Corporate Strategy And Look At The Progress Of Achieving Our Objectives

1570 Words7 Pages
I would first review our corporate strategy and look at the progress of achieving our objectives. I would employ inventory management in order to meet our company’s competitive priorities. In order to reduce our inventory, VMI must be employed. Using VMI, our retailers would provide the company with data such as, how many of our products they actually sold. Then we can use this data to form our demand forecasts on how much was actually consumed by customers. Our manufacturing plants can then improve production, develop more accurate inventory plans, and ultimately reduce inventories. With our large inventories, our inventory holding costs, insurance, and shrinkage from pilferage, obsolescence, and deterioration can be expensive. We need to plan so that we can minimize inventory and its associated costs while also meeting the needs of our customers and maintaining high customer satisfaction. We can do this by cycling inventory and reducing the lot size by only ordering less and reducing our carrying costs. We need to improve demand forecasts and cut lead times in order to reduce our safety stock inventory. With more accurate forecasts we can place orders closer to the time when they must be received and further cut our inventory holding costs. Another way to reduce safety stock is to reduce supply uncertainties. We must look at our suppliers and remove those that are not timely or those that have quality issues. Our company should look for alternative suppliers who
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