Inventory Optimisation


Balancing Customer Service with Inventory



Inventory is the lifeblood of supply chains. Properly managed, it drives revenue and efficiency for companies. It is all about the right product in the right quantity in the right place at the right time!

As the nature of supply chains changes, so must the policies used to manage inventory. Supply chain inventory practices involve managing the flow and positioning of inventory holistically across multiple stages in the supply chain, including suppliers and downstream partners.
As a result of this re-examination supply chain managers are discovering that many of their preconceptions about managing and positioning inventory are drastically wrong.


Inventory Misconceptions

  • Simplistic inventory policies work well. Companies that use ABCD inventory policies or simple weeks-of-supply rules frequently have 15% to 30% more inventory than they need, as well as lower customer service levels.




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