Study
Overview:
Many companies are
comprised of diverse business units, each having their own P&L. In such
cases, inefficiencies occur in the management of balance sheet items like
inventories, where individual business units fail to optimize between
demand/service levels and finished goods inventories. This 42-slide presentation
provides insights into the value gained by centrally managing inventories in
diverse corporations.
Key Topics:
- Supply Chain Organizational
Models
- Inventory Management Metrics
- Centralization Transformation
Process
- Best Practices and Lessons
Learned
Key
Metrics:
- Percent that centralize part of
inventory management system
- Inventory Management Metrics
- Centralization Transformation
Process
Sample Key
Findings:
- While inventory days-on-hand and
inventory turns were the most frequently measured inventory management metrics
in the benchmark class, fill rate was rated the most effective metric by those
using it.
- Among the benchmarking partners that
have undergone a transition from a decentralized to a centralized or hybrid
inventory management system, 80% indicated that the transition took fewer than
three years.
- Benchmarking partners that have
undergone a transition from a decentralized to a centralized or hybrid inventory
management system most frequently rolled out the change top-down and bottom-up
simultaneously.
Methodology:
Best
Practices, LLC conducted an internet benchmarking exchange survey with 35
international/global companies across different industries. The study was
completed for a Global Benchmarking Council member.
NonMembers:
Purchase this document to view all key findings and the detailed survey data.
Business
Operations > Manufacturing
> Management
Structure
Industries Profiled:
Manufacturing; Chemical; Pharmaceutical; Consumer Products; Health
Care
Companies Profiled:
Eaton Corp; W.R. Grace; DuPont; Alfa Laval; Whirlpool; KimberlyClark;
John Deere & Company
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