If you look at a gymnast or a yoga practitioner adopt a seemingly impossible position, you could easily conclude, "I could never do that", and you would probably be right.
Their strength and flexibility took years to develop, all hidden from you, but you know it took dedication.
Advanced inventory management can appear equally difficult to achieve. To really succeed you have to learn to balance many different variables, and to do all of this in the blink of an eye for thousands, even hundreds of thousands of SKU Locations. It is all too easy to find excuses for NOT achieving genuine change. The data is too dirty. The business case is hard to build. People will not believe we can achieve that level of performance.
Why try? Why move?
An elite athlete has to put in a massive effort to achieve excellence. Why? They see and hear the recognition and ringing endorsements they can secure. They envision being on the victory dais, adorned with the winning medal and the anthem playing. They also know what they must do to win.
In the same way, if you strive for excellence in inventory management it is very important to know why you need to and want to change. It might be profit related, or a better Return on Assets, or a chance to reposition your company in terms of customer service. You really need to start with why you want to change, what motivates you to invest what is needed and what must change.
Easier than you think
You might have a compelling view of the prize, but still be slow to act. Maybe the easy path would be to engage some consultants to help you frame your vision. Maybe you need to take some time and clean up all your dirty data.
However one thing ought to encourage you to move this time. With all the dire warnings about Covid-19 there are some people who have done very well when you look at how they were able to react. They will emerge stronger and fitter than those who did not prepare well.
So how can you do it differently? In the slow moving parts space the Horizon Inventory solution can help you rapidly understand how to transform your inventory management and supply chain practices, and this can be done in days and weeks, not months.
You can quickly find the quantities in which products are sold and in which markets they might be used differently. It is easy to find which items get sold with others and that therefore ought to be stocked together.
You can easily determine inventory levels based on 20+ variables including gross margin, seasonality and popularity, risk and different service needs.
It is easy to model different scenarios and to see how to respond to 30-50% drops in demand across the nation, or just for Victoria.
And this all comes in a package that has proven track records handling hundreds of warehouses and up to a million SKUs, most of which exhibit the slow moving behaviour at which the package excels.
A lot of the hard work has already been done for you. The package is policy and rule driven and all the sophisticated optimisation approaches are under the hood. You can easily and safely navigate your path to better profitability.
You can be confident that with the right leadership and application you can maximise the benefits that are potentially available. One of our clients doubled their revenue over two years while holding the inventory and purchasing headcount flat. Another liberated millions of dollars with some sound insights, the use of the Horizon support warehouse capability and some rule adjustments.
All this can be done quickly and help free up your time and your cash.
Never a Better Time to Act
Delaying adopting a new approach will simple postpone the benefits and most businesses need improved cash flow and ROI now, not in 12-24 months after you beat Covid-19, if you can afford to wait that long.
Excess inventory that is poorly deployed is cash you do not have for the things you really must do now. It can be a lot easier than you might think, and the rewards can happen sooner than you might think.
You will find that you can be far stronger, more flexible and more successful.