5 Steps to Reducing Your Inventory Levels:
Reducing your inventory levels is the first step in the right direction to successful Inventory Optimisation. Below, we have outline the 5 Key Steps you can take to reducing your Inventory Levels:
Reduce Lead Times
Look at your lead times to see where time can be saved.
This will allow you to decide which parts of your processes could be made shorter etc.
Demand forecasting is another step towards successful inventory optimisation.
Correctly forecasting will allow you to only receive the inventory that you need
Prioritise Stock/Eliminate Obsolete Stock
Look at you items and decide which ones are selling in high quantities and look at the ones that are slow-movers.
From this, you are able to accurately forecast your stock to meet your demand.
You can also maximise space within your facility to better cope with more popular lines
Review Suppliers Regularly
Look at your suppliers and decide if they have inefficiencies that are impacting on the performance of your business.
By Communicating with them, you are able to either rectify the problems that are occurring or are able to change supplier.
Understand How Much to Order
The decision of how much to order is based on 3 Key Factors:
– Customer Demand
– The Cost of Placing an Order
– Holding Cost
Cost factors need to be considered in order to appropriately understand how much you need to order.
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If you would like help and support in your inventory optimisation, contact one of our Supply Chain Consultants today….