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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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The Sales and Operations Planning (S&OP) process is a vital synchronization tool in supply chain management. In most companies, the monthly S&OP meeting brings executives...


Over the last dozen years, the bottom-line benefits of Inventory Optimization solutions have proven to rival established activities such as network design, transportation...


Basing your batches on the actual chemistries and tolerances that lie behind each grade.
If you produce large numbers of small orders with overlapping chemistries,...

The world is changing rapidly and in the middle, if not even the driver of this process, is the automotive industry. Globalization and individualization megatrends...


Inventory optimization's business mission is to right-size an organization's inventory investment to meet a given service target. But what approach most helps supply chain...



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