Inventory Management
Low stock leads to slow delivery times and poor customer service.
Too much stock clogs up the warehouse and ties up capital.
We’re here to help you balance customer service and profitability through excellent Inventory management!
The Challenges of Inventory Management
For Small to Medium Enterprises, managing inventory can be a massive headache.
Whether due to a lack of resources, skills, or systems, poor inventory management has a significant impact on overall performance and service, negatively affecting customer service or tying up capital.
These issue are reflected in sales and overall profitability.
When Inventory Management function is not performing well, the typical impacts you’ll see are:
- Poor customer service performance due to stock outs.
- Too much old/obsolete stock (and warehouse getting clogged up).
- Higher than expected investment in inventory (stock).
- Low turnover of inventory (stock turns).
Industry Benchmarks
Here are the industry standard benchmarks for finished goods stock turns:
- Pharmaceutical sector: Above 8
- Manufacturers: Above 15
- Suppliers to Retail: Above 10
- Industrial Suppliers: Above 9
- Distributors: Above 8
- Food and Beverage (Ambient): Above 20
- Food and Beverage (Chilled & Frozen): Above 18
If you’re not close to these numbers, if you’re overstocked, or your delivery times are slow, we can help you identify and solve the underlying problems.
SME Inventory Management Audit
Our SME Inventory Management Audit is designed to identify your major inventory issues, the root causes, and provide you with guidance and a roadmap to better performance.
Conducted within 2-3 weeks at a cost of under $10,000 + GST, our approach will give you the following benefits:
- Inventory ABS analysis to establish through-puts and criticality of products.
- Review of forecasting and inventory management processes and systems.
- Review of Supplier reliability impact on inventory holdings.
- Review of demand offtake and seasonality.
- A tailor made Key Performance Indicator report to manage Supplier relationships moving forward.
- A customised roadmap to improved inventory performance.
- A 2-hour workshop with selected staff to explain and impart the performance improvement roadmap.
- Membership to our 12-month online Supply Chain Education Program (valued at $800) for up to four staff.