Inventory Management and Controls

During times of economic uncertainty, companies are actively seeking best practices for reducing inventory holdings throughout their supply chain. In fact, according to a recent study, 54% of respondents indicated that reducing inventory is the top action that their companies have taken in response to the recession. For many companies inventory is the biggest factor affecting their working capital levels. Companies are experiencing long lead times and significant volatility in demand, creating a greater awareness on managing inventory. In a period where cash management is so critical, inventory management is an essential element of effective short and long-term planning.

Identifying and implementing the best practices tools to accomplish inventory management is critical. Companies are looking for practical solutions to free-up working capital while sustaining customer satisfaction objectives. Sixty two percent of companies responding to the survey reported customer demand had dropped over the past year. This increases the importance of focusing on inventory if a company wants to avoid a spike in write-offs resulting from a build-up of goods that cannot be sold. Findings in the study show that 91% of companies indicate that they are involved in reviewing opportunities for improving inventory performance through process change. Another 61% of respondents say they have made, or have been asked to make, inventory-related technology recommendations within the past six months.

MainStream’s operational expertise allows us to guide our clients through this critical process. We will provide you with experience in managing inventory throughout your supply chain to improve, customer service levels, forecast accuracies and to use technology to build models to better forecast demand, inventory segmentation, inventory optimization, inventory replenishment and extended inventory visibility.