Inventory Strategies and Management
For manufacturing and distribution companies, inventory is often the single largest asset in their business. But every dollar tied up in inventory is a dollar that could be used more productively – for marketing, new product development, or technology enhancements. We can help you “right size” your inventory investment, balancing customer service requirements with the need to optimize your limited resources.
- What is the level of service your customers are willing to pay for?
- What are the lead time requirements you need to support?
- How can we optimize inventory levels across the supply chain?
- What are your current inventory turns?
- What would be the value of carrying additional inventory? What would be the cost?
- What sources are available to help us replace inventory with information?
- How can we reduce inventory replenishment time?
- Where would we invest funds freed up by inventory reduction?
Analyze Current State
- Measure current investment
- Determine customer needs
- Stratify by market need
Determine Desired State
- Estimate optimal inventory levels
- Determine required replenishing times
- Map supply chain
Plan Actions to Close Gaps
- Develop specific project plan
- Determine baseline metrics
- Determine project team and charter
Execute and Measure
- Execute plan using best project management methodologies
- Measure results vs. goals
- Instill continuous improvement