Unfortunately, as inventory balances grow, that growth often isn’t reflected in the current rates. The utility suffers a lag or delay in being able to recover these costs (if ever) in their rates. These two impacts on inventory costs help make the case for inventory optimization and using inventory analytics to your advantage.

2 Making the case for inventory optimization Inventory is not free. Chances are, you are holding more inventory than is in your rate base, possibly diminishing your earnings potential through regulatory lag and O&M carrying cost expense. The days of inventory being considered an asset with expected rate recovery are long gone. Inventory ...

Inventory optimization for Medtech Case study A global medical device company struggled with high inventory days on hand (DOH) and excess and obsolete inventory, which affected its profitability. Deloitte conducted an in-depth inventory analysis to increase visibility and identify inventory reduction opportunities,

Before inventory can be effectively managed, businesses must ensure that their inventory records are accurate and that there are processes in place to handle any variances. To improve inventory accuracy as part of a working capital optimization initiative, businesses should: • Review the frequency of inventory counts: you may

If you carry too little inventory you may lose sales and negatively impact your cash flow. Make your working capital work for you: Strategies for optimizing your inventory management is the fourth in our working capital series, which identifies actions you can take right now to free up cash. While there are numerous options, this series focuses ...

inventory reduction In recent decades, several mergers substantially expanded the company’s geographic reach and product lines to reflect customers’ changing lifestyles. While profits continued to grow, leaders felt that additional value could be gained by reducing working capital, particularly through inventory optimization.

2023年4月3日 · Inventory management, quality control, and customer service fall short in a tight job market; retailers often lack advanced analytics to make insightful decisions. Siloed functions within the business hinder connectedness within the ecosystem; last-minute strategic and operational guidance communicated too late to suppliers disrupts delivery.

• Inventory and cash flow/supporting processes: In this article, we will examine how improving inventory working capital is a lever that can contribute to cost savings by reducing inventories. Inventory reductions can occur in a stepwise fashion, by first optimizing levels to meet the needs of the supply chain, and then

from an inventory perspective. For instance, it makes sense to periodically analyze accounts and SKU profitability to identify slow-moving, obsolete and non-profitable inventory so you can reduce inventory levels. It’s also important to consider the cash flow implications of changing your supply chain strategy. Companies that

Perform end-to-end planning by integrating demand, inventory, and supply chain planning across the global network to rapidly assess the impact of business decisions and evaluate what-if scenarios. Sense, analyze, and respond quickly and effectively to changes in the business environment, localized events, and competitor tactics, and perform ...