The path to optimal inventory management


How can you get your stock levels under control? This roadmap by Supply Chain Media and Slimstock visualizes the obstacles and their solutions on the path to optimal inventory management.


ASSORTMENT


Ever-expanding product ranges


‘Jungle’


 Conduct ABC/XYZ analysis  Create an assortment index  Establish rules for phasing in/out  Plan a monthly review to stay on track


Unreliable basic processes


MASTER DATA


 Ensure the data is defi ned clearly


 Make sure the organization appreciates the importance of accurate data


 Allocate responsibilities (gathering, enriching, checking)


‘Potholes’


 Determine the bandwidths for management by exception  Set up a review period


Operational muddle PARAMETERS  Clarify the company strategy


 Translate the company strategy into an inventory strategy and then business rules


 Execute the business rules and optimize operations  Monitor continuously based on KPIs


‘Swamp’ No stock, no deal


INVENTORY MANAGEMENT


 Determine the right methodology for each SKU


 Introduce proactive, dynamic inventory management  Support inventory management with: • Clear processes • Advanced tooling


‘Crossroads’


SUPPLY CHAIN COLLABORATION


A complex supply chain and no plan


 Analyse which parts of the chain can be optimized


 Agree on the common direction and goal  Assign tasks and responsibilities at the right level


‘Bridge building’


 Initiate periodic meetings with chain partners at both commercial and supply chain management level


• Well-qualifi ed people


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SUPPLY CHAIN MOVEMENT, No.40, Q1 2021


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