More sales don’t always translate to more profit for the company.One sure shot way of ensuring a healthy jump in profitability is by ensuring right inventory management practise. Knowing what’s in your inventory and how to control it is good for everyone’s business.If you are a supplier, retailers want you Read more…
Companies are not aligned on the strategy cross-functionally. It is impossible to drive great tactical outcomes if you are unclear on the goal. If the goal is to meet the budget objectives, the organization will never maximize the opportunity within the value chain. While companies almost unanimously state the supply chains Read more…
It is popular these days to talk about assurance of supply. More often than not, manufacturers rely on components and services from all around the world for the continuing smooth supply of their products and services. A company’s reputation hangs on its reliable delivery to customers, but assuring this ongoing Read more…
In Ironman Triathlon there are 3 events – Swimming, Cycling and Running. Total performance judged the winner, not by a single score in a single event. Because the athlete must do well in all events, he has little opportunity to perfect any one event. A contender trying to improve performance Read more…
In our financial statements, inventory appears on the asset column. However, too much inventory actually blocks flow and sales. So how much inventory is really required? The lowest amount of inventory that can bring in satisfied customers.The way to know if your definition of ‘the lowest amount’ is to compare Read more…
The definition may help you choose the right questions next time you ask a prospective candidate. Or it may help you understand which attribute you can make even stronger. Good inventory manager means being a good planner, coordinator and controller. All rolled into 1!
The idea that a company that practices pull supply chain methodologies will suddenly enjoy massive inventory savings and replenishment nirvana can be as flawed as the belief that the company that practises push supply chain methodologies will maximise sales and freshness in stores. If you only use supply-side/ push methodology, your Read more…
Demand uncertainty and supply rigidity often create inventory shortages. The immediate consequence of inventory shortages might be significant lost sales and revenue ; however, the impact of stockouts cannot be fully evaluated without understanding how inventory shortages influence long-term customer behaviour. In practice, the most common tactic for preventing stock outs Read more…