In today’s business environment, companies are under constant pressure to reduce inventory dollars in an effort to improve cash flow. Achieving this without endangering your customer service levels and operational efficiency requires maximizing the benefit of every inventory dollar you have. To reduce working capital, first you want to eliminate what isn’t best for business. Arkieva offers a way to determine how high inventories really need to be to support-desired sales levels.
Arkieva Inventory Reduction analysis helps you to:
- Examine all aspects of your inventory (ex. create a snapshot of inventory for a single day)
- Store SKUs of all types (ex. raw, semi-finished, finished product) at all locations with dollar value per SKU
- Share this information with your inventory planners, inventory managers, warehouse managers, and others
- Know the specifics of your inventory situation; what’s currently on hand and what you’ll need
- Segment products by profitability and demand variability
- Ability to determine the appropriate proportion of raw materials versus finished product to stock
- Ability to position finished product inventory to support demand – across warehouses and regions
And Arkieva Inventory Reduction software helps you answer the following questions:
- What are the top 10 SKUs by total dollar value on hand?
- What percentage of total inventory investment does this represent?
- Are these most costly inventories in the right proportion to your demand?
- What inventories are imbalanced by warehouse or region, in excess, overage, or slow-to-non-moving?
- What are the appropriate inventory levels to carry for each SKU, and how can those numbers be kept evergreen?
- How will different service levels impact your inventory investment?
- Are there sources of hidden inventory dollars that you can remove?
- What if I have to begin inventory builds for seasonality or to cover a shutdown?
- When should I NOT carry inventory?
Knowing how much inventory to keep and how much to sell is a high-wire balancing act that every business needs to master. Arkieva can help you to not only balance your inventory, but plan ahead with the proper safety net.