Inventory Management Blog Post

Inventory Management’s Crucial Role in the Supply Chain

What is Inventory Management and Why is it Important?

 Inventory management refers to the process of ordering, storing and using a company’s goods or materials. Successfully managing inventory allows businesses to meet the demand level of their consumers with an appropriate amount of supply. Ineffective management can result in excess inventory which runs the risk of spoilage, damage or a shift in demand that causes stock to pile up even further. If inventory isn’t sold before any of these happen, it is often sold at clearance prices or destroyed.

 In a survey of 2,467 U.S. supply chain professionals conducted by the Association for Supply Chain Management (ASCM), 58% of respondents reported that inventory management is a top technical skill in their field. It’s an essential component of keeping supply chains running smoothly. Effective inventory management requires a reliable technology platform and communication between all parties involved.

 Without inventory management, businesses would experience higher levels of waste and excess storage costs. Communicating with customers about product availability and estimated shipping dates becomes impossible when accurate and up-to-date information is missing.

 How Can I Improve Inventory Management in My Supply Chain?

 Effective supply chain management starts with technology. Eliminating traditional and often manual strategies saves time and reduces the risk of error. Digitally managing operations makes any information recorded simpler to share across an entire supply chain. If your company has already implemented a transportation management system (TMS), you’re already halfway to full supply chain optimization!

 Transportation management and inventory management are two essential parts of a successful supply chain. Transportation management systems (TMS) deal with the movement of products across the supply chain and provide a necessary platform for carriers, shippers and manufacturers to communicate. Inventory management platforms focus specifically on the quantity and type of product in a warehouse or other storage facility. Together, these pieces of technology form the basis for companies to get their products into the hands of customers as efficiently as possible.

For instance, when a company leverages a TMS to react quickly to a customer’s order, product moves swiftly out of the warehouse and is no longer taking up inventory space. That space is then available for fresher inventory to replace it. Inventory management systems can react to those quick shipments and ensure that the oldest inventory is being shipped first.

Tracking spoiled or faulty inventory is also made easier when inventory management and a TMS work hand in hand. With a TMS, products are tracked down to the SKU level and can be easily traced once they leave the warehouse. When an item is on recall, inventory management teams have all the relevant information they need to find and isolate bad product.

Certain transportation management systems like Kuebix TMS are able to integrate directly with ERPs like NetSuite or Microsoft Dynamics. When integrated, these technologies offer logistics professionals increased shipment accuracy by eliminating the need for manual entry, significant time savings, and access to meaningful analytics for SKU-level cost allocation.  Integrations between a TMS and an ERP can help bridge the gap between inventory management and transportation management by sharing data between systems to make sure all parties involved have accurate, real-time information on inventory.

AMMEX Case Study with Kuebix

How One Company Benefits from an Integration with Microsoft Dynamics & Kuebix TMS

Global Importer, AMMEX, Realizes Significant Time Savings By Leveraging an Integration Between Kuebix Transportation Management System (TMS) and Microsoft Dynamics ERP


AMMEX is a global importer of disposable gloves providing retailers and distributors with high-performance, high-margin products. The company sources disposable rubber, latex, and nitrile gloves from vendors across Asia before transporting their goods via direct shipping containers to North America. AMMEX uses third-party warehouses located in Washington, Pennsylvania, Georgia, Nevada, and Canada to fulfill orders across North America with LTL shipments.

Currently, AMMEX ships between 80 – 100+ LTL shipments every day from their domestic warehouse locations. As a massive enterprise organization, AMMEX decided to turn to technology to streamline their logistics operations and make shipping processes more transparent.

How AMMEX Is Using Kuebix Transportation Management System Today

In 2018, AMMEX conducted an RFP to discover the best fitting transportation management system for their needs. Being able to connect their ERP system, Microsoft Dynamics, to streamline order processing was a significant factor in the company’s final decision.

After evaluating several options, AMMEX implemented Kuebix TMS in late 2018 and has continued to add functionality and features to expand its usage across their offices in the USA and the Philippines. Currently, 15 logistics and supply chain professionals within the company are registered users of the TMS.

AMMEX’s logistics team uses the TMS on a daily basis to rate, book, and track their LTL shipments to retailers and distributors nationwide. The company’s Operations Manager, Patricia David, leads a team of 9 people who oversee the company’s logistics processes.

David handles daily organization with the warehouses, manages returns and sales, and also deals with vendors and brokers. David, who is based in Metro Manila, Philippines, has worked at AMMEX for 12 years and has seen significant0 operational improvements since implementing Kuebix.

“The ease of comparing rates between different carriers makes the process of rating and booking much faster for us,” said David. “Instead of going between multiple carrier websites, we only have to look at a single page!”

Integrating with Microsoft Dynamics

Not only does the technology make rating easier, it also consolidates the company’s LTL shipment information into a single source of truth.

Instead of re-keying information between their ERP system and Kuebix TMS, AMMEX is leveraging an ERP integration between Microsoft Dynamics and Kuebix to automatically populate order information between systems. This greatly speeds up the order creation process and ensures that issues don’t arise because of human error.

David went on to say, “Our PO team simply processes orders in our ERP system and they appear in Kuebix. Then, all my team needs to do is book the shipments and process the BOL (bill of lading) in the TMS! Once it’s been processed, it comes back automatically with a PRO number. When we were doing BOLs manually, it was taking us between 3 – 5 minutes per shipment since we needed to check the weight, pallet count, etc. With Kuebix and an integration to Microsoft Dynamics, we’ve cut that time down to 2 minutes and are ensuring accuracy every time!”

Being able to have full visibility to exact order information is especially helpful for AMMEX as an organization with teams located across the globe and with third-party warehouses. Accurate communication is essential to keeping operations running smoothly and having all information consolidated into a single TMS creates efficiencies. All records, invoice payments, and financial analytics are also stored within the system when an ERP integration is added.

Adding Additional Functionality With Kuebix TMS

AMMEX has decided to continue to scale with Kuebix by adding container tracking for inbound visibility. Once this has been configured for AMMEX, the team located in Kent, Washington will also begin using Kuebix to manage inbound container shipments from China, Malaysia, and Thailand.

Click here to download this case study as a PDF.

Kuebix is a Gold Sponsor of the Microsoft Dynamics User Group Summit North America on October 15 – 18, 2019 in Kissimmee, FL. Stop by Booth #1713 at the conference for a demonstration or to learn more about Kuebix’s seamless integrations to Microsoft Dynamics.

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