When examining the crucial factors that are influencing operations performance during these tough economic times, inventory exposure is a topic raised frequently.
Appropriately rationalizing your company's inventory management strategies is of vital importance to business performance. Too much inventory, or inventory which is poorly positioned, can result in impacts on cost and cash flow that can be potentially fatal in the current business climate. The goal of an appropriate inventory strategy is to ensure that you can maximize your opportunities in the market place with as little inventory as possible. This takes a clear understanding of the various factors that should be considered including product positioning, demand volatility and supply chain disruption risks.