Inventory Management


Inventory Management

If your inventory is more business burden than business backbone, it is time to review.

Your success revolves around maintaining exactly the right stock levels. Too little stock, and you can’t meet customer expectations and service level agreements.

To resolve problems, you first need to identify the cause.

What is inventory?

Inventory are those stocks or items used to support sales (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service with finished goods and spare parts.

Inventory functions are anticipation, hedge, cycle (lot size), functions (safety stock, buffer, or reserve) and transportation (pipeline) and service parts.

Why hold inventory?

Most inventory is held to cover:

  • variations in sales
  • variations in supplier lead time
  • to gain quantity discounts
  • protect againsts price changes
  • scarcities of materials
  • manufactured parts lead times
  • allow flexibility in event scheduling
  • cover variations in demand (safety stock)

Why does inventory cost ~30% to hold?

Cost of inventory holding:

  • purchase order / placement cost
  • stock take cost
  • carrying costs (storage)
  • cost of capital (payment before revenue)
  • insurance costs (to cover loss)
  • cost of staff to manage the inventory
  • inventory handling in the warehouse
  • inventory deterioration
  • damage, expiry, obsolescence, theft

Our Inventory Management Services

Supply Today can review your process and identify exactly where it’s failing you.  Just as importantly, we can show you how to fix it and how much money you’ll save by doing so. (We can even fix it for you!)

An inventory management reviews cover a multitude of areas, including:

  • What is the true cost of inventory holding?
  • How much money could you add to the bottom line with good inventory management?
  • How do you reduce your exposure to obsolete and excess inventory?
  • How much are back orders costing you in lost sales and customer perception?
  • What are customer service levels – can you afford good customer service?
  • What safety stock levels do you need to keep?
  • What are the elements of inventory?

No matter what your company size or industry segment – small or mid-sized or complex blue chip enterprise – an Inventory Consultant can dramatically improve your inventory management processes.

With more than 30 years’ experience in inventory management and inventory stock control, we can transform your inventory management from business burden into business backbone.

Do you have the right inventory?

Do you have opportunities to reduce capital invested and improve service levels?

Call Supply Today on

1300 - 4 - TODAY