Inventory Management and Optimization
WHY INVENTORY MANAGEMENT & OPTIMIZATION?
– 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.
– 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.
– Improved Service Levels: Optimization of inventory levels leads to a sweet spot where service levels are higher while inventory levels are lower.
– Increased OTIF: 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.
– 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.
– Less Material Shortages: Inventory optimization and higher service levels leads to less stockouts. This increases OTIF. This is taking your supply chain to higher levels.
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.
USM Supply Chain – we help companies increase their profits by cost reduction through strategic sourcing and supply chain transformations.
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