Reduce inventories? Reduce inventories 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 inventories without jeopardizing the security of supply for production and customers. The primary objective is to achieve an optimal inventory level, which ensures a high level of service with low capital commitment.
In many companies, basic inventory parameters such as inventory ranges, reorder points, order quantities and ordering cycles are historically determined and are rarely dynamically adjusted to changing conditions. Uncertain sales forecasts, high replenishment lead times, seasonal and irregular demand fluctuations, uneven utilization of production areas or poor quality in demand and procurement planning lead to a successive 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 bringing stock levels and delivery service into an optimal relationship. For this purpose, targeted analyses of inventories as well as logistics and disposition processes are carried out. In this way, oversized inventories can be identified and the causes for the inventory increase can be systematically worked out. 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 for quick identification of too high or too low inventories
- Implementation of sustainable inventory management
Talk to us, about your requirement for optimal logistics and warehousing.