Impact of right-sizing inventory on EBITDA

Supply chain planning projects are often approved on the back of the promise of lower inventory levels. In a recent conversation, I was asked a more nuanced question: whether right-sizing inventory via better supply chain planning improves earnings before interest, tax, depreciation, and amortization (EBITDA). This blog tries to address this question.

By |2019-08-07T11:15:12-04:00August 7th, 2019|Inventory Management|0 Comments

Creating Detailed Customer Order Allocation Data for Yearly Volume Contracts

A guide on how to improve material planning using a more detailed volume allocation of customer orders. It is a common business practice to write up yearly contracts for the volume. Very often, this is done to extend volume discounts to the customer. That is obviously a benefit to the customer. The supplier benefits by knowing how much to budget for in terms of production through the year. They can also count on the revenue coming in.

By |2019-04-13T23:09:03-04:00August 21st, 2018|Inventory Management|0 Comments

How to Track Your Inventory Stock Out Levels Using These Severity Codes & Alerts

In an ideal world, your products would have on-shelf availability whenever your customer needs them. However, this is often not the case for many businesses. It’s also essential to note that, not all stock outs or out-of-stock(OOS) carry the same severity levels or require the same form of actions. In this blog post, we’ll discuss a simple coding system using descriptive analytics that can help you easily identify different severity levels for your stock out.

By |2019-04-13T23:09:09-04:00March 15th, 2018|Inventory Management, Memoirs of a Black Belt|1 Comment

Look beyond the Turnover Ratio! Here’s a Simple Way to Create an Effective Inventory Management Process

Use this simple tool for identifying areas of potential improvement in the business to create an effective inventory management process. This type of measurement allows for a more widespread understanding of the nature of inventory and fosters action to prevent a build-up of non-value-adding "drag".

By |2019-04-13T23:09:10-04:00February 20th, 2018|Inventory Management, Uncategorized|0 Comments

Pin It on Pinterest