Inventory Management And Optimization
What’s the impact of inventory
management and optimization?
WHY INVENTORY MANAGEMENT & OPTIMIZATION?
Improved Cash Flows
The free up of cash allows improved cash flows. The optimization of inventory levels considering several factors and applying statistics makes it possible.
Less Obsolete Inventory
Inventory optimization contributes to a reduction in obsolete inventory. This means less losses in your P&L or in your budget. This means greater levels of profitability.
Improved Service Levels
Optimization of inventory levels leads to a sweet spot where service levels are higher while inventory levels are lower.
Higher Net profit
Cost reduction obtained through the optimization of inventory levels together with reduced inventory losses due to obsolescence leads to a greater net profit.
Less Material Shortage
Inventory optimization and higher service levels leads to less stockouts. This increases OTIF. This is taking your supply chain to higher levels.
This metric is a great reflection of how your supply chain is performing. By improving your On Time In Full you are taking your supply chain to higher levels and with it, to greater levels of profitability.
- There is a range of solutions to help you with inventory management and optimization.
- The spectrum goes from Excel, Access, to more complex solutions including Integrated Business Planning.
- It is essential to understand your needs and how each solution fits them.
- We can help you throughout this process to ensure you achieve the highest ROI.