Due to the fierce competition of the car audio industry in the global market, every manufacturer is going to great lengths to maintain the competitive edge of its own. One of the effective ways to develop the competitive edge is by managing the inventory movement effectively and efficiently. Understanding the basic concepts of inventory flow for car stereo products will contribute to the effective management, and finally build competitive advantages.
The inventory flow for car stereo products is finally the ownership transfer from raw materials to finished products to customers, which includes materials procurement and value added processes. In the product manufacturing procedure, internal integrative management is a key to success. However, companies also need to integrate across the whole supply chain. In today’s highly competitive environment, companies must fully apply their corporate integration to link the customers and suppliers in every available aspect.
In terms of the inventory flow in the car audio industry, it is concerned with storage and movement of materials and finished products. From the very initial step of the materials procurement, car radio products are added values during the inventory movement. The materials and component inventory gain values at each manufacturing process and finally become finished inventory. In terms of the inventory flow, it is concerned with storage and movement of materials and finished products. From the very initial step of the materials procurement, car radio products are added values during the manufacturing process. The materials and component inventory gain values at each manufacturing process and finally become finished inventory.
1. Market distribution.
Market distribution of car radio products is classified as the movement or flow of finished products to customers. In the market distribution, product availability is an essential element of positive marketing effort. Even the end retailers or distributors of the supply chain must be supported by the product availability to earn a successful business, even though in some cases they don’t need to keep auto radio inventory themselves. Only when an acceptable inventory level is available to the next level customers, customer satisfaction and marketing responsibilities can be achieved. If the desired car stereo products are delivered to customers efficiently as desired, prosperous marketing effort will be gained. Therefore, through the whole marketing distribution process for auto radio products, correct timing and placement of inventory become the vital and integral part of marketing success. In order to monitor and control the market distribution efficiently and effectively, certain marketing distribution systems should be introduced into the supply chain. No matter what type of marketing distribution systems, the applied system should have a common feature that it can maintain product availability by integrating manufacturers, agents, distributors and retailers together.
2. Manufacturing support.
The primary goal and responsibility for manufacturing support is focused on the management of work-in-process inventory through each step in the whole manufacturing process. The manufacturing support for car stereo products is required to make and implement a master production schedule to provide product availability as desired. Therefore, the manufacturing support is more than how production is implemented, but focusing more on what, when, where and how many car radio products are made.
Significantly different from the market distribution, manufacturing support involves inventory movement and management that are under the full monitor and control of a manufacturer. The manufacturing support must be able to reflect and satisfy the uncertainties from the market distribution section, such as random ordering and erratic demand from customers. A successful strategy is important in manufacturing support for a company, as it links the outbound demand from the marketing distribution and the inbound activities on components and materials procurement. A suitable strategy must be adopted by the company to improve the efficiency and effectiveness.
The aspect of procurement concentrates on materials or components purchasing and arranging inbound movement of the inventory flow for auto radio products, from suppliers to manufacturers etc. In the procurement process, materials and components are put in value added processes through manufacturing and thus become products that are ready for sales. The area of procurement serves in facilitating the materials acquisition in manufacturing support, and product replenishment in marketing distribution.
In the car stereo industry, the above three aspects are sometimes overlapped in a supplier. To win a successful business, suppliers must focus on all the three aspects of the inventory flow. Understanding the unique attributes of these aspects will help the related company facilitate overall efficiency and effectiveness.