Overcome the Cost Reduction Conundrum
In challenging economic times, cost reductions are the only constant, and you’ve been asked to find ways to achieve more savings, yet again. But previous reductions have already left you with fewer resources and any further downsizing will severely impact your customer satisfaction levels. What are your options?
Furthermore, you, like many others, are managing the inventory of hundreds if not thousands of raw material and finished goods SKUs and their stocking levels were assigned according to forecasts set during the previous year. In this unpredictable economic climate, inventory levels set in this fashion can be grossly misaligned with actual demand. Realigning your inventory investments with the needs of the market can offer an immediate and significant cost reduction. But with the size of your team severely reduced in previous cost reduction initiatives, how do you find the resources to sift through all of that data to find the requisite savings?
Mining for Savings
Invistics’ inventory assessment can help. Inventory levels are the single most valuable component of your manufacturing operations to mine for cost savings. Our consultants possess deep expertise in analyzing demand and lead-time data and optimizing inventory levels within complex, high-mix, high variability industrial and distribution environments. Their efforts will not only help you find ways to right-size your inventories in the near term, they will also help you plot the path toward operating at lower inventory levels without sacrificing on-time deliveries and customer satisfaction.
Designed for manufacturing executives, plant managers and their teams, attendees participating in the inventory assessment exercise will:
- Learn the right questions to ask and the right data to use to better understand the tradeoffs between inventory investment and customer service.
- Be provided with actionable recommendations for adjusting current ordering and production practices to significantly reduce working capital.
- Learn how to utilize the demand-driven approach to calculate the optimal lot, batch and campaign sizes and rhythm wheel frequencies for their manufacturing operation and be able to synchronize these rhythm wheel frequencies across their supply chain.
- Develop processes that will ensure a successful and sustainable implementation of the selected demand-driven pull strategy.
- Identify longer term opportunities for changing your inventory requirements.
Past participants have realized sustained inventory savings of 20% – 30% with a thorough and strategic review of existing inventory levels and replenishment practices.
Contact us today to learn about how we can help you right-size your inventories.