--speed,
--immediate accessibility,
--instant gratification.
--To keep up with the demand, manufacturers have to
--procure raw materials,
--build components,
--assemble finished goods,
--physically ship
them across the world.
--Yet they are challenged
--shorter and shorter lead times,
--an unlimited range of finished goods SKUs,
--selling goods and procuring materials globally
--unending pressure to do more with less.
This concept of speed when applied to material replenishment has come to be kno
wn as Inventory Velocity .
engineered to
Currently, most business systems in large corporations do not provide this level
of detail.
--The information stored in ERP/MRP/supply chain systems is largely after the fa
ct.
--These systems carry the inventory data but not the inventory cycle data.
--Since the materials, purchasing and logistics functions act as silos, it is no
t easy to extract raw data and perform analytics to identify the improvement are
as.
Recommendation
--A recommended approach would be to build or use a collaborative real- time sys
tem that can store and track this data.
--Starting small by taking one type of inventory (finished goods or raw material
s) is advisable.
--If the raw-material inventory is the first to be tackled, then it is essential
to identify key suppliers of high-value parts and engage them in this process.
--Once the measurement is done, the parameters for improvement should be identif
ied (examples: reduction in lead time or smaller lot sizes or frequent delivery)
and
desired goals should be set