From the S&OP Trenches: Quick-Hit Tips to Reduce Inventory

Here the author offers various tips to reduce inventory over a short horizon with very little effort. These tips are simple and easy to implement. Not only that, they can provide a jump-start for some longer-horizon inventory reduction efforts. hy is it necessary to talk aboutinventory “tips?” There are two reasons: First, by the nature of the process, S&OP leaders have some degree of ownership over inventory. Second, many companies implement S&OP with the intention of using the process to better manage the working capital (i.e., reduce inventory and the cash-to-cash cycle). Our goal here is to offer some helpful, quick-hit tricks to reduce inventory during an early- to mid-stage S&OP implementation. Every consultant or project leader Journal of Business Forecasting | Fall 2011 has a desire to start off an engagement or new initiative with a bang—a quick win. It doesn’t have to be a home run— a well-hit double off the center field wall will suffice. So, what is the S&OP equivalent of a lead-off double? In-ventory reduction. INVENTORY REDUCTION SOLUTIONS There is tremendous value in early implementation wins for any process initiative. One can only imagine the positive ...