Gartner Research

Build the Capability for Inventory Health Assessment

Published: 25 May 2017

ID: G00325925

Analyst(s): Marko Pukkila

Summary

Inventory health evaluation is an assessment of a company's inventory holdings relative to expected future customer demand according to service-level expectations. This research helps supply chain leaders develop the foundational capabilities for assessing the health of their inventory investment.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Develop Visibility Into Future Independent and Dependent Product Demand Across the End-to-End Supply Chain
    • Finished Goods Demand
    • Raw Material and Intermediate Materials Requirements
  • Establish Coverage Objectives for Inventory SKUs
  • Develop Reporting Capability to Assess the Health of Current Inventory Holdings by Comparing Them With the Future Product Requirements
    • How to Calculate Inventory Performance

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