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.

The Inventory Accuracy “Confidence Gap”

Talking Logistics

The research focused on the inventory visibility and optimization challenges that companies face today related to omni-channel fulfillment and the actions they should take to elevate their omni-channel performance. And it begins with improving their inventory accuracy.

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Design, Operating and Situational Inventory Trade-Offs

ToolsGroup

Gartner analyst Paul Lord has developed a framework to better understand inventory trade-offs by categorizing those decisions according to the objectives they are meant to achieve: structural, operational and situational. or “How can we reduce inventory and improve our balance sheet?”.

Strategic sourcing enters a new age. Are you keeping up? (Part 2)

ivalua

In last week’s blog , I began discussing telltale signs that you have entered the new age of strategic sourcing. Improving costs remains a core competency for any sourcing organization. Inventory. The post Strategic sourcing enters a new age.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Source: Dictionary.com. Spinnaker Management Group asked me to co-present on a demand-driven webinar with SanDisk. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies.

What Does It Take To Make Sourcing Truly Strategic?

USC Consulting Group

Marketplace pressures have forced procurement professionals to abandon traditional sourcing practices and implement more responsive strategies designed to promote organizational efficiency, agility and flexibility for growth, not to mention cost reductions.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions.

The Benefits of Evolved Vendor Managed Inventory Model Led by Web-Based VMI

Cerasis

So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. ” Vendor Managed Inventory Model: A Quick Back Story.

Vendor Managed Inventory Model for Supply Chain Cost Reductions

Cerasis

Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan.

Sales, Inventory & Operations Planning – What It Is and How to Operate

USC Consulting Group

Sales, Inventory & Operations Planning (SIOP) is a dynamic process in which the company’s operating plan is updated on a regular monthly or more frequent basis. Objectives of Sales, Inventory & Operations Planning. The company must define product groupings or families.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions.

Winning the Inventory Battle in the Consumer Products Industry

Logility

Depending on the source, it is widely reported that anywhere from 50 to 85% of new products fail to achieve success. reduction in finished goods inventory (days). reduction in inventory obsolescence (percent of inventory value). eBook: The Inventory Optimization Handbook.

Retail Inventory Shrinkage Remains a Problem

Enterra Insights

For the last few years, inventory shrinkage has annually cost U.S. ” Regardless of how inventory is lost, shrinkage costs retailers a lot of money. To reduce shrinkage, retailers need to have a strategy to address each of the ways inventory can be lost. Inventory shrinkage strategies. Addressing inventory shrinkage begins with inventory management. Trujillo explains, “Take the plunge and invest in an inventory management system.

Tips for Getting Executive Buy-in for Supply Chain Planning Software

ToolsGroup

During this stage project leaders should be communicating with leaders and other functional groups to help them understand how SCP will benefit their specific roles and goals. How will the company and different functional groups transition to life with the new SCP technology?

Parts Are Not Parts

Supply Chain Shaman

A slight change within a function–in sourcing or manufacturing, or along the chain–can greatly impact the outcomes of cost, customer service, or working capital. Days of Inventory by Industry Across Years. Let’s take a closer look at sourcing.

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7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

What Your Inventory Can Tell You About Your Promotional Strategies

Cognira

Below are some thoughts about promotions from the POV of an Inventory Manager. Inventory Managers can see that there is no turning back time on the discount clock. Why do Inventory Managers care? How does this impact Inventory Management?

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. Inventory Management market-driven value chains

What Your Inventory Can Tell You About Your Promotional Strategies

Cognira

Below are some thoughts about promotions from the POV of an Inventory Manager. Inventory Managers can see that there is no turning back time on the discount clock. Why do Inventory Managers care? It’s harder to move inventory through the supply chain quickly in response to sales.

The Next Great Disruption Coming to Supply Chains

Kinaxis

I watched a TED Talk video by Philip Evans, from Boston Consulting Group and shuddered to think that all our traditional fulfillment and inventory models can be drastically transformed by the “consumer”. They want to assure the sourcing meets their “sustainable” expectations.

What About Them Apples?

Supply Chain Shaman

If we look back at history, 70% of companies implemented Vendor Managed Inventory (VMI), however two-decades later only 1% of companies use VMI processes to drive a better demand signal. Inventory strategies and processes to absorb the error.

Do You Understand Your Chief MRO Inventory Challenges?

Logistics Bureau

If your company is in the business of maintenance, repair, and operations, you should already be aware of the strengthening trend in service as a source of value , both in business-to-business and business-to-consumer marketplaces. Do you know the depletion rate of your MRO-related inventory?

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

Groups throw-out concepts. While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. Groups rally around the concept of real-time. Here I smile, and I hope that groups take pause.).

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Food and Beverage Industry Reevaluating Strategies to Combat Coronavirus

USC Consulting Group

Inventory management more of a priority. For example, inventory management has always been something that consultants have promoted, but it appears that more organizations are taking this advice more seriously. It is a delicate balance to run a business in times of economic uncertainty.

What Is ABC Analysis In Inventory Management?

Abivin

ABC analysis of inventory is the classification of a group of items in decreasing order, based on their value to the business. The A group is the most important in terms of the value contributing to the company, whilst C items are the least valuable. Source) 1. Source) 2.

Do You Have a Proactive Supply Chain Design or a Reactive One?

Talking Logistics

Thankfully, digitization of inventory and technology like real-time shipment tracking from 3PLs are taking the pinch out of switching for these companies. While the Greenfield optimization approach doesn’t consider aspects like building capacities, inbound costs, transportation, or sourcing policies, it does offer a smart recommendation for the optimal amount and placement of your distribution centers. Eric Robinson is a Senior Project Engineers at Kenco Group.

How to Make Supply Chain Complexity Work to Your Advantage

ToolsGroup

Too many companies get locked into traditional processes and a familiar vicious cycle: unable to reliably forecast an increasing number of SKU combinations, they load up on inventory to accommodate long-tail, erratic demand. Blog Inventory Optimization Supply Chain Planning Featured

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Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

In most ‘benchmarking activities’, self-reported data is the most common source. However, for elements like forecast error, customer service and slow-moving inventory self-reported data is not sufficient. 4) Best Forecasters do not Have the Best Inventory Results.

Inventory Reconciliation Helps Improve Inventory Control

Unleashed

For any retail or eCommerce business owner, inventory stock will fluctuate constantly and there is a very real chance that your latest inventory records don’t accurately match your physical inventory stock. It is important to keep track of all your inventory and it is necessary to undertake periodic inventory reconciliations to ensure that the numbers in the database match the on-hand inventory stock. Inventory reconciliation. Inventory control.

Challenges of global fast fashion supply chains (Part III)

Supply Chain Movement

Sourcing and manufacturing lead times. We have already discussed in this global fashion retail series about network design and inventory location in Chapter 1 and stores replenishment in Chapter 2. The first is the question of sourcing location.

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The Convergence of Logistics and Commerce (and Social Networking Too)

Talking Logistics

I haven’t been briefed yet by Symphony about its Fulfillment as a Service offering, but the graphic below from its website illustrates the main components: a network of warehouses coupled with inventory and order management tools and APIs. Source: Symphony Commerce website.

Supply Chain Management: How to Optimize the Process

USC Consulting Group

Start at the front end with planning and scheduling, inventory management, and strategic sourcing. Here at USC Consulting Group, we’ve been working with organizations across numerous industries for 50 years, helping them transform their operations and optimize their supply chain.

How BT is Building a Connected Supply Chain Amidst Ongoing Transformation

AIMMS

We spoke with David Mackenzie , Transformation & Inventory Director at BT, to learn more about this shift and the role AIMMS has played in enabling it. Our inventory managers work with demand and supply forecasting across our business.

By all means use forecasting time fences. And by all means violate your time fences.

Demand Solutions

An item's forecasting time fence often mirrors the item's planning or sourcing lead time. A forecast change within the time fence won't impact an item's near term availability, but it will be reflected in the item's longer term projected inventory.

Measuring Up?

Supply Chain Shaman

In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. The analysis is within peer groups as defined by NAICS codes. Inventory Turns. The bigger the inventory turns number the better.