Inventory Optimization

Driving inventory risk down and improving flexibility.

In an era where the price of working capital is ever expensive and clients are demanding rising levels of customers’ service, inventory management plays a key role in addressing both issues.

Setting the right service levels and inventory investment can help drive alignment with financial goals.

Correctly managing the inventory is a challenge that has drastically changed with new paradigms, such as Vendor Managed Inventories and newer and faster information technologies.

“Tailored and innovative solutions to overcome problems.”

LTPlabs has performed several projects within this scope that resulted in both strategic changes in inventory management and drastic improvement on operational replenishment policies.

We take a two-step approach to perform most inventory optimization projects. The focus is on obtaining tailored and innovative solutions to overcome the problems diagnosed in a first step.

  • Deepening the data and process analysis, which contributes to the current inventory: demand, supply and policy.
  • Analyzing the current inventory management strategy and decompose the current inventory in its main components: cycle, safety, logistics, and either surplus or scarcity.
  • Translate the insights obtained through the diagnosis in new lines of action either at strategic, tactical or operational levels.
  • Implement the new strategy/ policy with the possibility of continuous service approach (such as replenishment as a service).

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Client Results