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16 Cost Reduction Strategies in Inventory Management

Unleashed

So your company is looking to reduce costs, and you’ve been asked to contribute by reducing your inventory cost. That makes sense – inventory is one of the most capital intensive areas for any product business. Here we explain how you can do this with 16 cost reduction strategies in inventory management?that

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How Pure Storage Withstood the Pandemic

Logistics Viewpoints

In 2014, the company’s revenues were $43 million. To support this level of responsiveness Pure Storage has more than 200 depots around the world that carry field service inventory. And when it looked like a lock down might be imminent, they rushed even more inventory in. In their fiscal year 2021 they had revenues of nearly $1.7

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Renegade Riposte

Supply Chain Shaman

We developed the Supply Chain Index in 2014 as a way to measure supply chain improvement at a balance sheet level. I responded, by saying that I believe that the SCOR model and the Gartner Hierarchy of Metrics reward functional behavior and improve functional outcomes. What CEO does not like the concept of reducing inventory?

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One Multinational’s Supply Chain Transformation Journey

Logistics Viewpoints

For some customers, they manage the inventory using a vendor managed inventory program. In some case they manage inventory at the customer’s site. “We They built them between 2012 and 2014, and then enhanced them when better supply chain risk management solutions became available. The company has over 300,000 products.

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Demand-Driven Transformation at Shell

Supply Chain Shaman

Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. They saw a steady drop in inventory and reduced working capital by about 50% over the period of 2011-2015. Impact of Demand Sensing on Inventory Levels. The reason? The implementation was very successful.

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How Demand Planning Influences Supply Planning through Predicting Future Demand Patterns

Vanguard Software

Not too long ago, in 2014, Walgreens had a $1 billion forecasting error that led to the exit of two executives. Whereas supply planning projects and manages inventory or supply to meet consumer demand. Organizations can then make shrewd business decisions about inventory and production.

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Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC). Before taking her current position, she served in several capacities including Seagate’s product design and manufacturing facilities in the U.S. Second Phase: 2006-2014.