Inventory Optimisation
Inventory optimisation is about having the right stock in the right place at the right time.
Inventory optimisation is about having the right stock in the right place at the right time.
Product range proliferation, multiple stocking points, and long lead times for imported goods make this a complex task. Analysis of the status quo reveals frequent stock outs amongst popular products, while the ‘long tail’ of SKUs may have 12 months+ of stock cover.
At SCCG we tackle many inventory optimisation projects, either as part of a wider logistics strategy review or as a standalone performance improvement initiative. The result is a clear understanding of what inventory is required to support sales cost-effectively, and the steps required to achieve this delicate balance.
Analysis of current and historical stock levels against demand data yields valuable insights into inventory profile issues. We go beyond the narrow financial focus on stock value and examine which products are tying up warehouse capacity, while others are the source of poor availability and customer service issues. We reveal the underlying causes of poor performance, allowing these to be addressed.
We help you to define high-level and SKU-level inventory policy, understanding the trade-offs between unit-cost and minimum order quantity-based decisions versus the downstream impacts on space, working capital and service levels. We model, for example, single versus multiple stocking points with daily replenishment. We help implement recommendations through actions such as implementing improved demand planning, forecasting and buying processes.
At The Supply Chain Consulting Group, we understand the importance of effective warehouse operations and the impact it can have on the success of a business. Our goal is to help businesses achieve their full potential by providing the support and guidance they need to transform their warehouse operations.
With our Warehouse Consultancy services, businesses can feel confident in their ability to manage their warehouse effectively and achieve their goals.
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