Inventory Planning: Create a Competitive and Profitable Supply Chain

Inventory represents one of the most significant capital investments any manufacturer must make to remain competitive in our fast-moving global economy. Effective inventory control, inventory planning and inventory management are critical to achieving a smoothly functioning supply chain capable of responding with speed and agility to meet market demand.

Yet, in spite of increased competitive pressures, many manufacturers do not give as much thought and attention to inventory management and inventory planning as such a costly investment deserves. Instead, companies often limit inventory planning and strategizing to a single department of purchasing and procurement professionals - many of whom are still using outmoded planning methods such as manual spreadsheets and non-integrated point solutions to make key decisions on ordering the materials and supplies required to feed production.

In addition, some multi-site manufacturing enterprises continue to manage inventories at the individual plant or distribution center level, rather than seek out the efficiencies and economies of scale that could be realized if inventory was treated as a competitive advantage, rather than just a capital expense.

In today's world of global supply chains, manufacturers face increased challenges, including expanded product lines, mass customization, shorter lead times and increased competition and customer demands. Failing to focus strategically on enterprise-wide inventory management, planning and control to meet customer demand can easily result in lost orders, lost opportunities, lost customers - and lost profits.

The Need for Accurate Forecasting and Inventory Analysis

Gaining global visibility and having the ability to locate and track the flow of materials and goods through the entire enterprise are essential to successful supply chain management. Equally important is having the tools to share that information cross-functionally and in real time and to analyze inventory management procedures and practices to gauge their impact on corporate goals, such as maintaining desired profit margins, production goals and customer service levels.

Imagine what would happen if a company such as yours could implement an automated, technology-based software solution combining inventory planning, inventory control, and inventory management. A deeply functional solution that could monitor, locate and track all material and inventory movement across the enterprise - even beyond the four walls - and report a single, accurate view of that information in real-time to everyone who needs it, anytime and anywhere. What a difference that could make!

With 360º visibility and the right tools in place, every functional area would benefit and contribute to corporate objectives. For example, arming all departments with an accurate view of inventory information at the level of granularity they need can enable:

• The sales organization to sell more effectively to customers
• Planners to project and forecast demand more accurately
• Procurement and purchasing personnel to better see and understand how pricing impacts profitability
• Production planners and schedulers to plan production efficiently so as to minimize stock levels, minimize production delays, and schedule production more profitably
• The logistics planning and execution team to plan more efficient and cost-effective distribution
• The financial organization to plan more accurately for desired profit margins, expense handling and cash flow

GSInnovate Inventory Edition from Glovia Services is a dynamic, fully integrated, on-demand inventory software solution. GSInnovate Inventory Edition requires no additional software, hardware, or IT staff and can be implemented quickly and easily, without disrupting your business. To learn more, request a Web demo for a closer view. Or call 1-877-474-8896 to speak with one of our inventory experts.