Inventory management is a form of cash management. Therefore, maintaining it properly is mandatory, from studying inventory cost up to controlling it.

Critical Issues Facing Inventory:

  • Inventory is one of the seven wastes of lean
  • As much as 60% of total assets of a company can be tied up in inventory, and same cannot be converted to cash until the inventories are sold and the receivables are collected.
  • Warehouse spaces cost staggering amount of money and are limited.
  • Storage costs can end up being more than the savings realized by buying in larger quantities.
  • Products that hit expiration date need to be removed/discarded in some form.
  • Determining the optimal inventory level can be extremely challenging due to the bullwhip effect, globalization, and changing customer needs. 

Value Shield insures that your stock level is kept at minimum and yet your customers’ demand is met without failure

We at Value Shield believe that if inventory is not managed well, it can become your worst enemy. In this era of globalization, companies are facing enormous pressures while dealing with ever changing market demands and lead time requirements. From setting your stock to its optimum level, all the way up to standardizing the processes of your demand and sales plans to come up with a proper supply plan, your best-in-class supply chain journey will no longer be out of reach with us.

  • Cash release and improved financial liquidity
  • Decreased holding costs
  • Shorter lead times due to improved demand forecasting techniques and high sales plan visibility
  • Decreased stockouts due to ordering accuracy
  • Improved service levels due to satisfied customers whose demands are timely met
  • High inventory turnover through optimized inventory levels on SKU level
  • Assess the current state of your inventory and determine improvement opportunities
  • Conduct ABC classification to determine what are the main items that drive your business through high consumption value
  • Establish safety stock, min/max stock levels on SKU level based on proven supply chain formulas, and setting reordering points
  • Conduct DIO reports and identify all the slow moving items in order to set successful liquidating strategies, releasing tied up money and improving your Cash Conversion Cycle
  • Develop standardized procedures that formalize the implementation of periodic S&OP meetings, guaranteeing that all demand, supply and financial leaders are in line

Content of this program can be highly customized to fit any industry at any level, from startups to multinational companies.

Available on predetermined contractual basis, where Value Shield will provide temporary hands on services, through tailored and fully customized scope of work with clearly set deliverables. Supportive training that embed in-house sustainability in the long run will be provided.

Informative slides, library resources, customized scorecards that measure KPIs, competency quizzes