![]() ![]() NC State University’s Supply Chain Resource Cooperative defines inventory positioning as “the selective location of various items in the product line in plant, regional or field warehouses”. This is why inventory positioning, as part of a greater logistics strategy, is critical. There’s no single formula for inventory positioning, but mapping best practices to the needs of a business, its customers and the type of supply chain it uses will go a long way toward successful inventory management.Ĭompetitive advantage comes in many forms, including a business’s ability to have the right products ready for its customers where and when they need them.Inventory positioning can reduce a business’s costs and improve its ability to meet customer demand.Inventory positioning determines where inventory is held prior to sale, along different steps in the supply chain and in different places geographically.Different business models may necessitate different approaches, but almost every business that deals in physical goods can take advantage of inventory positioning to streamline operations, especially during periods of growth. In simple terms, it answers the question, “Where should I store my inventory?” Many factors can influence inventory positioning, including unit economics, demand forecasts and customer expectations. Inventory positioning is the practice of strategically situating inventory, both geographically and within a supply chain, to improve economic efficiency and best serve customers’ needs. Proper planning can reduce a business’s costs while improving the speed and quality of service. Inventory positioning is a critical consideration as a business juggles the constraints and expenses of supply chain choices with the needs of its customers. Inventory positioning describes how a business strategically manages the location of its inventory, both within the supply chain and where it’s held physically, such as a warehouse in Denver or Philadelphia. East, Nordics and Other Regions (opens in new tab)
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