Ultriva Newsletter

Positioning Inventory to Improve Productivity and Profitability

Posted by Cindy McGowan on Jan 11, 2016 2:51:09 PM

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Global manufacturers, from $200M+, face extraordinary risk without a firm control of effective inventory management. Supply chain professionals working with purchasing and procurement managers wrestle with practical daily aspects of inventory management, from determining optimal inventory levels, to selecting the best storage locations, to ensuring inventory accuracy.

All of these processes are designed to improve productivity and profitability through better inventory management. Ultimately this issue of forecasting, replenishment, and investment analysis lands squarely at a C-level decision-maker, often the CEO or CFO.

Today’s markets are in constant motion as customers create rapid-fire changes in demand. No matter how good the planning or how efficient the execution, without visibility into what is happening up and downstream, even multi-billion dollar, Fortune 1000, manufacturers are flying blind.

Only visibility helps solve the ongoing problem of disconnected planning processes that lead to mismatches between supply and demand that are not only costly but can lead to fulfillment problems due to out-of-stocks.

Once restricted to the province of supply chain managers, C-level executives have become increasingly focused on more accurately positioning inventory to match demand, providing optimal decisions on a continual basis to reduce supply chain costs, improve service levels, and increase profitability.

 “When you really look at the raw materials or the components that you are getting from your external supplier the big challenge is having the right part at the right place at the right time.” -Narayan Laksham, Founder 

 “Customers quite often have no idea where their inventory is in terms of the supply chain. They are making phone calls and sending faxes back and forth but they have no means of knowing, is it on a truck? Is it on a shipping dock? Is it not even accepted as an order yet?”

Butch Dority, Application Consulting Manager

 “Seeing changes in real-time impacts productivity and profitability. Seeing what part is in danger of stocking out when you open up your dashboard every morning is priceless. Customers just don't have their pulse on the inventory at all.”

Jacob Soucek, Account Executive, Inside Sales

 “If we lose control of the supply chain, leaders cannot make those decisions to make a business run effectively.”

Scott Stickles, Application Consulting Manager

 

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http://youtu.be/EtbOyuZAWBE

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Topics: inventory