to avoid stocking excess inventory. An effective inventory management process can help companies to invest their capital strategically rather than deploying it in the inventory stocks.

Interested to know how inventory management helps in cost control?

Request a free proposal and access our portfolio of cost management solutions.

#3 Global outsourcing

Outsourcing is one such cost control avenue that companies necessarily need to explore. If there are certain aspects of a project that can be delivered by someone else at better prices, then outsourcing can be considered as one of the most useful cost management techniques. Outsourcing projects globally can further help in cost management for businesses.

#4 Capitalize on technology

Capitalizing on technology is a strategic decision that helps businesses to streamline their business operations productively. It allows start-ups and developing businesses to compete with much larger comapnies in the industry. Moreover, technology can be implemented according to the needs of the organization.

Want to know how you can implement these cost management strategies for the benefit of your organization? Get in touch with our experts today!


Supply Chain Best Practices to Drive Business Success

The importance of supply chain management in today’s competitive market landscape cannot be undermined. With the expectations of both shareholders and consumers soaring, the collective capability, technology, resources, and scale of most supply chains have become insufficient.

Moreover, it can be said that the exponential increase in business complexities is one of the biggest challenges facing the supply chain. This surge in the complexity has been further fueled by challenges such as supply chain globalization, acquisition pace, new retail channels (i.e. omnichannel), regulations, and a rapid increase in the pace and complexity of new product introductions. This has forced companies to adopt supply chain best practices and renew their supply chain approach.

At SpendEdge, we understand that adopting supply chain best practices requires both knowledge and capabilities. Therefore, our team of experts has highlighted the supply chain best practices that companies can adopt to increase value creation across the supply chain.

Want to know how supply chain best practices can help you manage complexities? Get in touch with our experts and implement supply chain best practices for your organization. 

Supply chain best practices for companies

#1 Align supply chain responsibilities

Often, the decision-making power is divided among different people in organizations. This not only slows down the operations but also makes it difficult for companies to make quick decisions. Aligning supply chain responsibilities will ensure better supply chain management and greater efficiency for organizations.

#2 Utilize technologies

Companies integrate too many software to increase their efficiency without analyzing the needs of their organization. Instead, companies should analyze the efficacy of their processes that need improvement and then implement technologies that can address those needs. This is one of the supply chain best practices that can help companies to make better utilization of their supply chain.

#3 Devise strategic sourcing strategy

Strategic sourcing is imperative for supply management. It ensures the availability of supplies, lowers total cost, streamlines processes, and increases responsiveness to customers’ changing needs. Companies looking to implement supply chain best practices should focus on strategic sourcing rather than considering it the sole responsibility of the purchasing department.

Interested in devising a strategic sourcing strategy?

Request a free proposal and know how our experts can help you to devise state of the art sourcing strategies.

#4 Consider value over price

It is never advisable for companies to cut costs at every point of time, especially if they are aiming to achieve long term business goals. At times, they need to put value over price to retain their customers, keep business flowing, and establish themselves as a reliable supply chain partner. This requires companies to implement supply chain best practices and achieve better profits in the long run.

#5 Better inventory management

Inventory management is one of the supply chain best practices that companies are intending to improve upon in the years to come. It helps companies to substantially improve the bottom line and minimize their working capital. Even the top-notch companies are paying attention to inventory at the highest levels as it could represent over 50% of the cost of an item.

#6 Taking social initiatives

Reducing a supply chain’s carbon footprint is no more a choice for companies. It is one of those supply chain best practices that necessarily needs to be practiced. The reason being, buyers and consumers take it into consideration while choosing products or services. Any company not having productive social responsibility programs risks criticism from one or the other sources.

Implementing supply chain best practices is pivotal to increase the efficiency of the global supply chain. To know how your organization can benefit from these practices, request a free demo from our experts now!


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SpendEdge’s Inventory Management Helped a Pharmaceutical Supplier Maintain Accurate Inventory Levels and Minimize Cost of Inventory

With the growing concerns pertaining to healthcare treatments, the pharmaceutical suppliers have witnessed a promising growth over the past few years. Moreover, the pharma companies are expected to witness considerable growth, owing to an ageing population, changing lifestyles, and unhealthy eating habits. However, with these rising customer expectations, the commercial environment is getting harsher with customers looking for cost constraints in the pharmaceutical products offered. Moreover, inventory management is becoming a major concern for the companies in the pharmaceutical industry. While the pharma companies can’t risk drug shortages due to lack of inventory visibility, they also never want to incur the costs of overstock that would negatively impact productivity and the patient experience. Thus, to address these challenges and enhance production capabilities, organizations are looking to devise an inventory management solution.

With the help of a reliable inventory management system, organizations can effectively keep track of their stock manually. In addition, the inventory management system helps businesses restock certain items, the amount of purchase, and the prices to pay.


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Taking a Step Forward towards Better Inventory Management of Pharmaceutical Supplies

Inventory management in the pharmaceutical industry involves complex systems that consist of interrelated and interlocking subsystems. Changes made in one part of the inventory management system have both anticipated and unanticipated consequences in the other part of the system. In recent years, we have witnessed several pathbreaking discoveries in the pharmaceutical industry’s inventory management. However, even small mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary expenses or worse, prescription errors that endanger patient health. Furthermore, the advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, particularly in meeting the demands for new and personalized therapeutics. 

Inventory related challenges affecting pharmaceutical companies

Inventory management

Inventory management in global health pharmaceutical delivery supply chain involves complex processes which include quantification and replenishment decisions. However, due to the lack of accurate information, there is often uncertainty that results in a negative impact on the company’s inventory management system.

Dependency on human resources

The lack of qualified individuals to fill the logistics-related positions in pharmaceutical companies is being recognized as a threat that results in heavy workload and ineffective role performance. Aside from this, it also leaves key responsibilities that include making supply chain calculations and decisions unattended. On the other hand, along with the utilization of accessible and user-friendly IT systems, pressure on HR capacity can be alleviated by hiring a dynamic team of responsible and trained people equipped with enough knowledge and skills.

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Order management

Demand information or data about the availability of products in the different levels of the supply chain are the primary decision-making factors in order management. This translates to the fact that lack of accurate information would make order management to solely rely on assumptions and experience. Consequently, orders may arrive incomplete, inaccurate or delayed, which can negatively affect product availability and overall inventory management of pharmaceutical supplies.

Warehouse management

Most warehouses do not possess adequate facilities to support large inventories. Relying on third-party logistics might not always be effective due to poor organization and not enough designated area for different functions such as receiving, shipping and storage for both damaged and expired products. In the long run, such unfavorable conditions may ultimately lead to discrepancies in logistics and inaccuracies in inventory management.

Temperature control

Factors such as environmental conditions, particularly temperature could greatly affect drug potency. Hence, failure to provide the right temperature during storage and shipment of pharmaceutical products may result in major product wastage. Refrigerated containers or storage rooms might be available in the warehouses. However, there are chances of gaps in ensuring and monitoring of temperature level. This makes cold chain difficult to maintain.

Shipment visibility

Once the manufacturer sends out the product for delivery, it becomes difficult to track its status at different levels of the supply chain. Besides, the exact date when the products will arrive becomes unknown to both the manufacturer and the recipient.

Shake-off inventory management troubles with informed decisions from our pharmaceutical industry experts. Get in touch!

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Overcoming pharmaceutical inventory management challenges

Some of the top pharmaceutical companies are already doing a stellar job at inventory management, but almost everyone has some room for improvement. Here are some best practices for companies in the pharmaceutical industry to optimize their inventory levels:

Get an accurate count

Pharmaceutical companies can’t manage what they don’t measure. Also, a visual scan of the shelves often proves insufficient to provide the sort of accuracy needed. One of the best solutions to combat this is to conduct an annual physical inventory, supported by a computerized inventory system, and monitored by a designated employee.

Maximize the value of inventory management system

Most computerized inventory management systems lack a perpetual inventory management model. Such systems help in keeping tabs on all products in stock and automatically places an order for more product needed to maintain a certain inventory level. The company will need to adjust the parameters depending on the demand. This ensures that the order threshold and amount match the new future demand. Even a computerized system needs to be monitored and maintained for accuracy.

Shed excess inventory

Pharmaceutical inventory loses value as it ages. So, carrying excess inventory amplifies the risk of losing thousands of dollars on expired, unsaleable products. A pharmaceutical company can’t sell products once they pass their expiration date. Although demand can fluctuate from day to day, a week’s worth of inventory should be more than enough to accommodate even unusual spikes in daily demand.

With a capable supply chain and inventory management process in place, there is no looking back for companies in the pharmaceutical industry. But are you there yet? If not, SpendEdge is here to help. Request a free proposal now!

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A Beginners Guide to Vendor Management and Ways to Tackle the Key Challenges

Vendor management today is not just about comparing prices and finding the supplier with the cheapest price for a product or service, it is ultimately about building better vendor relationships that will ultimately benefit both the parties. Vendor management process allows organizations to control costs, strengthen service, and reduce risk throughout outsourcing the processes to vendors while extracting the most value from the investment.

Vendor management process

For successful vendor management process, companies must take a strategic approach to build and maintain relationships with their best vendors. Good suppliers are hard to come by, so it’s important to nurture the relationships with the suppliers that companies don’t want to lose. Vendor management process is typically broken down into four main steps:

Establish business goals

Define the business goals clearly and be as specific as possible. In order to successfully undertake vendor management, you need to know exactly what it is that you’re trying to achieve. Vendor management becomes easier where there are pre- defined performance parameters to compare.

Choose the best vendor

Companies will have to weigh the pros and cons of different vendors. Some questions to ask here include: Does the vendor have extensive experience? Are they stable? Have they worked in similar environments? Do they have standardized processes and provide economies of scale?

Manage vendors

This is the routine activity of monitoring performance and output. It’s the best way to make sure that the terms of the contract are being fulfilled. This step involves extensive communication to offer approvals, disapprovals, feedback, changes, and everything that is necessary to deepen the relationship.

Consistently meet goals

Companies aim to consistently meet their goals over the course of their relationship with the vendor. This means managing the vendor regularly to better influence and meet performance objectives on a regular basis.

Whether you’re managing 10 vendors or 1,000, SpendEdge can help you radically simplify how you track, manage, and pay your vendors. Request a demo to know more.

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5 Keys to Evaluate Your Inventory Management Process for Biomedical Devices

With the emerging need to delicately balance the medical devices’ security and patient safety, medical device manufacturers are facing numerous challenges like reducing costs, better inventory management, improving efficiency, and allocating resources effectively. The need for inventory management solutions is increasing for medical devices manufacturers owing to the surge in demand for better healthcare products.

Poor inventory management or disconnected systems can lead to operational inefficiency and issues with order fulfillment, which rises concurrently with an increase in the demand. Additionally, it can also result in wastage of time, space, and can increase the cost of operations. Therefore, it is important for the manufacturers of medical devices to understand that creating a feasible model for inventory management is central to the sustainability of their business.

At SpendEdge, we understand the impact that an effective inventory management solution can have on your business. And to help companies manufacturing medical devices in the changing landscape of the medical industry, our team of experts has highlighted five ways to examine their inventory management process and improve their efficiency.


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