Rightsizing Inventory in a Cash-Conscious Economy

In today’s economic climate, supply chain executives face growing pressure to cut inventory and reduce costs. Inflation, rising oil prices and labor costs, geopolitical uncertainty, and concerns about the global economy are all raising the imperative for CSCOs to safeguard margins while maintaining service levels.

However, optimizing inventory today is far more complex and challenging than it used to be. Organizations now juggle a growing number of SKUs with longer lead-times and more complex supply chains while having to offer faster fulfillment. Simple, one-size-fits-all approaches to getting finished products to market no longer work.

CSCOs now need to think about the bigger picture with more scenarios and alternatives that optimize across all locations and time horizons, factoring in sourcing, production, distribution, and service levels.