Almost every business must keep track of inventory at all times. Many businesses need to figure out their overall costs, losses, and profit margins. Some businesses, particularly small businesses, store their inventory in third-party storage facilities away from their physical location. A supply chain consultant is an expert in vendor and inventory management who can help with the company’s inventory management.
When inventory and vendor management becomes a problem, or simply takes more time than the company wants to devote, a supply chain consultant may be hired. The supply chain consultant will either take over management of the vendor relationship or simply advise the company on how to improve the overall process. A consultant typically has years of experience managing multiple vendors, managing freight costs for both incoming and outgoing shipments, and procuring and negotiating prices. These people may even be members of nationally recognized organizations in their area, which keep them informed about the latest supply chain management practices. Within these organizations, certification courses are frequently offered with the goal of constantly improving and updating individuals’ logistics and supply chain knowledge.
A supply chain consultant’s most valuable skill is typically the ability to quickly assess inventory costs and implement plans to reduce their impact. This could entail consolidating vendors into a small number in order to increase purchase volumes, as well as leveraging economies of scale to reduce purchase prices and freight on incoming and outgoing parts. These consultants are frequently experts in vendor consolidation and have the qualifications to determine which inventory management method is best suited to the company’s needs. Typically, supply chain experts try to match an inventory management strategy to the company’s market, industry, customers, and business philosophy. They give businesses the tools they need to reduce their inventory carrying costs month to month.
A supply chain consultant may have a degree in logistics or supply chain management or simply have enough years of experience in the field to be considered an expert. Inventory is typically a large part of many companies’ operational costs, and it must be managed in the most cost-effective way possible in order to see profits. The consultant should have the necessary experience to assess the situation and come up with quick solutions.