Case Study On Southwire

From my research on Southwire’s inventory management, I can indicate that they have a very new technology system that lets them meet the need for vendor-managed inventory. Southwire has developed electronic commerce that helps them manage all facets of their business online especially from ordering and invoicing to inventory management and bar coding. By their electronic commerce also they have lower costs. Southwire developed shorter cycle time, meaning orders can be processed immediately and reduce time lapse. They have reduced inventory levels. Another point that we can indicate is happening in the selected data is that inventory must always be available since Southwire has products that are high-demand by customers. They develop different

It’s cheaper for products to be manufactured in China therefore they are purchasing products for lesser amount and stock the inventory for future sale or present sale for various retailers. Even though the company has to pay freight charges and duty in addition to the labor and material cost it is still much cheaper than manufacturing it in the US and they make a bigger profit and are gaining more sales by stocking the inventory in their own warehouse and always having it available for retailers to purchase from them any time they need it.

Trend

Common trend in Southwire’s inventory management is having single period inventory, which means seasonal demand shifts. For example during winter, the demand for Christmas lights is high and extension cords therefore they preorder the product so that they are in stock or in inventory before winter, maybe a season before winter.

Inventory is not only handling products that are in warehouses and counting how many products you have in stock. Inventory management involves looking at the management perspective as to how the product is made, where the product is made, where the product is stored, and how much material of the product do you need in stock and how organize you keep your products with handling the control of it. How I would apply this inventory management concept and experience at my job is I that I would check where our company products are being made and the cost. I would compare the price from other manufacture places and compare which is more beneficial. We would have to review where we could save more money and reduce employee’s salary. Also I would check for locations as to where facility rent is less or where land cost less to build a warehouse and then distribute our products. Also the location is very important as importing is a big factor therefore you don’t want your warehouse to be so far away having to pay extra to be trucked