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Inventory Everywhere, But Not the Right Product to Ship

Supply Chain Shaman

Bloated inventories. Despite investments in planning, today, industries hold 28 more days of inventory than in 2004. The larger the number of days of inventory, the greater the cash drag.) Changes in Inventory Year-end inventory values by industry from Y Charts. The story continues. Rising inflation.

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Inventory Management: We Can Do Better

Supply Chain Shaman

Downsizing inventories over the past decade crippled the response.” In Table 1, I share research collected for the Supply Chains to Admire analysis on the average days of inventory by industry across the period of 2004 to 2019 by increments to match economic shifts. Days of Inventory Peer Group Across Time Periods.

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Transversing the Paradox River

Supply Chain Shaman

The larger the global corporation, the more that the use of functional goals sub-optimizes growth, margin and inventory levels. In 2004, my research showed a bell curve of innovators and laggards. Measurement. Organizations speak of the bullwhip, but don’t measure it or monitor the effects. Innovation.

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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory. My takeaway?

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Untangling The Tangled Web We Weave

Supply Chain Shaman

The year was 2004. I was working on a report on the Multi-Enterprise Inventory Management (often termed MEIO) and I challenged Pete. The software never expanded in scope to manage multi-tier inventories. Rise in Inventories. Across industries, we carry 28 more days of inventory. Old habits die hard.) The reason?

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This Week in Logistics News (September 24 – 30)

Logistics Viewpoints

since 2004, hit an all-time high of 4,586 points in late March. The CNBC article states, “ As delivery times and consumer demand rose this year, retailers responded by ordering inventory earlier than usual. When in-transit shipping time began to improve quickly, Nike CFO Matthew Friend said, it led to swelling inventories.”

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Struggling with Multi-Echelon Inventory Adoption

Arkieva

I came into the field of supply chain management in 2004. 2006-2009 I did a PhD on Multi-Echelon Inventory Optimization. 2006-2009 I did a PhD on Multi-Echelon Inventory Optimization. Though benefits are clear, multi-echelon inventory adoption has been very slow. Why is multi-echelon inventory adoption limited?