Inventory Optimization

Achieving a balance between product availability and storage costs in each product group is one of the challenges of active inventory management. However, in our experience, orders are often placed without considering optimal order quantities. There is also insufficient staff capacity in most companies for comprehensive, long-term inventory optimization.

 

Sustainable reduction of inventories & release of tied-up capital

What often takes place is short-term, internal, partial optimization, which does not achieve long-term results. Ultimately, this is because insufficient resources mean that inventory drivers cannot be identified and addressed.

This leads to excessive inventories, unnecessary capital commitment and the masking of any procedural inefficiencies.

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Over the course of many projects, we have worked with our clients to achieve significant potential by reducing their inventories. As an implementation-oriented consultancy, we help you realise your potential and reduce your inventory for the long term, increasing your profits, whether in industry or in trade.

 

Icon - How do we operate in inventory optimization?

How do we operate in inventory optimization?

Inventory optimization varies with the requirements of an individual project. Basically, the optimization of the inventory consists of a 4-step approach, which consists of an as-is survey, weak point analysis, target conception and realization of the determined action plan.

Our 4-step approach for sustainable reduction of inventories & release of tied-up capital

The first step is a comprehensive analysis of the current situation along the entire supply chain. We group current inventories by material type and achieve transparency in terms of respective security stocks and defined levels of delivery service. We then specify the current organizational structures and underlying processes, particularly sales and production planning and the respective responsibilities.

Based on the findings of this analysis, we work with you to identify inventory drivers and answer the following questions, among others:

  • Can sales processes relevant to inventory, planning and production be more closely integrated?
  • Can your planning methodology, and thus the quality of your planning figures, be developed?
  • Can your current security stocks and/or batches be aligned more to your customers’ needs?
  • Are internal responsibilities for inventories clearly defined?
  • Do your current procurement processes and the associated replenishment times have potential for optimization?

We work with you to define strategies which are suitable for optimizing your inventory and developing realistic inventory reduction potential. We also define requirements for individual inventory management for each product group, as well as adjusting levers along the entire supply chain to ensure both short-term and long-term implementation of the identified potential.

As an implementation-oriented consultancy, we not only develop the road map and action plan for targeted potential realization, we are also more than happy to carry them out for you in full.

Our inventory expert

Patrick Lepperhoff

Principal

patrick.lepperhoff@inverto.com Contact

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