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Funding Growth

How much inventory is in the world? The short answer is that no one knows for sure, and no one keeps track of it at a global level. However, with some simple data points and deductions, one can probably arrive at a reasonable approximation of how much inventory is out there. This question gives us an understanding of how efficient the world is in turning inventory into economic output.

Read: Funding Growth

Multi-echelon inventory optimization takes a strategic, network view of the supply chain and establishes inventory policies based on tailored strategies. Key ingredients to successfully executing this are:

• Institute a single view of demand, tied to the real end customer.

• Segment demand and supply based on different products, customers and times.

• Tie inventory management to business strategies.

• Deploy tools that optimize, produce multiple scenarios, and provide the means by which to make and deploy policy decisions.

• Make inventory policy management a regular process with integrated strategic, tactical and operational cycles.

Meet the Author:Kelly Thomas is a supply chain

professional and executive at JDA Software. He has nearly 30 years of experience in leading teams in design, development, sales and delivery of supply chain management and manufacturing execution solutions.