Did you know that inventory management errors top the list of 20 supply chain risks that concern original equipment manufacturers (OEMs) the most?
According to research by EPS News, which provides the latest on electronics purchasing and the supply chain, the list was “gleaned from the SEC filings and annual reports of 20 of the world’s biggest electronic OEMs in North America, Europe and Asia.”
And the main challenge these companies faced was “the industry’s apparent inability to achieve demand-supply equilibrium. This typically results from inaccurate market forecasts and the direct effects these have on procurement, inventory, facility and production planning.” These companies include giants like Apple, Dell, Google and Microsoft.
Errors in inventory management topped the list. “Excess and Obsolete Inventory” came in at number 7 and number 8 was “Inaccurate Forecasts.”
If inventory management problems are seen as a weak link in supply chain flow for the electronics industry, it just goes to show how essential inventory management is for all levels of players within the supply chain of any industry. That includes manufacturers, distributors, and retailers.
At Blue Chip, we’re all about providing inventory management solutions for a wide variety of clients throughout the country and abroad, and that includes OEMs in any industry.
For over 46 years we have never compromised on our commitment to provide accurate inventory counts. And we’re always improving our services by using leading-edge technology to improve inventory results.
Clearly, as big electronic OEMs are finding out, inventory management is essential to a strong supply chain. Without an effective inventory management strategy in place, inaccuracies can lead to a serious “domino effect” setting off a supply chain reaction that could compromise everything from warehouse storage to supply and demand, ultimately affecting the consumer.