National instrument products manufacturer, while performing well compared to benchmarks across most metrics continues to lag in relative levels of inventory investment.
- Performance lagged industry benchmarks substantially in area of inventory investment
- With tens of thousands of finished goods products plus a complex set of bill-of-material relationships the means to more precisely pin-point key areas of opportunity was both complex and challenging.
- Clarify potential inventory investment improvement opportunity
- Distinguish level of opportunity related to finished goods inventory versus raw material and component parts inventory
- Gain support and buy-in across client organization for the level of opportunity
- Core value performance performance measurement put in place
- Developed means to determine target finished goods inventory while gaining buy-in to methods
- Established means to determine demand and associated supply requirements for raw material and component parts while also gaining buy-in to methods
- Solid understanding and buy-in to the problem as well as to the size of the opportunity achieved.
- Visibility to the opportunity now available at individual product level providing for tiering by supplier, product category and by buyer
- Bill-of-material mapping provides greater visibility and understanding of linkage between components to finished goods products.
- Pursuit of the clearly identified opportunity is now underway. Stay tuned!
Inventory Opportunity Summarized by Product Value Categorization
Visibility of Opportunity by Product Presented