Saturday, October 25, 2014

INVENTORY

On both the macro and micro level, too many companies have inventory problems. I am not sure the right technology and process would change the bad practices.

They play the cycle counting game, yet look at the reality.  Incorrect inventory. Customer service errors.  Unnecessary safety stock.  Out-of-date/unsellable product that is not written off and disposed of.  Instead it clutters warehouse space and adds to the warehousing picking time and operating costs.

 And yet these firms talk about the low cost of capital and how the extra (unnecessary) inventory is not a problem   And Einstein laughs at their inventory insanity.