“’Substitute information for inventory.’ - This simple yet powerful principle helped me drive the implementation of our company’s planning process. The more information you can gather, the less inventory you need to hold.”
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
Supply Chain Services