Dynamic inventory management parameters adjusting scheme as a logistics service

This study examined knowledge enhancement model, in which a logistics service provider (LSP) provides dynamic inventory parameter management and update service for their customers in the future. This type of a case based research data about 4PL model cases was one of the research gaps revealed by the literature review done by Selviaridis and Spring (2007). The research data has been collected trough interviews of company owners, logistics managers, project leaders and logistics consults and also from case study, based on real inventory data. Researched concept allows providing of strategic services, such as temporary funding of inventory components, continuous development of the supply chain and new exception management capabilities. The case is considered a good example how demanding and information analytical LSP services are not limited to large size companies and service providers and how it is possible for a small company to grow with the LSP and subcontractors in case of carefully designed supply chain and inventory buffers. Trough applying this model, the LSP can be identified as an enabler of growth and as such LSP can have a tactical supply chain manager role. For a large company, model may save a huge amount of their assets and energy as the inventories are fitted to projected demand. Dynamic warehouse management model allows demand synchronized inventory parameter update process using fast re-parametrization process based on real inventory demand data. The model is based on an idea of using both long and short time period history data to anticipate the future demand and its variations.