Inventory optimisation: "Service v inventory"
Inventory optimisation: "Service v inventory"

Inventory Optimisation: "Service v Inventory"

Inventory policy

Deciding what products to buy, how much to buy and when to buy form the beginning of your inventory management process. By monitoring the inventory consumption cycle, along with the demand planning settings that trigger reorder or rebuy decisions, the inventory policy serves as a financial ceiling targeting a specific service level that your organisation. Adjusting inventory settings independantly is one aspect that can deliver better inventory performance, though our preference is to have a clear understanding of your service targets and align these settings to meet the targets.

Clearly defined customer service approach "Make strategy part of the culture"

Every member of your organisation needs to have a clear understanding of the company's customer service strategy and approach and be fully committed to delivering on their objectives. As the customer service level is reliant on every function of the organisation managing inventory touch points, the mechanical aspects of this process must be converted to a cultural dynamic where there is universal buyin for each and every member. It is an established expectation which is deeply ingrained within the organisations culture.

Understand your customers expectations with measurement



Scope of works

  1. Evaluate the existing inventory policy framework and process of development.
  2. Review closing inventory level in units and value
  3. Review of existing demand planning settings, processes and procedures
  4. Review of inventory performance against agreed metrics

Planned outcomes

  1. Identify opportunities to tighten the inventory policy development cycle
  2. Identify opportunities to reduce inventory levels to free up working capital.
  3. Propose improvements for the demand planning process and settings.
  4. Standardise the inventory performance metrics for the organisation.