Inventory Optimization
Inventory Optimization
improve your overall supply chain performance
Even after the COVID-19 pandemic, the geopolitical situation remains tense, and additional current challenges increase the need for action to improve the supply chain performance and efficiency.
Current Supply Chain Challenges
Rising Risks
Unexpected Delays
Cost Control
Rising Freight Prices
Data Continuity
A Strategic Shift is Taking Place
Recent studies highlight that companies have increased inventory levels to counter supply chain disruptions caused by limited transparency and planning capabilities. However, they have realized that continuing to increase inventory levels is not a sustainable solution. Over the next three years, businesses are strategically shifting to reduce these levels by implementing advanced planning capabilities to enable an efficient inventory management.
Effective Inventory Management Now Needs to Be A Top Priority for Your Business and Operations
Excess and shortage of inventories jeopardize the financial health and resilience of your company, especially in times of economic downturn and ongoing global crises. The following pain points show why effective inventory management needs to be a top priority for your business and operations. Detecting and removing the drivers will be a key lever and essential enabler for improving your supply chain performance and overall competitiveness.
WORKING CAPITAL
Excess stock ties up precious working capital
Profitability
High inventory holding costs negatively impact your profitability
Efficiency
Excess stocks cover operational inefficiencies and hinder continuous improvement
Revenue
Lack of right inventory puts revenue and market share at risk
Responsiveness
High stock levels impede fast response to market changes
Camelot's Solution: Comprehensive Analysis of All Dimensios
To identify and analyze all potential inventory drivers and their root causes, every relevant dimension must be considered — from governance to the quality of the relevant data. To ensure a holistic analysis, we developed an inventory optimization approach that combines our supply chain process expertise with specially designed data analysis.
Our approach leverages advanced data analytics to uncover patterns, trends, and discrepancies in inventory data, and pairs these insights with findings from in-depth interviews. By combining comprehensive qualitative reviews of supply chain governance, processes, and metrics with robust data analytics, we identify improvement opportunities and root causes. This integrated method results in a detailed, actionable roadmap for sustainable inventory optimization.
Analysis
Inventory Coverage
IDENTIFICATION
Dead Stock
PARAMETERIZATION
Safety Stock
ANALYSIS
Replenishment Lead Time
CHECK
Master Data Quality
REVIEW
Process Efficiency
Your Benefits
Improve Material Availability
Identify SKUs at risk of stockout and prioritize based on financial risks and customer impact
Reduce Operating Costs
Reduce shipping and rush costs by ensuring materials are stocked and strategically located
Release Working Capital
Identify planning improvements to optimize inventory and lower working capital
Contact Me to Start Your Inventory Optimization!
* Source: McKinsey Annual Supply Chain Pulse Survey 2023
