Inventory is a crucial component of working capital management, that said, managing inventories is often one of the least glamourous roles in the business; any stock-outs and everyone knows about it, any excess or obsolete stock and something of a ‘blame game’ may ensue.
Inventory management is fundamentally dependent on cross-functional processes; decisions on core parameters and ways of working have strategic implications. Management KPIs and incentives need to be aligned to support coherent supply chain management.
Talk to an expert supply chain consultant
"OP2MA played a crucial role in responding to the immediate challenges brought on by the Covid pandemic and the subsequent reshaping of our operations and depot network in order to deliver material cost savings for the long-term."
Andrew Hogley
CEO
British Wool
What we do
Together with our OP2MA capability framework, we review planning and management processes, organisational design, and systems configuration, including:
Item stratification and how this aligns with business priorities
Economic order quantities and the balance between the purchasing process and minimising total costs
Safety stock management and the key drivers of demand and supply variability
Sourcing strategies
Performance management; inventory availability, excess and obsolete stock, and the controls on inventory levels
The Result
Optimising inventory is a continual process; embracing efficient inventory planning and analysis will allow the business the potential to benefit from:
Increased sales and enhanced customer satisfaction
Improved cash flow
Reduced working capital
Reduced warehouse footprint and associated storage costs
