Tuesday, July 19, 2016

Inventory Management - 3 questions that you should know the answer to... | Supply Chain Action Blog

Inventory Management | Supply Chain Action Blog: "If you can’t answer these 3 questions in less than 10 minutes (and I suspect that you can’t), then your supply chain is not the lever it could be to drive more revenue with better margin and less working capital: 1) What are inventory turns by product category (e.g. finished goods, WIP, raw materials, ABC category, etc.)? How are they trending? Why? 2) What is the inventory coverage? What will projected inventory be at by the start of a promotion or season. Within sourcing, manufacturing or distribution constraints, what options do I have if my demand spikes or tanks? 3) What proportion (and how many) of your customer orders (or margin or revenue) shipped at 99% on-time and in-full? How many at 98%? And so on . . . Do you understand the drivers?"