10 inventory forecasting issues

Forecasting process – what is the current forecasting process and who is involved in setting targets?
Information technology – identify the current IT system(s) employed by the company and are regular upgrades and improvements taking place?
Collaboration – does collaboration take place between the various internal and external partners?
Items overstocked and out of stock – Which items [...]

Cost cutting: Focus on long term goals

With liquidity tightening, companies are increasingly looking for ways to cut spending. In a recent survey of Fortune 1,000 companies, 80% of respondents said that they look at supply chain departments for their cost cutting initiatives.  However, cost cutting in supply chains requires the right mindset. As with any crisis, cool heads are required to [...]

10 ways to reduce inventory cost

Determine cycle stock.  Understand average inventory and reduce safety stock. Reduce overall lead time and lead time variability.
Understand total cost. Evaluate holding cost and have a clear understanding of real potential savings with bulk purchases.
Improved warehouse layout. Optimize warehouse layout and evaluate the potential of using narrow aisle handling equipment.
Rationalize SKUs. Eliminate low yielding SKUs [...]