SCM Inventory analysis – Inventory management, purchasing and campaigns
"We improved our ability to deliver by 99 %, and were at the same time able to significantly reduce the capital committed to inventory"
"Our inventory turnover improved by 28 %"
"We reduced the amount of manual labor needed by at least 30 %"
Materials management is a large entity, which includes the development of supplier cooperation, inventory management, purchasing, anticipating changes in consumption, reporting on supply security, as well as campaign management and managing control parameters for labels, all according to their set goals.
With proper management, inventory reports show key figures aligned with actual sales. Often this is not the case. Proper alignment of purchasing and sales simultaneously allows for significant reductions in inventory and the amount of work needed for reordering.
At the same time, availability improves when purchasing and safety stock related parameter are up to date, and when reporting on trouble areas is proactive, rather than reactive. Increasing the level of automation also allows the purchaser to focus more on other things that matter.
The application’s summaries give you a detailed picture on procurements, the ABC, XYZ and ABXY classifications of products, inventory turnover, the sufficiency of stocks, availability, economical batch sizes, as well as purchasing and logistics costs of different suppliers and product categories. Transaction level information is easily available, represented visually in one view together with incoming batches, purchases, sales orders, forecasts, and campaigns, on a monthly, weekly or daily basis.
Reporting on suppliers' security stocks gives a strong foundation for developing your cooperation with them. The typical solution in response to uncertain suppliers is to increase one’s own safety stock. This is an easy but expensive solution.
Purchasing is difficult. Raising one’s level of automation is simply being modern. Utilizing your talent also requires good tools and opportunities to focus things that really matter. Most common ERPs other systems are lacking in this regard. SCM Best Practice’s purchasing tools help raise productivity to an optimal level. They include several control methods and we help you select the best ones in order to archive your goals.
When is SCM Inventory analysis for you?
- When deficiencies in inventory lower customer satisfaction, or interfere with manufacturing.
- When, in a manufacturing business, shortcomings interrupt production, or cause other unnecessary costs.
- When you want detailed ABC, XYZ and ABXY analyses on inventory products
- When inventory turnover feels lacking, but important items are still missing from your inventory
- When buyers are too caught up in routines instead of more productive work
- When you want your own ERP system to better serve your purchasing needs
- When costs for purchasing or storage are too high
- When changes are required, but your current forecasts don’t feel adequate
- When campaign management needs better tools for managing and reporting
- When your current suppliers’ reports on supply security don’t lead to wanted results