“We want to turn our inventory faster than our people.” James Sinegal
Good and necessary stocks are deliberately used to move faster towards the market or to enable a high level of plant utilisation. Safety stocks play an important role in absorbing the unpredictable market demand or delivery failures. However, some inventories only conceal process weaknesses and protect you today from the negative effects. Such weak points are often poor supplier performance, high reject rates, lack of planning or long replenishment times. Finding the golden mean is proving difficult for many companies.
At the latest when inventories are so high that liquidity is endangered and necessary investments can no longer be made, the problems must be dealt with at their root and process weaknesses optimized. In this way, inventories can be reduced sustainably. It is crucial not to jeopardize operational goals such as delivery performance. One of the main tasks of our inventory management team.