Inventory misconceptions are damaging
companies' top and bottom lines, according
to a new Aberdeen Group benchmark study sponsored by E2open?#8364;”the leading provider
of software as-a-service to manage inter-company processes. The study reveals a
resurgence of interest in inventory management among best-in-class
companies.
New approaches to managing inventory across the supply chain, assisted by
supplier collaboration, inventory optimization and visibility tools, are helping
leading firms achieve 20 percent performance improvements in key inventory
metrics.
"Inventory is one of the most valuable assets a company has, yet benchmark
results show that most companies fail to manage it effectively. The majority of
manufacturers and distributors rely on out-of-date, too simplistic, or overly
localized inventory policies," said Beth Enslow, Aberdeen's vice president of
enterprise research and author of the report.
A number of companies, however, are driving 20%+ reductions in on-hand
inventory and 20%+ improvements in time to market from supply chain inventory
initiatives. Aberdeen identified E2open customer Seagate Technology as a
best-in-class company that "stands out in adopting new, technology-supported
processes."
The report concludes that companies need to rethink how to stage inventory
across their channels, how to use postponement and risk pooling strategies, and
how to leverage the inventory capabilities of trading partners. It advocates use
of supply chain inventory technologies to allow companies to optimize the
positioning of inventory globally across supply chain tiers and enable
collaborative inventory processes with suppliers.
WHO: Rob Barrett,
E2open Vice President, Solutions Engineering
WHAT: Aberdeen Group Research, Supply Chain Inventory Strategies Benchmark
Report:How Inventory Misconceptions and Inertia Are Damaging Companies' Service
Levels and Financial Results
MEDIA OPPORTUNITY: Mr. Barrett can provide an insider's perspective on the
study results by bringing his extensive experience in designing inventory
management solutions and shaping inventory strategies for a variety of Fortune
500 firms while at E2open and in his previous position managing the trading
partner collaboration practice for KPMG/BearingPoint. In addition, Mr. Barrett
and Aberdeen Group representatives can provide insights into the data gathered
from 178 enterprises during the research on supply chain inventory management
procedures, experiences and intentions.
