Looking for Long-Term Wins: How Inventory on Demand Makes a Predictable and Consistent Impact on Supply Chain Profitability

Successful supply chain executives look for long-term wins­—adjustments to operational efficiencies that prove impactful and profitable from Day 1 of implementation—and Inventory On Demand (IOD) is an innovative new solution to a long-time supply chain challenge.

Moving a customer’s order from Point A to Point B as quickly and as hassle-free as possible has always been the name of the game, and distance to destination is only one of the understandably difficult and often expensive hurdles to overcome along the way. Fortunately, third-party inventory ownership partners have emerged to help align your supply chain operations in a predictable, profitable and streamlined way.

Digital, Direct, and Fast—Modern Consumers Demand Efficiency

E-commerce and the digital storefront have staked claim to a growing portion of traditional brick and mortar business, and twenty-first century consumers demand an elevated level of immediacy and satisfaction as they order products and affect company reputations online. In a November 2016 article, Medium contributor Ismat Siddiqui may not call out inventory on demand by name, but he identifies the concept when forecasting supply chain challenges in ecommerce.

Siddiqui lists logistics constraints, inventory management, and supplier sourcing as primary problems supply chains will continue to face in an increasingly digital consumer landscape. It’s simply not cost effective for a business to expedite and consolidate raw goods from manufacturers overseas, have a company warehouse in every city, and keep products stocked in bulk at all times. Ensuring customers get their order on time every time is ineffective and expensive. Instead, smart supply chain executives continue to look for those cost-effective long-term wins to consistently provide the level of service customers have come to expect.

The Inventory on Demand Secret Sauce

Providing continuous product availability and an established-yet-flexible infrastructure is the secret to inventory on demand’s success in optimizing supply chain productivity and profitability. Companies eliminate costly sourcing, transportation, and stocking inefficiencies by transferring title of goods to a third party for end-to-end inventory management. Product consolidations, transportation mode shifts, streamlined overseas operations through regional providers, multiple warehouse locations—the potential supply chain optimizations afforded by partnering with trustworthy third-party IOD servicers— are unlimited.

Inventory on demand takes the expensive headache and unpredictable legwork out of managing your inventory around the globe by minimizing supply chain touchpoints. Once you tap into the IOD infrastructure, it becomes possible to source, buy, and deliver goods when and where customers place their order. From Point A to Point B has never been a more predictable, profitable, or reliable distance to cover for supply chains thanks to inventory on demand.

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