Everyone wins when companies use performance optimization platforms to right-size their inventory positions.
In today’s business landscape, where labor shortages, supply chain constraints, and market variability reign supreme, ensuring that the right products are in the right place at the right time has become a critical challenge for companies. Traditional inventory management solutions and processes that rely on stability and predictability have proven ineffective. In this era of heightened uncertainty, the key to success lies in continuous, data-driven assessments, planning, and decision-making. By embracing performance optimization platforms, companies can achieve continuous inventory right-sizing, resulting in improved outcomes for all stakeholders.
The Changing Inventory Landscape
In the past, inventory requirements were relatively predictable as inventory drivers remained stable. However, this is no longer the case. Companies implementing advanced planning systems without accounting for lead time changes now grapple with increased inventory levels.
Lora Cecere, founder of Supply Chain Insights, recently stated, “Since 2007, businesses have added 27 more days of inventory, highlighting the need for adjustments in optimization engines to cope with heightened variability.”
The Importance of Fluid Inventory Policies
Fluid inventory policies and processes have become increasingly crucial in today’s business environment, where inventory is no longer considered “free.” Companies must establish policies that align with market conditions, optimize onsite and transit inventory levels, and consider factors such as visibility, supplier partnerships, demand volatility, and accurate forecasting. By doing so, organizations can reduce costs, increase return on working capital, and improve overall operational efficiency.
GAINS: Empowering Companies to Right-Size Inventory
GAINS, a cloud-based supply chain planning software, offers a solution to companies’ inventory challenges. The platform provides powerful insights and capabilities that empower companies to make informed decisions, increase sales, enhance service levels, and reduce operating costs. By leveraging GAINS’ proven demand, supply, and inventory optimization platform, businesses of all sizes can achieve ongoing cost and profit optimization.
Continuous Improvement with GAINS
Implementing GAINS’ solution enables companies to improve their inventory planning visibility and continually refine their inventory positions. By leveraging the platform’s capabilities, organizations can right-size their inventory investments, automate order optimization, enhance planning efficiency, improve service levels, optimize product flow, and consider transportation, production/distribution, and inventory costs. GAINS’ robust scenario planning feature equips businesses to respond proactively to challenges and achieve desired outcomes.
Navigating the Path to Performance
GAINS enables companies to make better inventory decisions, resulting in immediate results, improved financial performance, and enhanced customer satisfaction. The platform offers inventory policy management that helps achieve optimal service levels by reallocating investments across different product lines and stocking locations. GAINS follows a pragmatic approach to supply chain management, assisting companies to implement their solution in phases to gain incremental value and drive continuous improvement.
Preparing for the Next Disruption
While supply chain volatility may have eased, organizations must not become complacent. The next disruptive event is likely just around the corner. Companies must adopt supply chain solutions that continuously right-size their inventory positions to navigate future uncertainties. GAINS provides a robust, cloud-based platform that equips businesses to optimize inventory levels, ensure resilience, and meet demand effectively.
Case Studies: Performance Amid Market Volatility
GAINS’ success stories illustrate how companies have benefited from continuous inventory right-sizing. For instance, after implementing GAINS, Grimco, a national wholesale sign supply manufacturer and distributor, saw significant improvements in inventory health, core item focus, and order fulfillment rates. Benco Dental, the largest privately owned full-service distributor of oral healthcare technology and supplies, achieved increased market share and superior customer service by leveraging GAINS’ inventory optimization capabilities.
Grimco – Wholesale Sign Supply Manufacturer and Distributor:
Grimco faced challenges managing its inventory and meeting customer demand for next-day order fulfillment. By implementing GAINS, Grimco was able to improve its inventory health and increase its next-day order fulfillment rates. The platform provided enhanced visibility into demand patterns, lead times, and market signals, allowing Grimco to optimize its inventory positions. As a result, they reduced excess stock, improved working capital, and enhanced customer satisfaction by consistently delivering orders on time.
Benco Dental – Full-Service Dental Distributor:
Benco Dental is the largest privately owned full-service distributor of dental supplies, equipment, and services in the United States. They turned to GAINS to address the challenges of managing a complex inventory portfolio and optimizing product flow across their supply chain. By leveraging the platform’s data-driven decision-making capabilities, Benco Dental was able to optimize its order size and frequency, reduce stockouts, and improve service levels. GAINS helped them identify optimal stocking locations and determine the right inventory levels to meet customer demand efficiently.
These case studies illustrate how companies from different industries can benefit from performance optimization platforms like GAINS. By leveraging data-driven insights and continuous inventory right-sizing, businesses can achieve improved operational efficiency, reduced costs, better customer service, and increased profitability.
Continuous inventory right-sizing has emerged as a vital strategy for companies to thrive in an uncertain and volatile business landscape. Organizations can effectively address the challenges of managing inventory in a dynamic market by utilizing performance optimization platforms like GAINS. The platform enables companies to make data-driven decisions, optimize inventory levels, automate processes, and improve overall supply chain performance.
Through case studies, it is evident that companies across different industries have achieved tangible benefits such as improved customer service, reduced costs, increased profitability, and enhanced operational efficiency. As the market evolves, continuous inventory right-sizing will remain crucial to successful supply chain management, enabling companies to navigate disruptions and drive sustainable growth.
Learn More
Discover how GAINS can help your organization achieve continuous inventory right-sizing, optimize supply chain performance, and drive business growth. Visit gainsystems.com and request a demo to see how GAINS can empower your company to make data-driven decisions, improve service levels, reduce costs, and increase profitability in today’s uncertain business environment.
Related Reading:
[Infographic] Insights from the 2023 GAINS & Supply Chain Management Review Whitepaper
In an Era of Uncertainty, Continuous Inventory Right-Sizing is Essential for Success
GAINS Recognized as a Leader in Nucleus Research’s 2023 Supply Chain Planning Technology Value Matrix
