Lead time is one of the most important factors influencing inventory levels. Managing it with suppliers is key to effective inventory management. To optimize supply flow and reduce lead times, consider the following: 1-Diversify Suppliers: Spread risk by working with multiple suppliers. 2-Strengthen Relationships: Build close and transparent connections with your suppliers. 3-Request Production Plans: Align your inventory planning with the suppliers' production schedules. 4-Respond Quickly: Act swiftly to new developments affecting inventory. By taking these steps, you can better manage inventory levels and lead times.

To address this, focus on improving demand forecasting to ensure more accurate order quantities, minimizing stockouts or excess inventory. Establishing appropriate safety stock levels is critical to buffer against supplier delays. Maintain close communication with suppliers to stay informed of their lead times and potential risks. Leveraging inventory management software helps me track stock levels and set automated reorder points. Diversifying suppliers when possible reduces reliance on a single source, while ongoing performance monitoring helps fine-tune processes and mitigate inefficiencies.

Establishing accurate reorder points based on sales trends and safety stock has been critical in optimizing inventory levels. I’ve also found demand forecasting using historical data and ABC analysis essential for prioritizing stock. Building strong relationships with suppliers, focusing on reducing lead times and enhancing communication, has allowed more flexibility and improved stock availability. Integrating these strategies with SAP ERP has consistently improved my inventory management, leading to cost savings and higher service levels.

From my point of view it is very important to apply some strategies i.e. rolling forecast which includes a short term forecast ( 6 months seized forecast including lead times, buffer/safety stock, In transit goods, seized 3 months confirmed orders with agreed inventory days). and long term forecasts (36 months) need to be discussed following S&OP with all the stakeholders for the future. These basics at least will help to avoid any struggling to manage inventory levels.