Wednesday, January 19, 2011

Inventory Profits and the Supply Chain

Inventory Profits and the Supply Chain

Many of us remember when inventory levels grew to unsustainable levels and the overhead associated with those levels.  Today many companies may have gone too far in inventory reduction.  How have responses to customer demands suffered, because the inventory was out of stock and the reorder would take too long?  Where are the profits when there is no sale?

Customer delivery pressures make things worse.  Where was their forecast?  What type of planning system do they have or not have?  Do they have sales forecast that looks at sales history?  They do have sufficient history to give an accurate forecast? 

How far out do your customers measure demand?  Are they so risk averse that they miss opportunities which affect their profitability?  Have their order sizes been reduced as they try to trim their inventory levels.  Thus causing a ripple effect in the supply chain.

A system tailored to your needs that adheres to industry standards which has the tools to integrate the supply chain has the potential to make happy customers and increase profits.  No software solution is perfect for every industry.  That is where industry expertise and proper questions come into play. 

Define the needs, do the research, ask lots of questions and check others success stories to see how they match your challenges.

Click here to contact Dolvin for a pressure free evaluation to see if we can find a solution to meet your challenges.

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