Designing an efficient system for counting and maintaining a stock of inventory items has long been a daunting task for many business owners. The old method of cataloging by part or item number has all but disappeared with the proliferation of electronic catalogs and the use of computer software and web-based ordering/tracking systems. Inventory management is necessary for owners who want to maintain a warehousing service for quick turnaround times to ensure total customer satisfaction. An item on a managed inventory list must be maintained to avoid shortages of frequently used items. Even when using an inventory management system, you will still experience occasional shortages. To succeed in today's fast-paced and highly competitive environment, companies must have the necessary parts in stock or have reliable suppliers to meet customer demands at a moment's notice. Regardless, stores need to have a practical and efficient way to manage inventory to stay in business and satisfy their customers. The most efficient way to achieve this is through the use of a Just-In-Time (JIT) inventory management system. The service provided by Cardinal Health is an example of this type of JIT system that allows the right amount of goods to arrive in the right place at the right time. Efficient inventory management is essential to providing a high level of customer service. The ability to ship inventory on schedule and receive the right amount of product where needed in a timely manner is one of the primary factors that helps determine customer satisfaction. Consumers don't like waiting in line, coming back later, or shopping somewhere where the product is often out of stock. These are the types of problems that lead a customer to cross the street to look for a particular product somewhere else. Furthermore, efficient inventory management leads to a more cost-efficient operation (Reid Ch 12, 2002). The goal is to keep inventory on shelves for as little time as possible. This prevents a large percentage of capital from being tied up in inventories. Through the use of automation and computerized systems, companies are able to control their inventory based on real-time needs rather than historical projections. This helps reduce the guesswork about how much inventory to store and when to store it. Regardless... middle of paper... out without the hassle of long lines or confusion. This is directly related to how inventory is managed throughout the supply chain. Just-In-Time inventory management is an attempt to create the perfect inventory system. The idea of bringing the right product to the right place at the right time is at the heart of this system. While it's not always perfect, the goal is to identify problems and always strive to improve them. This can only be implemented through the use of automation and technology. Cardinal Health has integrated portable technology, the wireless Web, the Internet and many other cutting-edge technologies to provide just this type of service. They provide flexible, relatively simple inventory management and give the consumer the power to control inventory based on what is actually needed rather than historical patterns or guesswork. REFERENCES Frederick, James (2003). The updated distribution network increases the supply chain and inventory capacity. Drug Store News, page 15.Reid & Sanders (2002). Independent demand inventory management. Operations Management, Chapter 7.
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