Inventory Management
Excess inventory ties up capital which can otherwise be used for investments for growing your business.
With shorter product life cycles, excess inventory increases the risk of obsolescence significantly. Excess inventory is commonly caused by the combination of poor sales and operations planning, overstated master production schedules, engineering changes, shortages, long cycle times, large order quantities, overzealous buying, early material receipts and poor scheduling. From our experience, most companies consistently carry between 25% to 40% more inventories than needed.
The key challenge in any inventory reduction program is to achieve an optimal inventory level across the supply chain and yet achieve reduced lead times, increased order fulfilment and maximised production capacity while reducing material shortages.
The LCA Difference
Working with your supply chain team, LCA will help you determine “where“, “what” and “how much” inventory to hold by thoroughly evaluating the potential for:
- Reduced demand variability
- Improved forecast accuracy
- Adjusted service levels
- Inventory profiling
- Reduced order sizes
- Reduced manufacturing lot size
- Reduced supplier and manufacturing leadtime
- Consolidated stock holding points
- Reduced supplier variability
Successful Projects
View a sample list of projects we have successfully completed for our clients.