Excess Inventory Hiding Behind the IO Calculation!
When MOQs, pack sizes, or supplier constraints force your order quantity above EOQ (which is probably most SKUs, most of the time), you’re already carrying more cycle stock than the … Read More
Tag: safety stock
Optimizing The Order To Cash Process – What Is Your Priority?
When companies take a hard look at their business model and the underlying process, what is the key objective that is motivating them?
1. Return on Investment
2. Increasing Sales
3. Cost Reduction
Although all of the above are good objectives that lead to healthier businesses, companies are also driven by the latest buzz words – the latest consulting mantra, industry trend, and a flashy new technology from a sexy software company.
Optimizing the basic Order to Cash process will yield the cliched low-hanging fruits and result in a more compacted Cash-to-Cash cycle.
Inventory Optimization vs. Days on hand
Why is it important to learn new techniques than banking on century old DOH measure? The Days of Supply is a thumb rule calculation used to manage inventory during the … Read More