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Savings Service And Supply Chain Continuity

Global Supply Chain Group’s Guide to Inventory Management


Most CFOs already know that slightest increase in interest rates or their WACC could easily increase the inventory costs so high that they would start making a huge dent in the quarterly profits. However, among the rest of the management, the awareness of this vulnerability is not so high – and they are likely to caught with surprise if this eventuality ever happens.

But that is not the only reason people think about keeping inventories in check. There are many other reasons. You can read them in the detailed description below.

No matter what your role in your company is, here a few relevant questions that you need to think about:

  1. Are our inventories in line with the best practice, or close to the best practice?
  2. If not, then how far out of line are we and how can we bring the inventories back in check?
  3. If there something inherent about our supply chain model which is throwing our inventories out of line and how much is it costing us?
  4. Is our manufacturing network ideal for the customer demand pattern and the current global commercial and supply chain reality?
  5. How good are our supply chain decision support tools?
  6. Are people hoarding information or inventory in our company to the detriment of our profitability?
  7. What strategic decisions were made at the board or executive team level without due regard to their implementability, and how are they affecting our inventory levels?

If you want to know more about the impact of inventory on our business outcomes, and whether this report is for you or not – read the full description below.


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Global Supply Chain Group’s Guide to Inventory Management

Cost of inventory goes up and down with the rise and fall in interest rates

If you believe that your weighted average cost of capital is always going to remain low, then you may not need to ever bother about inventory management. On the other hand, if it could possibly get bothersome at some point in time, then you had better keep a close tab on your inventory levels.

This report is for CFOs, finance managers, lean managers, supply chain managers, inventory managers, inventory planners and other supply chain planners who want to focus on their inventories to optimise the inventories.

So what can go wrong with the inventories in a company?

The worst thing is running out of inventories when a customer needs an SKU. But that is not the only inventory problem we have seen in the past 23 years. Other inventory related problems that are even more common than that are:

  • Too much inventory of everything in all places
  • Excess inventory in the wrong places where goods are not in demand, and shortages in places where items are in demand
  • Inventory of wrong things that are not in demand, and shortages of items in demand

All these are related problems and can change from time to time depending on the demand dynamics, as well as supply dynamics.

Does that mean that if you buy this guide all your inventory-related problems will disappear? You are right, inventory optimisation is an eternal quest, and you can only come close to an ideal inventory, but never get to it. Moreover, knowing what to do is one thing, and actually being in a position to do so it completely a different thing. So, if you are encountering blockers, we have other reports and guides talking about how to overcome those blockers.

What are the benefits of optimised inventories?

most benefits are already commonly known

  • Cost reduction, and profit enhancement
  • Warehouse space optimisation
  • Obsolescence and write-off reduction
  • More accuracy of inventory records – there is a tendency for accuracy to drop down when inventories get past a certain multiple of weekly demand
  • Less pilferage, more secure warehouse and supply chain as inventory accuracy improves
  • Better housekeeping in the warehouses – excess inventories seem to be stored in an ad-hoc manner
  • Better fulfilment rates, happier customers, and market share gains

If you improve your inventory management practices, you will notice many of the benefits above.

If you want more information on this report – click here


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Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.



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