Money tied up in inventory is money that can't be spent elsewhere. Furthermore, it is money that is subject to loss due to product obsolescence, fluctuating demand, and deterioration in quality. Inventories represent the single largest investment for many companies. Effective management of the investment is an on-going challenge. Although companies have implemented programs like JIT to address part of the inventory problem, few have taken a comprehensive approach to the issue. Recent inventory write-offs at some of the more progressive high-tech companies demonstrate that inventory management still needs some development. Not only do companies have to address the inventory within their four walls, they also have to address the inventory exposure that faces them further upstream in the supply chain. In other words, just because inventory isn't physically located in the warehouse, it doesn't mean the company is not accountable for it.
Symphony can develop and implement inventory management programs that strike at the root cause, and place accountability and ownership where it makes sense. A few examples of what we can do to have a favorable impact on inventory are:
For examples of what we've accomplished in reducing inventory exposure, please consult the following case studies:
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