How to reduce your stock by 50% while maintaining the same service level
For any company, one of the biggest capital investments is stock. To put it in perspective: one month’s worth of stock is equivalent to investing just under 10% of your annual revenue. How many projects on that scale have you implemented in the past year?
Achieving the right degree of product availability without excessively high stock levels is therefore critical to business success – not only for end products but also for semi-finished goods and raw materials. The ultimate objective of an effective inventory management system is to provide optimal customer service (i.e. delivery reliability) at the lowest possible inventory costs.
This article has been published in the newsletter of Mazars edition January 2015.
Within the official partnership between Groenewout and Mazars, we share and strengthen each-others expertise in operational logistics and finance within the Transport & Logistics industry.
If you would like more information about this article, please contact the author Alain Beerens.
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