Create an Inventory Strategy to Support your Customer Service Strategy
Summary
Most small and midsize businesses (SMBs) that produce or distribute products have, at best, rudimentary software for managing their role as supply chain participants. Gartner, the leading resource for unbiased industry analyses, views supply chain management as an area where a well-targeted solution scaled to SMBs’ unique requirements can quickly provide returns that justify the investment. The first requirement for most companies will be to map out a strategy of how your inventory and your capital (cash and or credit) will support your customer service goals. So instead of relying solely on the supply organization to decide, executives need to have a major say in the fundamental issues that impact inventory management—everything from determining the right breadth and complexity of product offerings to optimal plant and distribution footprints This breakdown makes it easier to make sound decisions about appropriate levels for each of these three areas. It helps determine the minimum safety stock needed to provide an insurance policy against supply chain problems either from manufacturing glitches or distribution uncertainties so that customers get what they ordered.