Ten Ways to Reduce Inventory, While Maintaining or Improving Service
- Topics:
- Inventory Management
- Source:
- The Progress Group
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Overview: Inventory is a significant and visible asset in most companies - often the largest. Executives and shareholders have focused on inventory levels for years, but it has frequently been reduced arbitrarily, without a full understanding of supply chain implications. This paper discusses approaches to sustainable, and appropriate, inventory reduction. The inventory reduction crusade is set into motion. The key to sustainable reductions is to focus on the input variables. The overarching goal of the organization is to maximize long-term profits. This article main focus is upon the ten approaches which have been discussed in detail. Some of these include pareto your inventory, reduce replenishment lead times , revise order cycles/quantities, Improve your forecasting and many more. Thus inventory is the measuring stick of entire supply chain. It reflects the agility of your supply chain. The only sustainable way to reduce inventory is to improve supply chain processes. To do this, organization needs an end-to-end view of the entire chain.
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Format: HTML | Date: Jul 2000 | Pages: 1
