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Home » What's the Value of Increasing Inventory Accuracy by 1 Percent?

What's the Value of Increasing Inventory Accuracy by 1 Percent?

October 28, 2009
APQC

Examining inventory accuracy with other metrics in APQC's Open Standards logistics research, APQC found that an increase in inventory accuracy from 98 percent to 99 percent is associated with:

• a 7.7 percent increase in supplier orders delivered on time,
• faster dock-to-stock cycle times (1.56 hours faster), and 
• a 2.25 percent increase in the number of sales orders delivered on time.

According to the same data, inventory accuracy also is correlated with:

• higher percentages of supplier orders delivered on time, 
• shorter dock-to-stock cycle times for supplier deliveries, 
• higher percentages of sales orders delivered on time,
• lower total cost to operate outbound transportation per sales order, and
• lower freight costs to operate outbound transportation as a percentage of total logistics cost.

Read Full Article

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    Inventory Planning/ Optimization Global Supply Chain Management Consumer Packaged Goods
    KEYWORDS consumer packaged goods Global Supply Chain Management Inventory Planning/ Optimization
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