Ultriva Recommends Managing Inventory Challenges of 3PLs
Ultriva Recommends Managing Inventory Challenges of 3PLs, and 3 most common problems
· Inventory accuracy
· Supplier visibility on the consigned material
· Managing excess inventory returned from the plants
3PLs offer a variety of services, but the primary function of these organizations can be summarized as providing transportation, warehousing, and management of inventory for another company.
Gopalun explained, “Major complexity arises for the company when the 3PL transfers a full lot to the assembly line and the company only needs one piece. Who pays the Supplier? Who is keeping track? Most of the time consumption of a whole inventory lot by the company might take several days depending on how it is packaged. Who owns the inventory at this point? It is a daunting task for the 3PLs to keep track of company-owned inventories and supplier-owned inventories.”
Ultriva software solves the problem of visibility. Ultriva architecture establishes a series of interconnected loops, standardizes receiving processes, standardizes material pick process, and standardizes shipping process for the 3PL material handler and receivers. Typically Ultriva recommends a closed-loop between the external Supplier and 3PL warehouse and multiple loops between the assembly lines and 3PL warehouse. A closed-loop system guarantees no part gets lost; a direct, traceable line is created that can be seen by anyone at any point of the parts’ lifetime. Multiple loops have the same closed-loop visibility, yet this allows anyone to adjust the amount of parts being used depending on need.
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Ultriva’s (www.ultriva.com) cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment solution. Ultriva, based in Cupertino, CA, implements a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. Ultriva was recently named one of the Great Supply Chain Projects of 2014 by Supply & Demand Chain Executive magazine. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as Magellan Aerospace, CareFusion, Emerson, Ingersoll Rand, McKesson, Triumph Group, Regal Beloit, Thermo Fisher and more. Follow Ultriva on Twitter at @Ultriva.