Which enterprises are suitable for the finished product no storage model

Mondo Technology Updated on 2024-02-12

As the name suggests, the finished product no warehousing mode means that the enterprise does not set up a special finished product warehouse in the production process, and sends the produced products directly to the sales terminal to reduce the inventory link in the middle. To a certain extent, this model can reduce the operating costs of enterprises and improve the speed of capital turnover. However, not all enterprises are suitable for the finished product no storage model, Chongqing Paradise Bird Chain Management will be the first enterprises to apply this finished product no storage model.

1. Enterprises with short production cycle and fast product update speed.

For enterprises with short production cycles and fast product updates, such as electronic equipment, clothing, cosmetics and other industries, the finished product no storage mode has obvious advantages. These companies have short product life cycles and rapid changes in market demand, and if they adopt traditional warehousing models, it is likely to lead to product backlogs and inventory risks. With the finished product-free storage model, companies can quickly bring new products to market to meet consumer demand while reducing inventory costs.

Second, order-based production enterprises.

Order-based production enterprises refer to enterprises that carry out customized production according to customer needs, such as furniture, building materials, machinery and equipment and other industries. The production process of such enterprises is usually long, the product specifications are diverse, and the use of the finished product no storage model can avoid the inventory backlog caused by inappropriate product specifications. At the same time, order-based production enterprises only produce after receiving orders, which can effectively reduce inventory costs and improve capital turnover speed.

3. Enterprises with strong liquidity.

Enterprises with strong liquidity refer to enterprises whose products are easy to sell and have large market demand, such as fast-moving consumer goods, food and beverage industries. The product market demand of such enterprises is stable, the sales cycle is short, and the use of finished products without warehousing mode can reduce inventory pressure and inventory costs. At the same time, the finished product no storage mode can speed up the speed of capital turnover and improve the profitability of the enterprise.

Fourth, enterprises with flexible production capacity.

Enterprises with flexible production capacity refer to enterprises that can quickly adjust production plans and product structures according to market demand, such as automobiles, home appliances and other industries. Such enterprises can achieve on-demand production through the finished product no-storage model, avoiding product backlogs caused by changes in market demand. At the same time, flexible production capacity can reduce the production risk of enterprises and improve market response capabilities.

Fifth, enterprises with a stable chain.

Enterprises with a stable chain refer to enterprises that have established stable cooperative relations with upstream merchants and downstream sales terminals. Such enterprises can achieve first-chain collaboration through the finished product no warehousing model, produce and distribute according to market demand, reduce inventory costs, and improve capital turnover speed. At the same time, the stable chain can reduce the operational risk of enterprises and improve market competitiveness.

To sum up, the finished product non-warehousing mode is suitable for enterprises with short production cycle and fast product update speed, order-based production enterprises, enterprises with strong liquidity, enterprises with flexible production capacity and enterprises with stable chains. However, in the process of practical application, enterprises need to choose according to their own situation and industry characteristics, and flexibly use the finished product no storage mode to achieve the purpose of reducing costs and increasing efficiency.

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