Who Owns Inventory?
Has this ever happened in your organization: You end up selling less than was predicted by your demand plan, and it becomes unclear what to do with the unwanted leftover inventory.
Far too many businesses waste time and resources because of a disconnect between their demand, supply, and financial plans.
In our white paper, Who Owns Inventory?, Oliver Wight Principals explain how to think of inventory as a true strategic asset.
As a part of this attitude shift, you’ll develop processes that consider:
- Seasonality in your demand
- Advantageous behavior like building inventory before a new product launch
- The need for safety stock as a hedge against demand and supply uncertainties
By addressing these needs, your organization will not only reduce unplanned inventory but develop a cohesive plan for how to handle it.
The white paper also explains how these issues may be a sign of larger organizational issues, and what you can do to address them.
Asking the Wrong Questions
For most companies, asking who “owns” unplanned inventory is the wrong question and potentially a sign of deeper issues.
Rather than focusing on assigning responsibility, organizations should attempt to identify the root cause of the inventory decisions they make, whether it be a demand, supply, product management, or financial issue.
Ultimately, the concept of inventory “ownership” looks different when it is the result of an agreed-upon tactic, something this white paper can help companies foster and implement.
Having proper strategies in place means senior management can more effectively make decisions when issues arise, rather than wasting time figuring out if it falls under their purview.
Another facet of inventory management that is often ignored is lead time or the amount of time between each stage of product delivery. This is an important factor in explaining why you have inventory when you do, but may not be examined with the same level of scrutiny.
Our white paper dives into these ideas and many more, giving organizations like yours a firm idea of the tactical readjustments necessary to meet their inventory challenges.
Inventory Tactics as a Part of Integrated Business Planning
Issues with your inventory strategies are most likely not a root cause of your problems, but a symptom of them.
To ensure your business processes meet best-practices and then implemented throughout your organization, your senior leadership team should work through the Integrated Business Planning (IBP) process. IBP can help a business craft a unified vision and ensure it is structured to meet its goals.
Whether you’re looking to hone in on specific issues with inventory management or craft an organization-wide vision for the future, Oliver Wight is here to help. For more than 50 years, Oliver Wight has been raising the bar for organizations and inspiring business excellence. Is your company next?
Download Who Owns Inventory? and discover the Oliver Wight difference.
Related Article: Will Your Demand Management Plan Pay Off?