Supply chain consultants introduce new inventory reduction analytic tool

Filed in archive Products on April 29, 2009

Supply Chain Consultants announced last week a new inventory management module for its Zemeter family of supply chain management software tools. Reducing inventories and conserving working capital is the number one issue in the supply chain today.

According to Business Wire, Supply Chain Consultants' newly released Inventory Analyzer (IA) provides a scientific way to identify pockets of non-productive inventory so a business can reduce working capital without hurting other business goals. As a result of the economic recession, products of all types are beginning to back up in the supply chain. This rapidly growing inventory represents huge sums of money tied up in an idle asset.

"Pressures to reduce working capital have never been greater," said Sujit Singh, chief operating officer of Supply Chain Consultants. "The need to generate cash is more urgent than ever before. Now, for the first time, there is a painless way to identify not only what inventories can be cut, but also exactly how many dollars can be reduced. At the same time, the process allows you to see areas where "inventory right-sizing" indicates the need to increase certain stocks or rebalance their location."

The many benefits of the Inventory Analysis software include:

- Reducing inventories without harming customer service;
- Quantifying dollars reducible (over target) at flexible levels of aggregation (by any slice/dice combination);
- Providing executives with a clear, simple "bird's eye view" of total cash reductions achievable across materials and plants;
- Updating inventory status continuously; and
- Tracking progress continuously versus using reduction targets.

The company claims that the IA product can deliver measurable results in 30 days. The end result of using IA is an inventory rationalization that is easily achieved and has no negative impact on providing great customer service.