What is effective inventory management?
Inventory management combines strategic and tactical capabilities to control the flow of goods from procurement to delivery. It involves defining inventory segmentation approaches, such as channel or customer-level business rules and service requirements and inventory planning parameters for stocking levels by SKU. It also includes the day-to-day inventory management in terms of receiving, moving, consuming and valuing inventory. The goals of inventory management include the following:
- Reducing carrying costs and improving cash flow.
- Striving for timely product availability and customer satisfaction.
- Enabling a robust understanding of product costs and customer-level and product-level margin analysis.
- Providing predictability in financial results by addressing variances in the supply chain.
- Deploying cycle count and physical count policies and procedures to gain confidence in physical inventory values.
Our supply chain inventory management services
At RSM, we provide data-driven inventory management solutions tailored to your business needs, helping you achieve optimal inventory levels and drive sustainable growth.
- Demand forecasting and planning: Leverage data-driven forecasting models to improve inventory accuracy and prevent overstock or stockouts.
- Inventory management process enablement: Address significant inventory variances and improve the accuracy of inventory value and cost of goods by deploying leading practices in material management.
- Inventory cost reduction: Minimize carrying costs by optimizing stock levels, reducing excess inventory and improving turnover rates.
- Warehouse and distribution optimization: Streamline storage space, picking strategies and distribution networks to boost efficiency and achieve cost savings.
- Supplier collaboration: Foster close supplier co-ordination and just-in-time (JIT) strategies to ensure timely replenishment and reduced holding costs.
- Technology-enabled inventory management: Use advanced inventory management systems, RFID (radio frequency ID) and real-time tracking tools to enhance visibility and control.
Our goal is to transform your inventory management from a potential liability into a strategic asset, driving efficiency and profitability throughout your entire supply chain.
