Inventory takes on a lot of different identities within a manufacturing company, depending on who's doing the looking. An accountant sees inventory as an asset, a controller sees it as a liability, a production supervisor considers it a safety net, while a materials manager finds it a tightrope. One common aspect to inventory, though, is that everybody agrees that holding it can be costly. The following are a dozen ways to reduce inventory, suggested by supply chain consulting firm Cornerstone Solutions:
- Reduce demand variability
- Improve forecast accuracy
- Re-examine service levels
- Address capacity issues
- Reduce order sizes
- Reduce manufacturing lot sizes
- Reduce supplier lead times
- Reduce manufacturing lead times
- Improve supply reliability
- Reconfigure the supply chain
- Reduce the number of items
- Eliminate questionable practices
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About the Author
Dave Blanchard
Senior Director of Content
Focus: Supply Chain
Call: (941) 208-4370
Follow on Twitter @SupplyChainDave
During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.