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. So when we start with the facts, it is clear that every industry peer group increased the days of inventory.

Inventory Management in Service Logistics Industry

Talking Logistics

What is Inventory Management? For Manufacturing it’s about carrying zero or minimum inventory. For Logistics the focus is on high inventory turns. Inventory Management is about having a right balance of expectations from different functions of the supply chain.

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Multi-echelon inventory optimization vs inventory optimization

ToolsGroup

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. Inventory Optimization

Turn a Good Demand Forecast into the Optimum Inventory Plan

ToolsGroup

How Do You Turn a Good Demand Forecast into the Optimum Inventory Plan? They care if you have the inventory they want when they want it. But carrying too much inventory can reduce profits and might not be practical for some items such as fresh goods.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. In business there are many drivers of inventory, and the management of inventory levels requires discipline and a cross-functional focus. What Drives Inventory Effectiveness?

Multi-echelon inventory optimization vs inventory optimization

ToolsGroup

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. Inventory Optimization

Is Inventory Waste or an Asset?

Supply Chain Shaman

We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.” His feeling was that inventory is an asset to manage. Inventory is both. Inventory management is a complex subject.

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

Optimization and Execution: How Manufacturing can lead the Industry Renaissance

DELMIA Quintiq

The Industry Renaissance has transformed invention and production for the needs of today’s customers. Unforeseen bottlenecks and constraints constantly delayed productions and the only way to ensure on time deliveries was to expedite, add labor or overstock inventory and WIP; all at great expense. Thanks to material synchronization and optimal planning, inventory reductions of 40% or more have been achieved and cycle times reduced by up to 50%.

What is Inventory Forecasting?

EMERGE App

What is Inventory Forecasting? Wait, what has this got to do with inventory forecasting? So, for the majority of small and medium businesses, inventory forecasting is simply an inventory reordering strategy to ensure that your stock levels are in the Goldilocks zone.

How manufacturers optimize their inventories

ToolsGroup

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions (that's him on the left), sat down with me to discuss how manufacturers optimize their inventories. It then uses this model to understand the impact of demand forecasting on inventory.

Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

by Jeswin Philip The Food Packaging Trends and Advances report from PMMI forecasts that the US Food and Beverage industry will experience a 2.9 % CAGR through 2022. The report also mentions that the global growth rate is almost double that of the US food industry. As with any industry, food and beverage faces its own unique set of supply chain challenges, including: Expiring ingredients, manufactured product and packaged goods. What is vendor-managed inventory?

How Much Inventory is Enough?

Adexa

Most companies try to minimize inventory by improving their inventory turns. However, this measure does not reflect the potential impact of inventory on revenue. Inventory maybe undesirable however it is both an investment as well as insurance to protect the business.

Lean Inventory: Using Lean Initiatives To Manage Inventory

Cerasis

What is Lean Inventory Management? More firms are implementing lean inventory management techniques to reduce costs, improve flexibility and have more time to focus on their customers. Lean supply chain and inventory management enable Small Medium Businesses (SMB) to improve efficiency and increase profits. What is Lean Inventory Management? Over the years, the concept has been modified and applied to nearly all industries. Supply Chain lean inventory

Lean 263

Five Reasons Why Are We Not Making Progress on Inventory Management

Supply Chain Shaman

At the session, we discussed why companies have not made more progress on inventory management. Note in Figure 1, that eight industries have gone backwards and four moved forward. Days of Inventory Pre and Post-Recession. IT View of the Current State of Inventory.

Winning the Inventory Battle in the Consumer Products Industry

Logility

The Consumer Products Industry experienced a 32% growth in active items in 2015 and that trend has accelerated over the last 18 months. From a supply chain standpoint the battle for new product profitability relies largely on two key capabilities, developing accurate new product forecasts and optimizing new product inventory. reduction in finished goods inventory (days). reduction in inventory obsolescence (percent of inventory value).

How manufacturers optimize their inventories

ToolsGroup

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions (that's him on the left), sat down with me to discuss how manufacturers optimize their inventories. It then uses this model to understand the impact of demand forecasting on inventory.

Five Inventory Optimization Secrets for Aftermarket Parts

ToolsGroup

It’s notoriously difficult to optimize inventory for aftermarket parts. Read on for our five inventory optimization secrets for aftermarket parts. Five Inventory Optimization Secrets for Aftermarket Parts. In a world of intermittent demand where service is king, understanding these points will help you chart your aftermarket inventory strategy. Sporadic demand and escalating SKU counts challenge distributors’ ability to economically carry the right inventory.

A Year Without Oktoberfest, Yet New Opportunities Exist in the Beer Industry

DELMIA Quintiq

The cancellation of this year’s Oktoberfest is another blow to a beleaguered beer industry that’s still reeling from the effects of the global health crisis.

11 Inventory Management Best Practices

Supply Chain Game Changer

Featuring Our 10 Best Inventory Management Articles! Inventory Management Best Practices article originally published by, and permission to publish here provided by, Dave Joseph at veridian.info. Supply chain leaders are continuously looking for ways to improve inventory management, and the role of technology in the supply chain offers significant advantages. Use ABC Analysis to Categorize Your Inventory. Recognize the Relationship Between Sales and Inventory.

Drone-Powered Digital Inventory

PINC

Even though 90% of inventory is stationary in the supply chain, according to industry experts, inventory accuracy at distribution centers, warehouses, and plants ranges from 89% to 99% *. That’s because most of the inventory management process is still a manual activity. innovation inventory robotics Logistics Viewpoints warehouse drones

The Future of Inventory Management

Kinaxis

by Andrew Dunbar This post concludes my inventory management blog series. Throughout this series I’ve proposed an elevated role for the inventory manager that challenges the assumption that an inventory manager is a victim of his colleagues’ business decisions and plays only a limited role in formulating inventory results. Inventory management is not a stand-alone business process that occurs after other processes are complete. General News Inventory managemen

How Machine Learning is Transforming Industrial Production

DELMIA Quintiq

The question that seems to get asked more often than not is to talk about how many industrial applications we can name for machine learning. In that way, machine learning transforms an industrial operation into a system of systems that can get products to market faster at a lower cost so the company that owns it can remain competitive in its market and keep their customers happy by delivering the products they want. Industry Week confirms these issues.

Life Sciences Industry Inventory Optimization Health Check

Logility

One potential way to reduce costs without lowering the quality of healthcare is to optimize how much inventory is required and where that inventory is positioned. Minimizing the amount of inventory required to provide advanced healthcare reduces both working capital and obsolescence. A very powerful, yet under-utilized, tool to optimize all types of inventory across the extended life sciences supply chain is Multi-Echelon Inventory Optimization (MEIO).

Turn a Good Demand Forecast into the Optimum Inventory Plan

In the Supply Chain

The post Turn a Good Demand Forecast into the Optimum Inventory Plan appeared first on IT Supply Chain. Industry TalkBy Alex Achour (pictured). Senior Sales Engineer with ToolsGroup.

Inventory Metrics: From Insight to Action

Kinaxis

by Andrew Dunbar Over the last several weeks, this blog series on Inventory Management has explored the objectives and roles of inventory managers and outlined several of the improvement levers available to them. This post will discuss some of the metrics and analysis tools that an inventory manager needs to identify risk and opportunities and to make intelligent decisions to optimize the performance of their inventory.

The Inventory Accuracy “Confidence Gap”

Talking Logistics

Note: The following is an excerpt from “ Omni-Channel Logistics Leaders: 5 Key Insights to Improve Inventory Performance for 2019 ,” based on research conducted by Adelante SCM and LEGACY Supply Chain Services with input from nearly 100 supply chain professionals from retail, manufacturing, and logistics service providers companies in the United States and Canada. And it begins with improving their inventory accuracy. The Inventory Accuracy “Confidence Gap”.

Update on the Automotive Industry

Logistics Trends and Insights

The automotive industry has undergone quite the transformation from the days of Henry Ford and the Model T. With that, the industry is facing a number of challenges ahead, including a shift toward electric cars, tech embracement, plant closures—and now recovery from the coronavirus outbreak for automakers with supply chains reliant on Chinese production. These consumer-driven changes will require the industry to restructure itself in terms of volume, scale, and complexity.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

Putting a stick in the eye of the industry is hard work. When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. The industry has too many events. To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. In this case, the metrics are operating margin and inventory turns. Definitions: Provocateur.

Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Inventory effectiveness measures the process that delivers the right part to the right place at the right time, while minimizing investment and meeting customer requirements. Best Practices for Inventory Effectiveness.

Inventory Optimization 101 – Smart & Effective Inventory Management

ThroughPut

What is Inventory Optimization? Inventory Optimization is defined as a method of balancing the manufacturers’ capital investment constraints and goals along with the defined service-level goals over a large assortment of stock-keeping units (SKUs) while considering all demand and supply volatility situations. It includes the practice of having the right levels of inventory to meet your target service levels while keeping a minimum amount of capital locked for inventory.

Inventory Optimization 101 – Smart & Effective Inventory Management

ThroughPut

What is Inventory Optimization? Inventory Optimization is defined as a method of balancing the manufacturers’ capital investment constraints and goals along with the defined service-level goals over a large assortment of stock-keeping units (SKUs) while considering all demand and supply volatility situations. It includes the practice of having the right levels of inventory to meet your target service levels while keeping a minimum amount of capital locked for inventory.

Inventory Management Levers – Success Through Collaboration

Kinaxis

by Andrew Dunbar So you’re an inventory manager, and your CFO just asked you to reduce inventory by 10% before year end to free up some capital for next year’s big investment in R&D. But then you look at historical trends and see that lately, your inventory has been growing by 3% each quarter. Below are five levers that I believe should be available to an inventory manager to help them effectively plan and manage inventory.

Planned Obsolescence in the Durable Goods Industry

Logility

The consumer durables industry is experiencing significant supply chain threats, from product proliferation, intense global competition, evolving regulations and constrained supply brought on by a long period of sustained growth as shown in the graph below. Inventory Optimization

Improving the Transportation Solve: Jointly Optimizing across Inventory and Transportation

Logistics Viewpoints

Food & Beverage Industry Inventory Management Logistics Outsourcing Supply Chain Optimization Transportation Management Systems inventory Mananged Transportation optimization TMSWhen a company is looking to reduce their freight spend, while maintaining or improving service levels, there are two main paths they can take. They can buy and implement a transportation management system (TMS).