1. Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Funding Growth
How much inventory is in the world? The short answer is that no one
knows for sure, and no one keeps track of it at a global level.
However, with some simple data points and deductions, one can
probably arrive at a reasonable approximation of how much inventory
is out there. This question gives us an understanding of how efficient
the world is in turning inventory into economic output.
Read: Funding Growth
Multi-echelon inventory optimization takes a strategic,
network view of the supply chain and establishes
inventory policies based on tailored strategies. Key
ingredients to successfully executing this are:
• Institute a single view of demand, tied to the real
end customer.
• Segment demand and supply based on different
products, customers and times.
• Tie inventory management to business strategies.
• Deploy tools that optimize, produce multiple
scenarios, and provide the means by which to make
and deploy policy decisions.
• Make inventory policy management a regular
process with integrated strategic, tactical and
operational cycles.
Meet the Author:
Kelly Thomas is a supply
chain professional and
executive at JDA Software. He
has nearly 30 years of
experience in leading teams in
design, development, sales
and delivery of supply chain
management and
manufacturing execution
solutions.