Robert Garrison’s Post

Do you need more inventory? Almost certainly yes. And no. Inventory optimization is too often used as a euphemism for inventory reduction. And inventory reduction is too often perceived as risking increased shortages. However, the empirical data suggests that companies which struggle with shortages frequently have high overall inventory levels, while many companies with lean inventories don't necessarily have more shortages. The reality is that well managed supply chains maintain inventories at levels that avoid shortages and excesses simultaneously. Manufacturing capacity, working capital, even warehouse space, are not unlimited resources, so overproducing unneeded inventory can and does create shortages of needed inventory. So by all means increase your inventory. Just make sure it's the right inventory. And a good way of doing that might be by reducing your (unneeded) inventory. Welcome to inventory optimization. #inventoryoptimization #inventorymanagement #supplychain #workingcapital

Did you know overproduction and waste lead to over $160 billion in inventory losses each year? ⚠️📉 Discover how you can de-risk your supply chain and protect your bottom line: https://buff.ly/4gILb0y #InventoryLoss #InventoryManagement #SupplyChain

The decision to hold smaller inventories or larger inventories very much depends upon your company’s strategies, your capacity, and your supply chain capabilities. Here's a few thoughts on the importance of managing inventory. #inventorymanagement #operationsmanagement #supplychain

Supply chain constraints stemming from COVID-19 triggered significant shifts in demand, and access to, packaging supplies across various industries, as well as inventory management strategies. Learn more in our latest Packaging Quarterly Review: https://lnkd.in/epriKXCh #LincolnPerspectives

These days, businesses like yours are facing frustrating supply chain fluctuations — leading to excess inventory, stock-outs and lagging on-time delivery performance.   What does supply chain excellence look like in today’s market?   To overcome current challenges and lock in future success, supply chain professionals have to change the way they plan.   Buyers need to work closely with suppliers to secure products and deliveries, while demand and supply planners have to focus on long-term stability and an optimized inventory model.   Read our recent blog post at the link below to find out how you can optimize your organization’s demand and supply planning. https://lnkd.in/gdV6mphA #inventoryoptimization #supplychain #demandplanning 

Company size, growth trajectory, distribution costs and customer service needs are just a few of the factors businesses need to consider, experts told Supply Chain Dive. Shipping disruptions, demand swings and inflationary pressures have also influenced companies’ decisions in recent years. Here are the key reasons why some companies use a 3PL, while others handle their fulfillment in-house. https://hubs.la/Q02C6twd0

One of the biggest problems in Supply Chain Planning is Excess inventory, it is a common problem for several reasons: 1️⃣ Inaccurate Demand Forecasting: Overestimation: Businesses often overestimate future demand, leading to overproduction or over-ordering. Market Shifts: Sudden changes in customer preferences, economic trends, or competitor actions can leave businesses with unexpected excess stock. Poor Data: Outdated or unreliable sales data can lead to inaccurate forecasting and excess inventory. 2️⃣ Supply Chain Inefficiencies: Long Lead Times: If it takes a long time to receive orders, businesses may overstock to compensate, leading to excess inventory if demand drops. Minimum Order Quantities (MOQs): Suppliers often require businesses to purchase a minimum quantity, which can exceed immediate needs. Disruptions: Supply chain disruptions (e.g., delays, shortages) can result in over-ordering to ensure stock availability. 3️⃣ Promotional and Sales Issues: Unsuccessful Promotions: If promotions don't generate the expected sales boost, businesses may be left with surplus inventory. Optimistic Ordering: Over-ordering in anticipation of sales or discounts can backfire if demand doesn't materialize. 4️⃣ Product-Related Factors: Seasonality: Seasonal products may have leftover stock outside their peak sales period. Short Lifecycles: Products like technology or fashion items can quickly become obsolete, leaving surplus inventory. Quality Issues: Defective or unpopular products may contribute to excess stock. ⚠ The Consequences of Excess Inventory ⚠ Tied-up Capital: Money spent on excess inventory could be better used elsewhere. Increased Storage Costs: Warehousing excess stock leads to higher holding costs. Obsolescence: Products may become outdated or expire. Markdown Pressures: Businesses may need to sell at a loss to clear excess inventory. Read this PDF we have prepared to guide you on how to avoid it. Or you can use our Inventory Optimization Tool to avoid this issue Inventory https://lnkd.in/din3wUfG How much Excess Inventory are you Currently Carrying? #excessinventory #excessstock

How good at inventory optimization can you get? That may seem an odd question. How about "how close to optimal are your inventories?" That's not the same question. Strangely, most supply chain managers are perhaps more comfortable with the first question than the second. Supply chain is difficult. Things are changing all the time. You're putting all your efforts into keeping inventories in balance and most of the time the rest of the organisation is fairly happy with them. So you're doing a good job, right? You may well be. But actually, without knowing how close to optimal your inventories really are, it's very hard to say. We commissioned some research some months back that showed no obvious correlation between how good organisations thought they were at inventory optimization and objective measures of inventory performance (link in the comments below). If you really want to know how good you are, best start by calculating how close to optimal your inventories are. #inventoryoptimization #supplychain #workingcapital #inventorymanagement

Target deepens bets on supply chain, inventory management https://bit.ly/43eP46S

Embrace Volatility Learn how to adapt your inventory policies and supply chain planning to stay ahead in an ever-changing landscape. White Cap’s insights are just a click away 👉 https://bit.ly/3JUvwvG #SupplyChainOptimization #Distributors #InventoryOptimization