500 Q. I have multiple locations. However, after years of experience, I have to admit I recommend centralization of the inventory management function. One of my white papers on my Web site deals with the subject at length. Inventory management is a complex issue, but in summary, while there are unquestioned advantages to decentralized control, they are overwhelmed by the need to have the professional talent located centrally to optimize this function.
Local control is rife with emotion and tends to opt for excess stock.
And in a supply chain environment, you will not be in a position to optimize the purchasing opportunities available if each location is calling its own shots. Get a printer-friendly version of this article Tell a colleague about this article Add this article to your portfolio I'm not seeking outside investors. Monthly financial statements aren't enough. All rights reserved.