solutions inventory control

Inventory Control Critical to Supply Chain Excellence

With the growing complexity of today's supply chains, it's easier than ever to experience inventory levels growing beyond desired levels. Today, more than ever, inventory control has become critical to supply chain excellence.

Inventory control is all about the management of inventory to achieve predefined targets based on customer service expectations, production lead times and a host of other variables. Many companies run into inventory control problems because they fail to have formal policies in place or fail to execute policies that maximize both customer and shareholder interests.

Poor inventory control practices quickly create a liability for your company. Too little inventory exposes you to customer satisfaction risks at a time of unprecedented global competitive pressure and diminished customer loyalties. Too much inventory creates the potential for excess and obsolete inventory and ties up working capital in an environment where flexibility and rapid product innovation are keys to survival.

Inventory Policy Monitoring and Corrective Action Drive Operations Performance

There are a significant number of variables that affect inventory and each variable implies risk. In order to effectively manage risk, you need to be able to project inventory levels, model inventory variables (e.g., a downturn in demand) and be alerted to projected inventory imbalances immediately. You then need to be able to quickly detail and consider alternatives and take action.

Kinaxis™ RapidResponse™ serves as the inventory management software manufacturers need to monitor adherence to inventory policies, evaluate the impact of policy violations and determine the corrective actions required to ensure inventory control and drive inventory reductions.

Through proactive alerting and comprehensive reporting, you gain multi-enterprise exception-based insights into policy violations that frequently go undetected without the right inventory management software. And, RapidResponse can help you see which violations can actually negatively impact operations performance.

Once identified, policy violations can be quickly inspected to fully understand the impact they have on your business. Your staff can then collaboratively detail and inspect various action alternatives to determine the appropriate resolution to quickly implement.