| Where's the Money? It's trapped in your supply chain. |
by Robert Bowman, Global Logistics & Supply Chain Strategies, September, 2007
It's been reported from the Hackett Group that there is over $1 trillion tied up in excess working capital from 500 of the largest companies across America and Europe. The primary culprit in this working capital number is slow-moving inventory.
Most companies are failing to make the basic connection between finance and SCM. Stephen Payne of REL comments, "It's difficult to understand why companies are not taking advantage of the opportunity to drive improvements in working capital."
Where do these opportunties for improvement exist?
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Working Capital Optimization in the Supply Chain: Achieving End-to-End Efficiencies |
by Research Brief, Aberdeen Group, July 2008
In this recently released Research Brief from Aberdeen Group, conditions and methods for improving the performance of working capital are provided. Highlights include that 50% of best-in-class performers employ a supply chain visibility and an inventory optimization solution.
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Technology Strategies for Closed Loop Inventory Management |
by Nari Viswanathan, Aberdeen Group, April, 2008
Each year, Aberdeen Group researches the strategies best-in-class companies are using to enable their performance. In their annual report on inventory management, Aberdeen investigates the relationships that exist with best-in-class companies with how they manage their inventory. Included with the report, are actionable items under-performing companies can take to improve their business results.
"Inventory has been and continues to be the lifeblood of supply chains, especially in times of economic difficulties. Properly managed, it drives revenue and efficiency for companies by reducing working capital with fewer inventories in stock while simultaneously increasing customer service levels....Inventory management has become a mainstream planning activity with 58% of companies indicating that they have had an initiative in place for more than two years."
Read more: Aberdeen Group Research Paper |
| Inventory optimization is different than traditional supply chain planning |
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From Supply Chain Digest, by SCDigest Editorial Staff, September 23, 2008
This white paper provided by SCDigest.com explains the difference between doing things the same way they've been done for the past twenty years and improving business results with inventory optimization.
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CALL TO ACTION |
 Effectively managing inventory and servicing customers is now more important than ever. Inventory optimization can help your organization free up cash that's tied up in inventory and create a sustainable environment for reducing inventory while maintaining critically high service levels.
To learn more about inventory optimization, or to discuss your potential for improved business results, then please contact me at any time.
Richard Murphy
TCLogic
317-464-5152 x107
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