Inventory Management Report: Automotive Industry Trends and Strategies

This report examines the critical role of inventory management within the automotive industry, highlighting the shift from traditional physical retail to online commerce. The report discusses how the rise of online platforms and tools like Car Gurus has influenced consumer behavior and, consequently, the demand for automobiles. It emphasizes the importance of adaptable inventory strategies, such as pooling inventory and optimizing local search systems, to meet evolving market demands. Furthermore, the report provides insights into the practical application of inventory management principles, with suggestions for automotive businesses to optimize their supply chains and adapt to current trends. The report references the need to manage inventory efficiently to ensure the availability of products to meet customer demand.

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Running Head: Inventory Management
INVENTORY MANAGEMENT

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Inventory Management
Executive Summary
The article deals with the implications for automotive companies for inventory
management. It points out that in the history of retail, the physical presence of products
in the inventory system were identified as a marker of success and growth. However,
Amazon upended this system.
Wins that connect to the topic
The inventory system is depended on the number of searches a particular product gets.
This opened the eyes of automobile retailers towards online commerce rather than
6gphysical sales. The market for automobiles cars also works similarly to any other
product in retail.
Operations Management practice
This article is related to inventory management that is an important part of operations
management. Operations management refers to the management of a business in such
a manner that all the involved processes and proceedings in the business are carried
out in the most efficient manner (Parpia, & Singh, 2016). Inventory management is the
process of managing stocks of goods and products for retail businesses so that they
good be supplied to customers according to their demand.
Impact that the tools had
In recent years, Car Gurus have popped up and impacted the tendencies of buyers to
prefer one car over the other. As a result, the demand for automobiles is also erratic
and hence the inventory needs to be managed (Forbes, 2019). Through the steps
provided in the article, automobile businesses would be able to keep up with the trends
in the market and provide their customers with what they demand.
Used as a lesson in own organization
The article provides with inventory management steps that are versatile to almost all
industries like pooling inventory, managing inventory keeping the location of the outlet in
mind and optimizing the local search system online. This can be used in my
organization as they also have several branches located nearby. Pooling inventory can
result in the creation of a larger common inventory pool that would be beneficial to all
the involved parties.

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Inventory Management
References
Forbes, (2019), Inventory Management Implications for Automotive Digital Retail
Strategies, Retrieved from:
https://www.forbes.com/sites/forbescommunicationscouncil/2019/06/13/
inventory-management-implications-for-automotive-digital-retail-strategies/
#d2495d16266e
Parpia, I. H., & Singh, G. (2016). U.S. Patent No. 9,280,757. Washington, DC: U.S.
Patent and Trademark Office.