A process-based inventory turnover improvement approach requires consideration of what the main levers are that control the flow of materials. The reality is that there can literally be dozens, if not hundreds, of processes and sub-processes that define or impact how materials move in your business.
It is not typically practical to try to change dozens of processes at one time. Conversely just trying to change one process at a time in serial will usually make no too little overall change in inventory performance and it will take a long, long time.
While it may seem simplistic the best way to adopt a process-based inventory turnover improvement approach is to identify a small number of the most impactful overarching inventory-related business processes.
In identifying these processes we believe it is best to contemplate:
- What processes control the rate at which inventory moves into the company?
- What processes control the rate at which inventory moves through your company?
- What processes control the rate at which inventory moves out of your company?
Why not try a process-based inventory improvement approach?