Newsletter | Contact | Press 
Deutsch | 中文

Inventory optimization

Inventory optimization is absolutely essential for a flexible supply chain. Optimized inventory management enables shorter lead times, higher reliability of material availability and lower process costs.

Inventory levels are often merely a result of how things have always been done, thus they are only managed to a limited extent and often do not meet the requirements of the production process or customer demand. A focus on purchased parts often prevents more comprehensive optimization along the entire value chain.

High inventory levels and long lead times tie up capital, increase process costs, and reduce the flexibility of the supply chain. Maintaining a high service level is often impossible when inventories are poorly managed. The supply chain consultancy 4flow consulting helps businesses optimize their inventories along the entire supply chain.

Benefits of inventory optimization

Example of inventory optimization performed by 4flow consulting
Example of inventory optimization performed by 4flow consulting

4flow lowers inventory costs by implementing standardized and optimized inventory management. By reevaluating the range of items in the inventory regularly, process capability can be assessed continuously. As a result, inventories are made transparent and remain low.

The results 4flow consulting typically achieves in inventory optimization projects include:

  • Lower transportation costs by up to 40%
  • Transparency about causal relationships that influence inventories
  • Implementation of sustainable processes to avoid obsolete inventory
  • Increase of material availability to more than 95%
  • Achievement of quick-wins during the project

Solutions from 4flow

An analysis of planning and management processes along with inventories, consumption rates, and lead times is essential in order to identify opportunities for improvement. Analyzing critical paths in manufacturing and minimum inventory levels complete the insight gained.

Early in the project, all of the information connected to the inventory is actively used. Then, specific actions to reduce inventory are developed and implemented with the client such as:

  • Systematic revision of material parameters
  • Optimized assignment of procurement processes
  • Definition of target inventory levels for all value chain echelons
  • Establishment of tactical material workflows and systems
  • Integration of planning and scheduling

To top