ROI was founded 15 years ago to help Mercy Health Systems reduce overall supply chain expenses and improve patient care. Greg Goddard, project director for supply chain operations, discusses ROI's business model and how changes in U.S. healthcare are impacting the supply chain.
Depending on which corporate silo you belong to, inventory can be a liability, an asset or something in between. How do supply chain professionals overcome these biases and implement optimal inventory management solutions?
Managing inventory requires skillfully balancing a variety of complicated and competing objectives. Supply management professionals responsible for inventory have to control inventory holding costs, such as warehousing and financial opportunity costs, while pursuing cost savings that may be obtained with larger purchases. They also simultaneously support ambitious customer service levels for a constantly expanding product portfolio. Of course, supply managers who focus on inventory know these pressures well.
Inventory is evil. Inventory is essential. The two statements aren't necessarily contradictory. Not if companies can figure out a way to determine the absolute minimum amount of stock needed to keep customers happy, while maintaining a tight lid on costs.