Transforming Inventory into a Strategic Weapon

While inventory management is just one component of the global supply chain, it has a profound impact on overall business performance.

How a company positions inventory across the supply chain defines an overall “supply chain posture” that determines its ability to profitably and effectively meet demand in a dynamic marketplace.

What do we mean by supply chain posture? Just as sprinters in a 100-meter race position themselves with extreme precision in anticipation of the starting gun’s shot — poised to get the fastest, strongest push off of the blocks — businesses need to determine the best overall position, or posture, that will enable them to meet their long-term goals.

As the environment around them changes, they must be agile enough to sense these business shifts and adjust their posture accordingly. Inventory policies and processes, working together across the global supply chain, define the overall supply chain posture — and also determine how the business will respond to changes in market and supply conditions.