Lean Dynamics LLC
DE
alt: 302-528-2700
PeterKin
Many companies carry much more inventory than they really need, but also have poor customer service levels. That’s because they don’t have good analytical tools to understand how much inventory they require, and instead use rules of thumb like “we need two weeks of safety stock coverage” or “our safety stock should be 25% of our cycle stock”. These almost always result in too much inventory in some SKUs and too little in others.
Lean Dynamics has experience helping companies right-size their inventories, and then drive the levels even lower. We realize that good inventory management is a five step process:
1) Use sound analytical tools to determine the appropriate inventory levels based on current process performance.
2) Transition to those levels.
3) The analytics will tell you what factors in your current performance – lead times, order quantities, forecast errors – must change to allow lower inventories
4) Use appropriate tools to improve those factors. We have a powerful set of tools – Value Stream Mapping, Supply Chain Mapping, Product Wheel scheduling, etc. - to help here.
5) As improvements are made, transition to the new levels.
Copyright 2011 Lean Dynamics LLC. All rights reserved.
Lean Dynamics LLC
DE
alt: 302-528-2700
PeterKin