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How to Maintain Inventory Control in the Interlining Industry
Written by Global Supply Chain Management Team
Friday, 10 December 2010, 11:30
Under the current fierce competition, suppliers in the interlining industry are making every effort to lower the costs for their products, which in turn become one of the core competences of the company. Of all aspects that threat to a business success, the most influential one is, perhaps, the waste. This is especially true in the interlining industry. Waste causes a majority part of problems for the manufacturing process for interlining products such as woven interlining, non-woven interlining and fusible interlining. It thus leads to higher costs to both the interlining manufacturers and the customers. Problems of waste not only lead to high cost of the products, but also create harms to the environment. It takes more energy and time to solve the problems of waste.
There are a variety ways to couple with waste, such as quality control and strategic planning on manufacturing. One of the ways to reduce the impact by waste is inventory control, from a supply chain management point of view. The key to success for the manufacturers in the interlining industry is to implement inventory control. The interlining suppliers need to practice and learn how to maintain a good level of inventory of their products like woven interlining, non-woven interlining and fusible interlining. Too large of little on inventory will destroy the business. The level of inventory must be adjusted to meet the business’s needs and be changed with the seasonal demands. Problems with inventory are fatal for an interlining supplier. You will lose customers if you don’t have the right interlining products for your customer when they want it. On the contrary, if you hold a high level of inventory for a particular interlining product than you normally sell, it will cost you a lot of money. Either too much or too little, the inventory control becomes a huge problem and will result in failure of your business.
For an interlining supplier, it is better to practice inventory control. Here are a few factors that might affect the inventory control in the interlining industry.
1. Understand all about the cost.
When we talk about cost, it is not as easy as the production cost only. A comprehensive understanding on cost of interlining products like woven interlining, non-woven interlining and fusible interlining is essential and primary. It is critical to know the cost of holding the inventory of a particular interlining product: this cost is the sum of production cost and any other associated cost of the inventory. In addition, the cost on new materials ordering should be also taken into account, as well as the cost of stock shortage. Always bear in mind the heavy impact by the short of inventory from a customer’s view. You should consider the quantity, frequency and cost in an order for raw materials of interlining products. All the cost planning related to the inventory control is a key factor to the success of a interlining supplier.
2. Know the dynamic change in inventory control.
An inventory checklist is always important to an interlining supplier. This checklist will help interlining suppliers understand how many raw materials they need to orders for the interlining products such as woven interlining, non-woven interlining and fusible interlining. However, the level of inventory to be ordered is not the same in each ordering period. You should pay attention to the market change in the interlining industry. Never assume that you should always order the same level of inventory each time. The order quantity for inventory control must be associated with your business development accordingly.
3. Pay attention to the selling products.
Careful records on the products sold are essential. These records must include the total sales figure and the hot sales products. The sales figures on interlining products such as woven interlining, non-woven interlining and fusible interlining will help you calculate a reliable enough reorder point for the materials. On the calculation of reorder points for inventory control, you should take the sales pattern into account. All this information comes from the sales records on interlining products.
4. Make a strategic plan on inventory control.
A strategic plan on inventory control on interlining products like woven interlining, non-woven interlining and fusible interlining is a key to a successful interlining business. This strategic plan should be able to couple with the emergencies in the supply chain, and in turn help the interlining suppliers for woven interlining, non-woven interlining and fusible interlining to maximize the profitability. The holding of safety stock in the strategic plan on inventory control is fatal to the business. The safety stock will enables us to fill the inventory gap by materials order delay and unexpected sales. With the help of safety stock, the interlining suppliers not only maintain a high profitability, but also win customer’s satisfaction.
The above factors that impact the inventory control are only a starting point to the practice. Tools and action plans on inventory control should be applied to achieve the goal of balancing inventory status and maximizing the profitability.
Last Updated on Friday, 10 December 2010, 15:45