Inventory Optimisation
Volatile demand patterns in the current economic downturn have put manufacturers and retailers under pressure to continue to deliver products at optimal costs. As a consequence, inventory reduction has become a major focus. Increased promotional offers, stronger value driven purchases have created complexity in the entire supply chain and lowering inventory levels is the battleground to drive cashflow .
Due to the business inter-dependencies, companies are now forced to overcome the traditional unilateral approach to inventory, focusing only on internal cost efficiency. Inventory strategies have been rising in priority across companies and there is now a declared ambition to decrease total inventory and free cash for all business partners, whilst maintaining speed to shelf, high availability rates to consumers/shoppers and an overall sustainable business performance.
The aim of this new supply chain project is to develop collaborative industry guidelines for end-to-end inventory optimisation across the supply chain from the manufacturer’s finished goods warehouse to retailer shelves.
Project brief
Member companies
| Manufacturers | Retailers | Other |
| BARILLA G. E R. FRATELLI | ASDA | IGD - ECR UK |
| COLGATE-PALMOLIVE | CARREFOUR | |
| HENKEL | METRO | Consultants |
| JOHNSON & JOHNSON | SAINSBURYS | 4 FLOW AG |
| KRAFT FOODS | ||
| L´OREAL | ||
| NESTLE | ||
| PROCTER & GAMBLE | ||
| SARA LEE | ||
| UNILEVER |
Official Documents:
Inventory Optimisation presentation at Brussels ECR Europe Conference, April 2011 (Break-out)
Project Deliverables: Collaborative Inventory Optimisation Toolkit
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