Inventory Management

Distribution Operations

The prime objective for all supply chains is to provide clients with what they want, when they want it. Inventory management plays a central role in every supply chain’s need to satisfy its clients.

Why Inventory Management is Important to You

Despite its importance to the supply chain, methods for inventory management and lowering inventory costs are not well understood. Inventory is seen as both a positive and a negative — as an economic asset to a non-income-producing use of capital funds.

Only when considered in light of all quality, client service and economic factors — from the viewpoints of purchasing, manufacturing, sales, and finance — does the whole picture of inventory management become clear. No matter the viewpoint, effective inventory management is essential to supply chain competitiveness.

Recent industry reports show that inventory costs as a percent of total logistics costs are increasing. Despite this rise, many organizations have not taken full advantage of ways for lowering inventory costs.

There are a number of proven strategies that will provide payoff in the inventory area, both in client service and in financial terms. Some of these strategies for lowering inventory costs involve having less inventory, while others involve owning less of the inventory you have and only having inventory when and where it is needed.

Why Tompkins is the Best

Tompkins International helps companies develop an effective approach to inventory management. We analyze the impact of internal and external factors to integrate inventory with purchasing, manufacturing, distribution, marketing, and sales to create inventory policies that make sense. Tompkins solutions take into account:

  • Client needs and their influence on in-stock/fill rates, lead time and accuracy
  • Costs incurred from purchase transaction expenses, manufacturing set-up/changeover expenses, and more
  • Operations changes driven by promotions or recalls and SKU proliferation
  • Technology and its ability to provide trend, profiling and seasonality-based forecasting, trading partner visibility and planning collaboration
  • Corporate goals, whether revenue, unit sales, or RONA/GMROI or A/P increase

We look at every area impacting your inventory to create a comprehensive inventory management strategy that will enhance financial performance and client satisfaction.  Learn more:

 

Managing Inventory

For over 35 years, Tompkins International has helped companies and supply chains:

  • Assess inventory management practices
  • Improve forecasting accuracy
  • Create more logical stocking (and non-stock!) policies
  • Manage cycle stock to reduce costs
  • Establish dynamic safety stock levels based on client service
  • Cross-dock, cycle count, transfer, and discontinue SKUs effectively
  • Reduce purchase transaction and manufacturing set-up/changeover costs
  • Continuously improve inventory performance

More on Inventory Management

Blog

Dimensional Weight Pricing – Shoplifting VS. Highway Robbery

According to the National Association for Shoplifting Prevention there are approximately $13.0 billion of merchandise shoplifted each year in the United States. Perhaps surprisingly, it is estimated that almost 85% of goods shoplifted are stolen by employees; leaving only 15.2% — about $2.0 billion – worth of goods which are stolen out of stores by customers.

Client Success Story

Inventory Optimization and Distribution Network

A national tire distributor wanted to optimize its distribution network in order to reduce costs and improve service.

Blog

Finished Goods Inventory Management: Comparing Past Results to Today’s Outcomes

My history teacher used to tell me it is important to understand the past to shape the future. I didn’t know it at the time, but the same rule also applies to supply chains. Tompkins Supply Chain Consortium’s latest report on finished goods inventory management compares past and present outcomes, which lets us see how…

Client Success Story

Distribution Operations Transition Assessment and Planning

A specialty cheese company wanted to transfer its retail deli business into its primary distribution operations with potential effects across the organization.

Blog

Has Inventory Really Gone Out of Style?

There are some fashion trends that I hope never come back in style. I’m sure you could guess a few (I’m looking at you, plaid bell bottoms). Just like fashion trends, the way we do things often shifts and changes. With supply chains, we’ve seen a major shift in inventory to historically low levels. Inventory…

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