Inventory is a critical element to most businesses, but different functions within a business have different perceptions of how much inventory there should be. Sales tend to want large volumes of inventory to guarantee service; finance want the inventory minimised to reduce working capital, and operations want sufficient raw material to keep equipment operating efficiently. In addition, all inventories need to be of the right quality, positioned in the right place, at the right time, and in the right quantity. The difficult task of inventory management is to balance and satisfy all of these needs.
Is your inventory optimised?
|All too often companies use ‘rule of thumb’ techniques for inventory management that do not stand up to scrutiny. These techniques are not scientific, or factual, and are often based on perception or intangible experience. In many companies this leads to overinflated inventory holding, ‘squirrel’ stocks and conflicting ideas between sales, finance, operations and supply chain as to how much inventory is truly required.|
A fact-based inventory policy can be developed in any business
|There are proven methodologies and formulae that can optimise the level of inventory against all of the service, working capital and equipment utilisation criteria. These policies can be developed and introduced with consensus from all functions; they can demonstrate clear rationale and logic behind the resulting inventory levels, and they can balance and satisfy all of the needs of the business. Our inventory management consulting team is highly skilled in inventory policy development. We have considerable knowledge and experience in defining policies, formulae and calculations that can ensure inventory levels are fully optimised, justified and balanced with all the functional needs. Have a look at the typical inventory management areas considered by our consultants to optimise inventory performance or contact us now to discuss your inventory management needs.|
Additional Inventory Case studies:
|“BUILT/ are confident that Gideon Hillman Consulting have provided us with a thorough analysis of our current and anticipated future facility needs.”
Head of Operations
|“I’m delighted with the approach and models that the Gideon Hillman Consulting team delivered…not only do we now have the process, rationale and models to periodically optimise our inventories, but I can also use the models as a key management tool. I am now able to demonstrate and manipulate the links between inventory levels, service targets and ultimately operating cashflow.”
Global Spares Director – ECEPS Services
|“The team at Gideon Hillman Consulting provided us with a meticulous analysis of design layouts for the internal warehouse and operational areas within our new facility, re-designing the internal facility layout to optimise current and future capacity, which in turn increased Equip’s overall operational efficiency.”
Finance Director – Equip Outdoor Technologies
“Working with Gideon and his team was very straight forward. I highly recommend their services to anyone looking to optimise their storage system.”