Inventory Intelligence That Gets Results

Reports are indicating that companies are beginning to grow their inventories, contrary to the massive reductions that occurred at the start of the recession. However, most of these companies are doing so without the necessary intelligence about where to invest and how much. This is one of many benefits found through an inventory optimization solution.

In a recent article written by Marisa Brown, Knowledge Center Director at APQC, she methodically explains the key components of a well-defined inventory optimization strategy and how to achieve the requirements of high service levels while avoiding the excessively high carrying costs of inventory.

As defined by Ms. Brown, the key components of an effective strategy include:

• Senior management support
• Periodic evaluation
• Managing service levels
• Partnering with suppliers
• Implementing inventory processes and procedures, and
• Enabling technology for optimization
• Measurement and continuous improvement

Implementing an effective strategy for inventory optimization can drive benefits beyond reducing inventory and achieving targeted service levels. It also provides for improved planner productivity, faster cash-to-cash cycles, and generating intelligence about what is driving inventory performance.

What is your strategy for implementing inventory optimization for your organization?

Read the full article from Supply Chain Management Review.

Contact TCLogic to discuss inventory optimization.