Gartner Research

Gartner's Top Actions for Supply Chain Inventory Reduction

Published: 19 July 2018

ID: G00355981

Analyst(s): Paul Lord , Anita Vila-Parrish

Summary

Supply chain leaders are under frequent pressure to contribute to cash flow by reducing inventory. This research provides a set of sequenced actions for a comprehensive approach that will increase cash flow while protecting service levels, profitability and growth.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • No. 1 Reduce Order Quantities for Lower Cycle Stock
  • No. 2 Identify and Address Chronic Drivers of Oversupply
  • No. 3 Consolidate Finished Goods Stocking Locations
  • No. 4 Optimize Pull-Based Replenishment to Finished Goods Warehouses
  • No. 5 Implement MRP-Based Flow of Inbound Parts and Raw Materials
  • No. 6 Reduce Structural Inventory by Mitigating Critical Network Constraints
  • No. 7 Align Supply Planning With Inventory Targets
  • No. 8 Consolidate Product Designs, Obsolete Products and Common Items
  • No. 9 Design and Implement Postponed Processing
  • No. 10 Implement Advanced Buffering Analytics
  • No. 11 Develop Advanced Demand Sensing and Modeling Analytics

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