The Supply Chain Revolution: What’s Inside – Chapter 5

Art Koch’s Profit Chain® Tips
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain
Volume 5 | Number 12 | September 2024

Continuing my What’s Inside the Book series – here I share what you’ll find in Chapter 5: Inventory is Evil!

Inventory is Your Security Blanket

Inventory is Evil!

Introduction to the Inventory Concept

• While inventory is necessary for business operations, like scuba gear is for diving, both can become burdens if not managed correctly.
• An overburdened diver is like a business weighed down by excess inventory.

The Real Cost of Inventory

• Inventory hides inefficiencies and drives up the total cost of ownership, which negatively impacts customer service and profitability.

Inventory Is Evil!

• Hides problems, and by hiding problems, delays solutions – the delays cost hard earned profits!

Inventory Myths Debunked

• Break down common myths about inventory, such as the belief that high inventory levels are needed for good customer service.
• Offer solutions for each myth to help businesses optimize their inventory levels.

Strategies for Effective Inventory Management

• Introduce effective inventory management strategies such as Plan for Every Part (PFEP) and root-cause analysis to maintain optimal inventory levels.
• Emphasize the importance of understanding the total cost of ownership and making informed decisions based on comprehensive data.

Embrace Lean Inventory Practices

• Encourage businesses to reassess their inventory practices and consider implementing lean methodologies to enhance efficiency and responsiveness.
• Provide a teaser about upcoming detailed solutions in the next chapter or a workshop offering to help businesses implement these strategies.

Watch the video below for Chapter 5: Inventory is Evil!

Carpe Diem,

Art Koch