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THE FLEXIBILITY PARADOX
If you want to save costs and ensure high delivery reliability at the same time, you need a systematic approach to dealing with inventory costs.
ROI INVENTORY COST MANAGEMENT RELIES ON A MULTI-LAYERED APPROACH FOR THIS PURPOSE.
Warehouses are amazing places. They manage to secure and destroy flexibility at the same time. On the one hand, the inventories in these areas create flexibility by helping to decouple supply and demand, cushion the resulting fluctuations and protect against excessive supplier power. On the other hand, they also steal flexibility by tying up significant liquid funds, which are then no longer available for strategic and operational initiatives. From a cost perspective, it is therefore clear that the best bearing is not a bearing. However, if you want to guarantee entrepreneurial flexibility and a high level of supply security and delivery reliability at the same time, you must not simply reduce stocks across the board, but reorganize your inventory management according to lean principles. The key to this lies in the combination of a redesign of the supply chain processes, the introduction of digital planning and control methods, improved cooperation with suppliers and the anchoring of inventory management excellence in the management team. With the Inventory Cost approach, ROI has created a fast-acting approach for effectively minimizing inventories on the one hand and reliably securing delivery reliability on the other. For the most time-consuming implementation possible, it relies on the parallel optimization of four central workstreams.