Success in any business premise is attributed to well-planned and coordinated management. With the advancement in technology, several systems have been devised to enhance the management of products flow in the business. The inventory management system is one of the major systems in place which has assisted many business firms in running their daily activities. It is a system which controls the flow of inventory and stock, through the use of this system, the firm can note the number of stocks sold, where to store and what products need to be bought to replenish the stock. It is hence vital for every company to have a management system that clearly shows stocks sold, stock stored and the stock that has ran out, as such the inventory research system is a system that has helped many companies do that.
Walmart is one of the companies which has maximized on the use of an inventory management system; this has enabled them to compete with large firms like Amazon and Apple. It is worth to note that its success and competitiveness is attributed to an inventory system in place. Thus it's wise to say that the inventory management system is the nerve centre to operations management, (Render, Heizer, & griffin, 1997). Inventory management system has enabled Walmart to grow and be globally competitive.
Through the use of this system, Walmart can improve their vendor relationship. Through this system, Walmart vendors can note what they have supplied to Walmart thus in case of any disparity; it will be easier for them to confirm the data from the system thus enhancing their good relationship, (Render & Heizer, 1997).
Transparency and tracking of the flow of goods have been made accessible, (Luiz Correa, Ellram, Jose Scavarda & Cooper, 2007) With the use of software interlinked with the system, the company management can see the actual number of items which have been sold by the firm hence easy to determine which stock need to be added. Transparency is also at the peak with the use of the system; this is because all the records are captured in the system. Walmart uses barcode readers in taking the number of goods in the warehouse and when products are being sold barcode reader which is interlinked with the computer thus keeping the record.
Integration. nventory system can be interlinked with other systems like the financial system, (Luiz et al., 2007). The system has made it easy for Walmart to determine their financial returns easily and know the volume of goods sold.
In conclusion, the inventory management system has eased the management of stock in various firms. This system is majorly utilized by firms with financial muscles since its costly to install this system.
Heizer, J., Griffin, P., & Render, B.(1997) Operations management (pp. 518-520). Luiz Correa,
H., Ellram, L., Jose Scavarda, A., & Cooper, M. (2007). An operations management view of the services and goods offering mix. International Journal Of Operations & Production Management, 27(5), 444-463. doi: 10.1108/01443570710742357
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