Inventory Insights

Inventory Insights

Kormac Insights

March 20, 2024

Inventory Insights
Actionable Insights for Inventory Reduction

We’ve all heard “there’s a time and place for everything,” but excess inventory undermines performance, profitability, and cash flow. That’s why leaders increasingly turn to Kormac for assistance in achieving sustainable inventory management. Last year, we helped a global manufacturer to:

• Analyze inventory to deliver SKU-level and group-level product insights for inventory management and reduction
• Reveal opportunities to address non-moving inventory and imbalances between usage and inventory levels
• Train and collaborate on optimization scenarios with Planners, Buyers, and Materials Managers across 4 plants to enhance Planning Master Data parameters in SAP
• Train engineers on Work Center and Routing functionality to ensure accurate planning requirements by part number, router, and bill of materials

We targeted lead time, supply reliability, and frequency of replenishment to identify inventory optimization potential at the SKU level, all while maintaining or enhancing service levels on customer orders. Ultimately, our analysis and collaboration contributed to a $20 million (10%) reduction in inventory in the first year. Moreover, we provided an inventory analysis approach to support and sustain inventory optimization activities for years to come.

To learn how Kormac helps clients make strategic decisions to optimize demand and supply, we invite you to visit the following pages: