Retailers are making a fundamental shift in the way they do business by creating value networks that coordinate processes and technology to understand, shape and respond more efficiently to consumer demand. Leading supply chain organizations recognize the link between responsive networks and improved supply chain performance.
Using a global inventory approach to "fire your inventory" may be much less disruptive than other cost-savings options your company may be considering.
Working capital optimization has always been the least expensive and most readily available form of cash. With tightening credit markets the option of liberating cash from a company's operational processes has moved to the forefront. Inventory optimization presents the second-largest opportunity among the working capital components after trade receivables and ahead of trade payables.
Only 31 percent of organizations are looking at inventory management as a competitive differentiator versus the rest looking at it as a cost impactor. By adjusting the existing processes to configure a closed-loop inventory management process, organizations can gain significant improvement in customer service levels and reduced inventory carrying costs. The concept of closed-loop inventory management involves seven steps within the process: analyze demand, segment inventory, optimize inventory, replenish inventory, track inventory, manage events, and responsively execute.
To make multi-echelon inventory optimization more impactful, it must take a more holistic approach that accounts for the implications of inventory decisions on total supply chain costs, for organizational realities and weaknesses in supporting functional areas.
The latest news, analysis, trends and solutions regarding inventory planning and optimization and its impact on supply chain management. New technologies in inventory planning and optimization are transforming the way companies operate - and allowing them to stay ahead of the competition in their industries. As these solutions continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies around the world are using inventory planning solutions for supply chain optimization.
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