Supply Chain Solutions for Hidden Inventory

1. Supply Chain Solutions for Hidden Inventory ! A supply chain management solu?on that op?mizes inventory levels and visibility What is excess hidden inventory and why is it a problem? Excess hidden inventory is the inventory that is not accounted for in the official records of a business, but s?ll exists in the supply chain. It can be caused by various factors, such as inaccurate demand forecas?ng, poor inventory tracking, human errors, supplier issues, or the?. Excess hidden inventory can have nega?ve impacts on a business, such as: Increased inventory carrying costs, such as storage, insurance, taxes, and obsolescence. Reduced cash flow and profitability, as excess inventory ?es up capital that could be used for other purposes. Lower customer sa?sfac?on and loyalty, as excess inventory can lead to stockouts, delays, or quality issues. Higher environmental footprint, as excess inventory consumes more resources and generates more waste.

2. According to a study by the Aberdeen Group, the average manufacturer has 11.4% more inventory than it needs, and this excess inventory costs the company 25% of its total inventory value each year. The same study also found that the top performers in inventory management had 15% less inventory, 17% stronger fulfilment rates, and 35% shorter cash-to-cash cycles than their peers. Read more@ h?ps://sunbridgeglobal.com/supply-chain-solu?ons-for-hidden-inventory/