Chronic inventory problems make it tough to achieve company goals and strategies – and cause the finance team to “pull their hair out.”
Inventory Governance takes a two-fold approach: Solve inventory problems as quickly as possible. And resolve the root causes of inventory issues. That’s the way to eliminate chronic inventory issues.
The result: Improved operating margins and increased cash. Companies also realize increased sales revenue and market share.
What is Inventory Governance
Inventory Governance ensures the proper amount of inventory is available to support a company’s business strategies and goals. It is driven by the executive team setting inventory targets. It also requires fixing the root causes when inventory is over or under those targets.
How We Help With Inventory Governance
Oliver Wight’s team of experts have hands-on experience helping companies to develop and sustain an Inventory Governance process. That makes them excellent advisors and educators with real-world experience who have walked in your shoes.
We offer the following Inventory Governance services:
- Advising, coaching, and mentoring on how to utilize the process to drive results
- Education and workshops to further understanding of best practices and how to design the process
- Diagnostic and progress assessments to identify needed areas of improvement. These assessments address executive decision making, people skills and behaviors, process, and supporting tools
Value of Inventory Governance
When companies perform Inventory Governance well, the number of chronic inventory issues is significantly reduced or eliminated altogether. The process becomes second nature for the executive and management teams to ensure the right inventory is in the right locations.
Financial performance improves, particularly operating margins and increased cash. Companies also report increased sales revenue and market share.
What Clients Say About Inventory Governance
- Pharmaceutical Company: $30M inventory level improvements found in two weeks, with root-cause resolutions on underlying issues beginning in six weeks!
- Chemical Company: Inventory target reduction of greater than $50M, sustained after 2 years!
- CPG Company: Identified $50M in stagnant inventory, drove plans to sell $15M, identified root causes, initiated action on the remainder!
Insights on Inventory Governance
White papers: authored by Oliver Wight thought leaders explaining the “whys and the hows” of making business process improvements
Webcasts and Videos: by Oliver Wight educators on Inventory Governance