Your advice for inventory optimization
Minimum inventories with high delivery capability with Bross & Partner
More competitiveness through inventory optimization
Inventory optimization is the ability to manage inventory. In other words, a company must have the right inventories so that the targeted service levels can be achieved and at the same time as little capital as possible is tied up in inventory. Volatility in terms of supply and demand must be taken into account. It is important to know that inventory optimization is an ongoing process that entails permanent observations and adjustments. The aim of inventory optimization is to cover fluctuating market requirements by controlling and planning the value creation processes.
Inventory optimization makes sense at any time, but varies from company to company. In order to reduce inventories in an economically sensible way, it must be known which factors have an influence on inventories. Since many companies have a lot of money tied up in inventories, these sums are not available for investment. In these cases, an inventory reduction can lead to a reduction in costs and, at the same time, to a release of capital. This alone shows you that inventory optimization always makes sense.
Inventory reduction in practice
Inventory levels should be analyzed, controlled and subsequently optimized on a daily basis. In order to find out the optimal inventory, a sales forecast must be created – and this must be done daily for each item. This is done by calculation with existing data. In this way, excess stock and excess orders are displayed. Shortages, on the other hand, can be identified via the sales forecast. Optimized delivery ensures that delivery capability and customer service improve and sales increase in the long term. Particularly important for inventory optimization is the dynamic safety stock, which is linked to factors such as service targets, sales risks, supplier risks and sales trends.
Optimal stocks with Bross & Partner
For many years, we at Bross & Partner have been supporting companies in inventory optimization. We offer valuable approaches in combination with advice on the latest software for inventory management. Let us explore ways together so that inventory optimization keeps/becomes your company competitive.
Your contact person
Dr. Florian Bross