Inventory Management

“We want to turn our inventory faster than our people.”  James Sinegal

 

Good and necessary stocks are deliberately used to move faster towards the market or to enable a high level of plant utilisation. Safety stocks play an important role in absorbing the unpredictable market demand or delivery failures. However, some inventories only conceal process weaknesses and protect you today from the negative effects. Such weak points are often poor supplier performance, high reject rates, lack of planning or long replenishment times. Finding the golden mean is proving difficult for many companies.

 

At the latest when inventories are so high that liquidity is endangered and necessary investments can no longer be made, the problems must be dealt with at their root and process weaknesses optimized. In this way, inventories can be reduced sustainably. It is crucial not to jeopardize operational goals such as delivery performance. One of the main tasks of our inventory management team.

Our approach  

 

Our portfolio optimisation is carried out on two levels, whereby we always pursue a holistic approach with a consistent target orientation. We pay attention to a short-term portfolio reduction to ensure liquidity. In doing so, we take into account the applicable benchmarks and, with the help of our portfolio tool, focus in detail on the

consumption values and inventory range. The experience from other companies helps us to classify your company and to uncover improvement potentials.

The execution of an inventory simulation, in which we determine your target inventory levels based on industry-specific best practice and estimate a realistic inventory development, gives you the opportunity to set realistic targets and consistently implement them.

In addition, our team identifies potential clusters. This is based on the analysis of the existing structure. We supply you with the appropriate measures for (short-term) inventory reduction.

This ensures that other operational target areas, such as delivery reliability and delivery capability, do not deteriorate. Our candidus Management Consulting will carry out a sustainable inventory optimization by holistic optimization of the order-to-cash process.

Our approach also includes the optimization of processes & (IT) systems such as S&OP planning, supplier management and production control with capacity planning and receivables/liabilities management.

Range of services for your organisation:  

 

As our customer, you benefit from our knowledge and expertise. We ensure a short-term reduction in inventories while maintaining the same delivery performance. We also strive to achieve a sustainable reduction in inventories when we work with you.

You can expect us to improve delivery reliability and delivery capability through inventory optimisation. We uniformly implement a market-driven dimensioning and positioning of inventories in the production/logistics network.

If there is a cost reduction potential in the area of warehousing and logistics, we will analyse it and implement it for you on request.

In addition, you can expect us to optimize your net working capital.

Let us optimize your inventory management together. Contact us and benefit from the many years of experience of our employees in inventory management.

We will be happy to support you with both the detailed concept development and the implementation.

Our solutions