Inventory Strategy and Management

When it comes to optimizing inventory, the questions are many: What is the right level of inventory? At what point in the supply chain do we keep inventory? How do we know what is optimal? Are we prepared for seasonal shifts? Are we prepared for “black swan” or unforeseen events?

Enterprises that follow a conventional single-stage, single-item inventory optimization model that looks at each SKU and stock location will be out–of step—and perhaps out of stock—in today’s global, interconnected business operations landscape. The result: frequent stock-outs, overstock, unhappy customers and blocked working capital.

Our Approach

GEP uses a multi-echelon approach toward inventory management to enable today’s global, interconnected business operations to optimize inventory levels and improve supply efficiency.

Our comprehensive inventory management services encompass:

  • Inventory segmentation
  • Inventory planning
  • Replenishment services
  • Material optimization (daily, weekly, monthly)
  • Finished goods, raw material, work-in-progress, and maintenance, repair, and operation inventory planning
  • Kanban/two bucket system implementation
  • Just-in-time implementation
  • Inventory cost accounting
  • Warehouse operations optimization

GEP’s Supply Chain Solution Offerings

GEP can help establish efficient and flexible processes for inventory planning and management by curating suitable inventory models aligned to product types. Optimize portfolios (above and below the skin) to lift margins and return on working capital. Our key offerings in this area include:

  • Inventory segmentation
  • Inventory optimization
  • SKU rationalization
  • Inventory targeting managed services
  • Master data management

Our experts can devise an improvement plan to reduce working capital and increase inventory velocity. We’ll help you capture every available demand opportunity while optimizing the use of cash to fund operations.

Remember, having the right products readily available is critical to capturing demand while keeping inventories low. When items are ready “just in time,” they aren't sitting idle and taking up space, costing money and, possibly, becoming obsolete. What's the impact?

  • Improved working capital to maintain desired service levels
  • Optimized inventory and replenishment policies by SKU
  • Increased inventory turns
  • Improved or maintained service levels, fill rate, and other metrics corresponding to increase revenue
  • Reduced distribution, expedites and procurement expenses
  • Reduced raw material spend

What to Expect with GEP’s Inventory Strategy and Management

Key Benefits of MEIO

Multi-Echelon Inventory Optimization (MEIO) can help:

  • Align inventory with customer demand
  • Improve inventory turns
  • Reduce unnecessary storage and handling requirements
  • Increase sales by eliminating stock-outs
  • Eliminate excess and obsolete inventory
  • Improve customer service levels
  • Reduce the need to expedite production and transportation
  • Multi-echelon inventory optimization (MEIO)
  • Cost-effective postponement strategies
  • SKU rationalization
  • Optimization of all inventory components, including cycle stock, safety stock, raw material, work-in-process and finished goods
  • Strategic use of Vendor Managed Inventory (VMI)
  • Enhanced supplier intelligence for precise inventory planning and zero out-of-stock situations
  • Demand forecasting and planning
  • Development of Just-in-Time (JIT) strategies

What You Gain

  • Greater end-to-end supply chain visibility
  • Increased proactivity
  • Faster time to respond to disruptions
  • Less capital tied up in inventory
  • Improved service levels
  • Decreased Cost of Goods Sold (COGS)

 

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