Reduce stock level? Reduce stock level while ensuring security of supply? We explain how!

Optimal ratio for stock and delivery service

In the current situation, many companies are faced with the challenge of reducing stock levels without jeopardizing the security of supply for production and customers. The primary goal is to achieve an optimum inventory level, which ensures a high level of service with low capital commitment.

In many companies, basic inventory parameters such as inventory ranges, reorder levels, order quantities and ordering cycles are historically determined and are rarely dynamically adjusted to changing conditions. Uncertain sales forecasts, long replenishment times, seasonal and irregular fluctuations in demand, uneven utilization of production areas or poor quality in demand and procurement planning lead to a gradual build-up of inventories along the entire supply chain. In addition to increased space requirements, this leads to rising logistics and warehousing costs in the long term.

ifp consulting supports production companies in systematically reducing inventories and achieving an optimum balance between stock levels and delivery service. For this purpose, targeted analyses of inventories as well as logistics and disposition processes are carried out. This allows us to identify oversized inventories and to systematically work out the causes of the inventory increase. Based on this, we develop measures for sustainable inventory reduction, such as:

  • Targeted adjustment of the disposition parameters
  • Analysis of elementary warehouse key figures and determination of warehouse costs
  • Determination of the optimal order quantities
  • Determination of target inventory levels along the entire value chain
  • Optimization of demand assessment and demand forecasts
  • Supplier management to improve delivery reliability
  • Synchronization of scheduling, provisioning and production processes
  • Adaptation of procurement strategies
  • Examination of alternative concepts such as the delivery of goods via consignment stock or vendor managed inventory (VMI)
  • Implementation of a dynamic KPI dashboard to quickly identify excessively high or low stock levels
  • Implementation of sustainable inventory management

Talk to us, about your requirement for optimal logistics and warehousing.