A significant factor in creating an efficient supply chain is derived from thorough and actionable insights on the supply side, with regard to inventory and warehouse usage. Deeper analysis, planning and management of inventory unlocks a series of physical advantages with stock and space, alongside financial rewards.
Attain new heights in optimised inventory
Providing the right inventory in the right quantities at the right time is a deceptively simple concept at the core of inventory planning. Without the optimal planning and correct analysis of stockholding levels, any excess materials and parts held are basically 'unproductive cash assets': they are not contributing to the health or profitability of your company.
Volume, value and seasonal demand underpin decisions about how a manufacturer deals with their inventory. Reviewing these data points helps guide future decisions on planned inventory. It is a continuous process that alters according to production processes, product and market demands, and company strategy. Improvements derived from thorough analysis and better planning contribute to more a more robust supply chain, leaner inventory, more efficient stockholding, and ultimately superior customer service and profitability.
— Demand variations, and safe stock level
— Stock cycling improvements
— ABC analysis of SKUs
— Identifying and delisting obsolete stock
— Balancing holding costs against purchasing costs
— Pinpointing optimal reorder quantities
— Increased working capital flow
— Less demand for leasing production and warehousing space
— Reduced provision for stock wastage, write-offs, and obsolescence
— Improved overall profitability
— Competitive advantage through supply chain efficiency
— Optimised warehousing (less space needed for stockholding)
— Reduced transport movements (consolidate reordering and delivery frequency)
— Production line activity streamlined (picking & packing, goods replenishment)
— Maximising parts assembly and production line process
— Effective tracking, tracing and measurement of parts and usage.
Acorn provide a custom analysis of your inventory based on your particular inventory and planning needs. This can include ABC analysis (materials and parts based on consumption), XYZ analysis (based on stock value), SOS analysis (seasonal, off-seasonal reporting), HML analysis (high, medium and low pricing), SDE analysis (scarce, difficult or easily sourced items), GOLF analysis (Government, Ordinary, Local Foreign suppliers), FSN analysis (fast, slow or non moving items), and VED analysis (vital, essential and desirable availability impacting on stock-out). A complete inventory analysis is the foundational step in providing efficiencies in your supply chain.