How do you optimize inventory with stakeholder input?

1 Identify your stakeholders

The first step is to identify who are the key stakeholders involved in your inventory management. These may include customers, suppliers, distributors, salespeople, production managers, finance managers, and others. Each stakeholder has a different role and interest in your inventory, such as quality, availability, delivery, price, cash flow, and customer satisfaction. You need to understand their needs, expectations, and constraints, as well as how they communicate and collaborate with each other.

2 Define your inventory goals

The next step is to define your inventory goals and metrics. These are the targets and indicators that you use to measure and improve your inventory performance. You need to align your inventory goals with your business strategy and your stakeholder input. For example, if your customers value fast delivery, you may want to optimize your inventory for service level. If your suppliers offer discounts for bulk orders, you may want to optimize your inventory for cost. You also need to choose the right metrics to track your inventory, such as turnover, fill rate, accuracy, or days of supply.

3 Analyze your inventory data

The third step is to analyze your inventory data and identify the gaps and opportunities for optimization. You need to collect and organize your inventory data from various sources, such as your ERP system, your POS system, your warehouse management system, or your supplier portal. You need to use data analysis tools and techniques, such as ABC analysis, EOQ model, safety stock calculation, or demand forecasting, to understand your inventory patterns, trends, and drivers. You need to share your findings and insights with your stakeholders and solicit their feedback and suggestions.

4 Implement your inventory plan

The fourth step is to implement your inventory plan and monitor its results. You need to translate your inventory goals and metrics into actionable steps and assign roles and responsibilities to your stakeholders. You need to communicate your inventory plan clearly and regularly with your stakeholders and ensure their buy-in and support. You need to use inventory management software and systems, such as barcode scanners, RFID tags, or inventory dashboards, to execute and track your inventory plan. You need to evaluate your inventory performance and report your outcomes and challenges to your stakeholders.

5 Review and improve your inventory process

The final step is to review and improve your inventory process and adapt to changing conditions. You need to conduct periodic reviews and audits of your inventory process and check its alignment with your inventory goals and stakeholder input. You need to identify the strengths and weaknesses of your inventory process and the best practices and lessons learned from your inventory plan. You need to solicit feedback and input from your stakeholders and involve them in your continuous improvement efforts. You need to update and revise your inventory process and plan as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?