In logistics management, the advanced stock technique consists of storing at the customer’s premises but it is the supplier who remains the owner of the goods. This logistics solution has the advantage to optimize the supply chain. We tell you more in the rest of our article.
Do you know what advanced inventory is used for in merchandise management?
Advanced stocks as a logistics solution make it possible to store goods nearby or directly at customers’ premises. This is an interesting strategic technique when you want to store your goods in the different geographical areas of your customers.
The supplier remains the owner of the goods
Also called remote stocks, their particularity is that the goods physically stored near the customer remain the property of the supplier. At least until the customer uses it, in part or in full. The supplier takes care of the financing and management of these stocks. This solution, therefore, requires the supplier and the customer to establish a table partnership relationship. A relationship that includes both parties negotiating a balance in load sharing.
Enjoy the benefits of advanced inventory and optimize your supply chain!
As we said above, advanced stocks do not stay with the supplier (owner). They are not deleted either but “deported” to another warehouse, either that of the customer or in a space close to the latter. This allows the provider to optimize its own storage space.
Proximity makes you win on several levels
The major advantage of storing your goods in this way: is proximity! If you choose to store your products close to your customers, you win on several levels:
- Speed of goods flow and supply
- Reactivity in the movements of logistics actions
- Supply chain fluidity
- And finally, operational performance!
Your customers may be in geographies far from each other, they will have products at their fingertips with advanced stocks. As a result, this logistics strategy avoids customer stock-outs as well as understocking and over-stocking. For example, it is all the more interesting to deliver goods later to commercial customers such as small shops, large distribution, etc.
In addition, there is a reduction in the environmental impact related to logistics
Storing your goods nearby reduces the number of miles trucks travel between the warehouse and the customer. And yes, less transport for better respect for the environment.
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