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Different players – different targets. For a profitable supply chain, effective inventory management is a key factor often challenged by conflicting requirements of the different players involved in the business planning process (Sales & Operations Planning).
The Sales department requires a high level of finished goods inventory in order to provide good customer service and satisfaction. Supply Chain Operations are interested in having high levels of raw material inventory allowing them to better react to uncertainties in supply. However, increased finished goods and raw material inventories will lead to higher inventory carrying costs, which will have a negative impact on financial performance.
In contrast to the sales and operations functions, the finance department will demand lower inventories to reduce the company is capital investment and improve cash flow.
If the competing objectives of high service levels and low inventory are not properly balanced, this will have a negative effect on customer service and financial performance with a corresponding loss of sales, reduced business confidence and profit.
Westernacher has been innovating business and IT for almost 50 years. We are successful in helping our customers with many different transformation initiatives by providing solutions for operational, organizational and technical issues:
To provide you with a better understanding, we offer an Inspiration Day, where we show you what a Planning centered IT landscape looks like and how it might impact your company. This is achieved through demonstrations and discussions with our Planning experts.