Responding to the economic crisis, many organizations quickly reduced inventories in order to mirror new demand realities. However, as signs increasingly point to a recovery, these same companies are realizing that perhaps their inventory levels are too lean.
In a survey published last month by Morgan Stanley, they found that 42 percent of the 500 respondents expect their ordering activity to pick up in 2011. According to Morgan Stanley, these findings suggest that the restocking activity of 2010, which played a role in last year's recovery, still has some life left in it.
As the process of restocking inventory continues, it is critical to restock to strategic levels. During the course of reducing inventory, many companies found themselves with higher percentages of slow-moving and/or dead inventory. To prevent further growth of this under-performing asset, it is imperative to create stocking strategies that improve the overall performance of the inventory investment.
Creating stocking strategies that achieve best-in-class services levels at the lowest cost of inventory can be accomplished with an inventory optimization solution. Utilizing data already residing in your ERP, these solutions offer a rapid implementation timeframe and can provide an ROI within 6-12 months.
Companies can no longer afford to base stocking decisions on simple planning strategies developed twenty years ago. These outdated methods often inflate safety stocks, lower turn rates, and achieve less-than optimal service levels.
What method does your company employ to determine stocking levels? Is there an effort underway to investigate advanced methods?
Contact TCLogic to learn more.
Read the full article from DC Velocity.
In a survey published last month by Morgan Stanley, they found that 42 percent of the 500 respondents expect their ordering activity to pick up in 2011. According to Morgan Stanley, these findings suggest that the restocking activity of 2010, which played a role in last year's recovery, still has some life left in it.
As the process of restocking inventory continues, it is critical to restock to strategic levels. During the course of reducing inventory, many companies found themselves with higher percentages of slow-moving and/or dead inventory. To prevent further growth of this under-performing asset, it is imperative to create stocking strategies that improve the overall performance of the inventory investment.
Creating stocking strategies that achieve best-in-class services levels at the lowest cost of inventory can be accomplished with an inventory optimization solution. Utilizing data already residing in your ERP, these solutions offer a rapid implementation timeframe and can provide an ROI within 6-12 months.
Companies can no longer afford to base stocking decisions on simple planning strategies developed twenty years ago. These outdated methods often inflate safety stocks, lower turn rates, and achieve less-than optimal service levels.
What method does your company employ to determine stocking levels? Is there an effort underway to investigate advanced methods?
Contact TCLogic to learn more.
Read the full article from DC Velocity.
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