Has anyone successfully reduced excess inventory by a significant amount? Do you have any tips or recommendations?

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Director of Supply Chain10 months ago

Reducing excess inventory can be complex. I recently read an article in Gartner that raised some interesting points about not simply cutting down on inventory, as it could affect potential business opportunities and the company's financial health. You need to find a balance between not being overly aggressive in your reduction and not running out of stock by collaborating with your cross-functional teams. Companies go through different cycles during the year, where the focus can be shifted from working capital reduction or increasing inventory levels to support critical customers’ requirements therefore navigating through these times with balance is key.

Mission Diplomatic Technology Officer in Government10 months ago

Combination of awareness, works in our processes, GSA policies, and developing a loose business cost impact.

Barriers were an upstream stream policy that required a x capacity, while also requiring 60 days of notice. Our change that highlighted was a goal to deploy/refesh faster monthly.

The impact of the two policies and processes was that we often had to store in warehouse 2-3 times excess. It became a barrier to our throughput for deployment. The target of 1000 deployments a month was at risk AND policies began to increase our overall warehouse cost. We got auction batches to be smaller. And started offering material to donation.

Sustainable Supply Chain Adviser in Healthcare and Biotech10 months ago

Question is: why do you think you need to remove that much inventory and was the actual exercise to define what level of inventory is really required based on the value chain you are running done?
I did remove over 50% inventory in special transformational cases, but in such cases we had serious business issues in those companies.
Probably the best is to really establish how much is needed, then taking a look at the gap between what you have on hand and that.
If it is still a lot, then once again, you can work through the terms & conditions you applied along your full value chain (from upstream to the end of your downstream controls and contracts) and see, where the surplus comes from (misalignments, gaps in actual terms that would be needed etc.).

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VP of Supply Chain in Transportation10 months ago

Captured $22M and $15M in two different instances using scenario modeling and what-if analysis for inventory analysis. Significant yields in working capital reduction by changing SKU profiles, replenishment triggers, inventory segmentation, and safety stock levels. Prescriptive analytic tools can provide a benefit in providing recommendations for better inventory controls.

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Founder in Services (non-Government)a month ago

Simfoni is one I’m aware of, but I caution you away from applying too many rules and restrictions as you aim to reduce unnecessary costs. Too many restrictions will come with the costs of slower progress, additional overhead ...read more

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