Inventory management is still considered a dark art by many organisations, whilst inventory itself is often seen as a necessary evil. However, when inventory is considered as a key pillar of the supply chain trade-off equation between customer service, logistics costs and working capital, underpinned by risk and sustainability considerations, it becomes a competitive advantage. This recent article by the Australian Financial Review details just how improper inventory management can cascade into other aspects of your business and end up costing you big.
But this doesn’t have to be your story. A well-managed inventory will not only support smooth operations across manufacturing, warehousing and distribution, but it will also help to improve customer satisfaction, mitigate demand and supply risks and manage a company’s financial performance.
In essence, inventory management is about answering the following key questions collectively:
- What inventory do I need to hold? Raw materials, sub assembly, and/or finished goods?
- Where do I hold that inventory? Locally, regionally, or nationally?
- How much inventory do I hold? Keeping in mind the customer service levels, response lead times, and demand / supply risk mitigation.
- How do I best replenish my inventory? Remembering your distribution network trade-off between customer service, logistics costs (warehousing, distribution, cost of lost sales) and working capital.
Inventory management is a capability, with significant negative implications to both suppliers, internal operations, and customers alike – if and when done incorrectly. Organisations need to start taking inventory management seriously in order to be successful financially, operationally and from a customer experience.
If you’d like to evaluate your inventory management processes and streamline your operations, Siecap stands ready to assist. Our experienced consultants are available to assess your current state and provide you with actionable recommendations that we can guarantee to improve your business. Reach out now through https://siecap.com.au/contact-us/ to get started.
Modern Slavery
“Ignorance is no longer an excuse. The facts are sobering and real. An estimated 45.8 million people experience some form of modern slavery in the world today and more than two thirds are in the Asia Pacific Region. Not only is […]
Siecap Presents on Decarbonisation & Sustainability to Tuvalu Chamber of Commerce
The Tuvalu Chamber of Commerce has asked Siecap to come to their country and speak on ways that Siecap’s supply chain, infrastructure, and ESG knowledge can help island nations like Tuvalu survive in a rapidly evolving world. With Australian Prime […]
Millennials in Consulting
As a consultancy firm focused on creating sustainability and clearing supply chain blockages, it should be no surprise that Siecap is also dedicated to ushering in the next generation of consultancy experts. After all, consultants need to be able to […]
The 6 Ps of eCommerce Distribution
Recently we were approached to share our thoughts on what should be the significant considerations and approach to consider when reviewing an eCommerce distribution operation. In this situation we would suggest that applying an enhanced adaption of the classic 5P […]
Why Hard and Soft Skills are required to deliver MRO Results
Ineffective MRO processes carry significant risks, which include among others, unplanned equipment downtime. In a recent conversation, a highly senior supply chain leader, formerly the Head of Supply Chain at one of the world’s largest fast-moving consumer goods (FMCG) organisations, […]
2024’s Golden Rules: Big, Bulky, and Dimensionally Awkward Distribution Centre Design
Siecap has worked with a considerable number of clients in the non-standard distribution space, and we’ve seen a huge range of distribution centres that miss the mark on efficiency. Much of our initial work with these clients involves streamlining and […]
Australian Critical Minerals
Australian Critical Minerals The global demand for critical minerals is growing immensely. The transition to clean energy technologies, critical mineral supply chain resilience and security and the impact of hydrocarbon fuel security are driving this huge increase in growth. The […]
Australian ECommerce Trends and Growth
“The rise of ecommerce has not only changed the game in terms customer experience and expectations, but it has been a catalyst for other industries to refresh their thinking on how they can add more value by increasing service, speed […]
A Circular Economy
Not a moment to waste 10 years in transition This is the timeframe that the Queensland Government has set itself to transition into a circular economy framework. In 2022, all levels of government, multiple peak waste management and recycling industry […]
The A-Z of setting up and managing a warehouse in Australia
Everything from planning to inventory storage & management Let’s look at the items that make up the majority of your warehouse operations. It’s more than the building that houses your inventory.Any building can be used as a warehouse for storage […]
