In today’s global marketplace, with increasing competition and customer-driven demand, business success for manufacturers is defined by the ability to deliver the right quantity—of the right item—at the right location and price—at the right time.
Inventory is one of the most significant costs for manufacturing businesses, so its optimization should be (needs to be) a key corporate objective. Inventory is money that's been invested at a negative rate of interest. The longer it sits unused, the more it costs. Inventory ties up a business’ cash reserves, and it occupies expensive warehouse space.
Successful manufacturing leaders today, need to embrace formal inventory management strategies, in order to improve cash flow, reduce costs and realize optimal revenue potential.
This solution sheet outlines 3 leading cost control strategies for successful inventory management, as well as highlights:
- Common roadblocks or obstacles to successful inventory management
- What effective inventory management should look like
- How automation and technology, such as ERP, can help reduce expensive inventory costs