Effective Inventory Management is not just about knowing what is on hand, where it is in use, and how much finished product you have. Achieving balance can allow your company to act quickly, protect margins, and ultimately take market share. Achieving this balance requires being able to link planning, sourcing, production, distribution and sales with common goals and processes.
Synergetics’ deep operations management experience enables us to assist clients in improving their inventory positions and processes. Typical questions we might ask: “Are you using statistical formulas that incorporate the accuracy of sales forecasts, required production lead times, manufacturing schedule adherence and service-level data for each SKU?” Or, “Who (and how) determines the optimal frequency for producing or ordering products?” In these cases we may suggest to keep your inventory costs low by optimizing production and demand planning, fine-tuning stock and service-level policies, and trimming the SKU portfolio, as just one example. Your company, operating within a specific industry, under changing economic conditions, and in a particular geographic location /country, has unique factors we consider. Synergetics applies our global knowledge to fit your business needs.
From the time you order raw materials and take them through the entire production process, finish the final product to ship and meet customer orders, as well as account for future demand, the complexities and scope of Inventory Management are tremendous. We can help your management team work the fine lines between: replenishment lead time; carrying costs of inventory; asset management; inventory forecasting, valuation, visibility, and future price forecasting; physical inventory and available physical space; quality management; replenishment; returns, and defective goods; and demand forecasting. A long list, to be sure.
How your company accounts for your processes are also key considerations. Aside from using financial accounting to publicly report your financial performance (and to which all your other accounting systems tie into), how you measure your Inventory Management functions is critical to your balance sheet. Synergetics can help your company in these areas, particularly as they tie to cost accounting, whether to use standard, Theory of Constraints, or FIFO vs. LIFO, as examples, to best fit your operating model. Synergetics can help you through these questions to best optimize your processes, and your bottom line.