Optimise the balance of stock availability versus working capital
A stocking strategy provides clear guidelines to all areas of the supply chain detailing the number of stockholding locations, where they are located and the level of inventory held at each. Increasing stock levels ensures good availability and happy customers, but holding inventory can be costly. These two pressures oppose each other and it is a difficult balancing act. Working capital, storage, handling and obsolescence costs quickly add up.
Our analytical consultants have experience of working within inventory management and can analyse your stockholding and order data to:
- Develop a stockholding budget that meets your availability service level
- Define and agree a sustainable inventory policy for different product categories to meet customer demand
- Evaluate inventory management performance and key factors leading to over- and understocks
- Define inventory review processes that support joined-up thinking across the organisation
- Review ABC categorisation and volatility to assess viability for usage in storage
- Analyse the ‘Cost to Serve’ by product range or individual SKU level
Defining stocking policies can also be performed in conjunction with a strategic design of the logistics network. The objective being to create a holistic supply chain network that can drive down levels of inventory while maintaining availability by implementing rapid replenishment systems from local stock points. This has implications for storage requirements, the size of stock points, distribution systems and transport infrastructure whether on a national or global scale.
The benefits of working with BoxLogic on your stocking strategy are:
- Experts in network strategy with relevant background working in inventory management and stock planning teams
- Highly analytical consultants can quickly draw out trends within data to expose opportunities
- Significant experience across the supply chain so we understand the importance of how each aspect links to the other
- Ability to design at national, continental or global level