Inventory Management: a no-brainer

Michiel Jansen   |   May 28, 2015   |   FMCG   |  

The importance of inventory in retail supply chains can hardly be overestimated. Not only does it determine the availability of your products to consumers, it determines the versatility of the entire chain. A supply chain with exactly the right amount of inventory can respond rapidly to changes in consumer demand, has a shorter time-to-market for new products, supports a wider product portfolio and achieves better bottom-line margins because costs of storage, interest and write-down are reduced to a minimum. For the most successful retail companies in the world, the need to hold tight control over inventories is a no-brainer.

Oddly enough, inventory management not always gets the attention it deserves. Many manufacturers and retailers still control their inventory by means of simple rules-of-thumb. These rules do not do justice to the diversity in products. Moreover, keeping track of all exceptions is highly time consuming. Readjustments to secure availability often are made reactively.

Sometimes these companies are under the impression that inventory management is complex or that highly sophisticated tooling with a long implementation trajectory is necessary to gain more control. However, a service oriented approach where aspects like lead times, order quantities, order frequencies and demand volatility are accounted for, often can be realized by simple means.

The EyeOn Inventory Assessment quickly provides detailed insight in the optimal inventory levels and accurately visualizes the trade-off between availability, inventory and expiry risks. As a part of the assessment, a company specific inventory model is created in Excel. Together with an ABC-XYZ categorization, this model is the basis for deciding on the right service levels. The EyeOn Inventory Assessment is an important step in professionalizing your inventory management.

For more information about the EyeOn Inventory Assessment or about the steps you can take to exercise tighter control over your inventories, please contact us at

Michiel Jansen

Michiel Jansen

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