Companies invest millions in inventories. But do they get maximum return on the investment?
There are reasons why they don’t:
- They don’t know where to position inventories in the value chain so they put inventories where they do not serve or even make things worse. And they do not put enough where they would really help.
- They use simplistic rules to decide how much inventory they need, leading to useless investments on some products and availability issues on others.
- They spend fortunes on inventory reduction not knowing where to start. And neglect the real levers they have to improve inventory efficiency.
- They believe those who say that all inventories are bad and find themselves vulnerable to the first unexpected event.
Based on Möbius’ 20 years of supply chain experience, Luc Baetens will share a general approach to assess the efficient use of inventories and drive improvements in a pragmatic way.