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Inventory Planning

Le Point de Vue de Quintiq


Are you paying attention to your inventory?
by Sriyani Rao - Social Media Community Specialist, Quintiq

Do you remember Hypercolor, the clothes that changed color with body heat? I do, and not just because of the novelty value. Initial demand for the clothes was so high that the company worked tirelessly to meet it. Then they overproduced, struggled to sell, and went bankrupt.

It’s a scenario we see time and again. Why? In large part, it’s because many companies don’t pay the right kind of attention to their inventory.

There’s a lingering belief that inventory is somehow unpredictable and behaves independently of the rest of the business. But it’s not true. If you incorporate inventory directly into sales and planning operations, and optimize it at every opportunity, you’ll have a strong grasp of your stock levels, save money and improve customer service.

Mastering the balance between low inventory and high performance is a challenge, but it’s one that needs to be met. If you’re new to the idea of inventory optimization, here’s some advice to help you reach your goal.

1. Base inventory on desired customer service levels
2. Be flexible
3. Use actual inventory levels

Click below to expand each advice

 


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In the consumer electronics industry, product shelf lives are short and, according to Gartner, the greatest margin occurs during a successful product launch. So it’s not...


The inventory replenishment practice of vendor-managed inventory (VMI) has provided retailers and suppliers with increased efficiencies and cost savings for years....


In most traditional ceramic production processes, finished product planning has adopted a make-to-stock approach that is determined more by large minimum batch sizes than by well-designed...


Here's your competitive edge
Discover:
- What should really be driving your inventory targets (Hint: It’s not just about demand.)
- A false step that leads to...

According to Aberdeen Group's, "Inventory Optimization Strategies for the Chief Supply Chain Officer," best-of-breed best-of-breed inventory optimization software is the...



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