The State of Inventory Management - 2015

The current state of inventory management can be described as inadequate, or at the very least requiring more attention from CPG companies and retailers at the highest levels to better serve customers.

At worst, dollars are literally walking out the door, and fueling competitors’ revenue.

At best, sales are stalled.

But why? How are CPG companies currently managing on-shelf availability and inventory exceptions and what are they missing? What types of forecasts are being used? And what types of improvements would help them move the needle – and move inventory management to a function that is seen as a thought-leader internally?

With the goal of answering these questions, and in partnership with 8th & Walton, Orchestro surveyed a collection of small, mid-sized, and large CPG companies to investigate inventory issues, levels of satisfaction with existing processes, and where they’d like to see improvements.

Most of the respondents work in sales or supply chain – perhaps unsurprising for a survey around inventory management.

Including the results of a recent study by Orchestro and 8th & Walton, this whitepaper focuses on:

• On-Shelf Availability: The hurdles large and mid-sized CPGs face with managing on-shelf availability
• Service-Level Exceptions: Identifying which service-level exceptions are most important to be monitored and predicted through advanced analytics
• Forecasting: The usage and satisfaction with various forecasting types, frequencies, and granularities