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Inventory reduction - are you really serious?

04.04.2023

The world is still a volatile place. Banking Crisis, Ukraine - Russia, Raw Material Shortages, weather phenomenons, even COVID is still more than a hot topic worldwide. What have we learnt from these events causing Supply Chain disruptions?

Most Supply Chain Managers have gained grey hear during the last 3 years with all these disruptions, and the world in SCM has completely changed. Suddenly many of our clients went from global to more local, disposed long-distance JIT models and had to admit that a higher inventory level is able to calm down many situations.

That is theory.

But also we have to face reality. Worldwide many companies had financial losses during the crisis and just "survived". Now higher energy costs, rampant inflation and as a result out of all these examples even the interest rate climbed to levels we didn't see the last 10-15 years.

Sure - a high interest rate implies higher financing costs for companies, which has to be avoided. As a result cash is needed!

Where is cash that could be generated without consulting someone for an expensive loan? Exactly - it is in the inventory where cash is locked. And now inventory has to be reduced - despite the companies did not forget what they have learnt to have a safe and calm Supply Chain - they just have no other choice when they want to survive!

Some people think this is against your own conviction - but new scenarios require new measures! And just keep old measures because they were defined 2-3 years ago just does not make sense.

If you are also in need to reduce your inventory on raw materials, WIP or final products - simply get in touch with us!

MWI can help reducing the inventory while keeping the supply risk at a low level. The "ABCD" path for inventory reduction contains:

  • A - Analysis tools, such as ABC/XYZ or a value stream analysis
  • B - Bold Measures finding tools
  • C - Clear transformation path definition
  • D - Direct and sustainable implementation

and it can help everyone who is in need for reducing inventory levels to generate more free cash flow!

We are happy to help you to get cash without losing Supply Chain control!


Sie benötigen einen Interim Manager für die Bereiche Supply Chain Management, Einkauf, Lieferantenmanagement, Logistik, Lager, Digitalisierung?

Wir können temporär Ihren CSCO, Abteilungsleiter oder Bereichsleiter ersetzen – das “daily business” wird unbemerkt wie gewohnt fortgesetzt. Die Einsatzdauer kann zwischen einer Woche und mehr als einem Jahr betragen.​

In need of an Interim Manager in all or some areas of Supply Chain Management, Procurement, Supplier Management, Logistics, Warehousing or Digitalization?

We can temporarily replace your CSCO, department manager or area manager - the "daily business" continues unnoticed as usual. The duration of the assignment can be between a week and even more than a year.​

JETZT
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MARKO WEISSHAAR
CEO
Am Reuthsee 11
D-91325 Adelsdorf
+49 162 2553217
marko.weisshaar@mw-interim.com
MARKO WEISSHAAR
CEO
Am Reuthsee 11
D-91325 Adelsdorf
+49 162 2553217
marko.weisshaar@mw-interim.com