Inventory management – With advice to fewer stocks

Inventory management refers to the ability to manage inventory. In other words, a company must have the right stock levels so that the targeted service levels can be achieved and at the same time as little capital as possible is tied up in stock. Volatility in terms of supply and demand must be taken into account. It is important to know that stock optimisation is an ongoing process that requires constant observation and adjustment. Accordingly, the aim of inventory optimisation is to cover fluctuating market requirements by controlling and planning the value creation processes. Inventory optimisation makes sense at any time, but varies from company to company. In order for inventories to be reduced in an economically sensible way, it is necessary to know which factors influence the inventories. As many companies have a large amount of capital tied up in their inventories, these sums are not available for investment. In these cases, a reduction in inventory can lead to a reduction in costs and at the same time to a release of capital. This alone shows that inventory optimisation always makes sense.

Inventory reduction in practice

Inventory levels should be analysed, controlled and subsequently optimised on a daily basis. In order to determine the optimum stock level, a sales forecast must be created – and this must be done daily for each item. This is done by calculating with existing data. The excess stock and superfluous orders are displayed. Shortages, on the other hand, can be recognised via the sales forecast. Optimised delivery ensures that delivery capability and customer service improve and sales increase sustainably. The dynamic safety stock, which is linked to factors such as service targets, sales risks, supplier risks and sales trends, is particularly important for inventory optimisation.

Optimised inventories with Bross Consulting

We offer valuable approaches in combination with advice on the latest software for warehouse management as well as in the planning of warehouses themselves in compliance with all applicable guidelines. Let’s find ways together to ensure that your company remains/becomes competitive through inventory optimisation.

Contact us on the subject of inventory optimisation

We at Bross have been providing our customers with our expertise in the optimisation of inventories for many years. We look forward to your enquiry!