The firm’s new resource explains that the most critical aspect of any inventory management playbook is the inventory management system, which will ultimately help businesses to plan better, procure more efficiently, and fulfill in an optimized manner.
TORONTO, Aug. 31, 2023 /PRNewswire/ – Businesses have endured shocks to the supply chain due to the COVID-19 pandemic, leading to significant impacts on the procurement of materials, bottlenecks in logistics operations, and rapidly changing consumer behavior. To overcome supply chain obstacles, businesses will need to transform the way they think about inventory in the continuously evolving supply chain environment. To support operations leaders and chief information officers (CIOs) in their efforts to be agile and resilient in their approach to inventory management, the firm has released its new industry research blueprint, Advanced Inventory Management.
Info-Tech Research Group highlights five key points in building an inventory management playbook: 1. Assess inventory management maturity, 2. Finalize the end state for the three pillars of inventory management, 3. Finalize inventory costing and valuation requirements, 4. Define performance management framework, and 5. Evaluate and implement an inventory management system. For the full step-by-step breakdown, download the complete resource. (CNW Group/Info-Tech Research Group)
“The backbone on which global supply chains had been built, ‘just-in-time’ inventory management, was shattered by the pandemic and other geopolitical events,” says Shreyas Shukla, principal research director in the Manufacturing Industry practice at Info-Tech Research Group. “For a long-term solution, businesses will have to balance regionalization as a means of risk aversion with digitalization as a means of capability building. This is where an inventory management playbook can help.”
Based on the firm’s research, the new blueprint unpacks and analyzes the components of an inventory management playbook as well as studies advanced features of inventory management systems that can be deployed to prepare them for the next shock to the supply chain.
Info-Tech Research Group has created a five-step process operations leaders and CIOs can follow to support building an inventory management program that can withstand supply chain challenges. The recommended process is as follows:
Assess inventory management maturity: Step one helps leaders in charge of inventory management to understand the maturity of their current system, review defined best practices, and define the end state of their inventory management ecosystem.
Finalize the end state for the three pillars of inventory management: The second step requires defining optimization, control, transportation management, and visibility requirements, as well as identifying needs for warehouse management.
Finalize inventory costing and valuation requirements: Step three asks leaders to define cost- and expense-tracking requirements and finalize the methodology for inventory valuation, analysis, and reporting.
Define performance management framework: The fourth step in the process includes identifying key performance indicators (KPIs) that will help track organizational objectives and define KPI-level granularity, calculation methodology, and dimensions. Leaders will then identify data sources and define reporting requirements.
Evaluate and implement an inventory management system: The fifth and final step supports operations leaders and CIOs in evaluating available software options and relevant features, designing conceptual architecture and identifying integration requirements, and building an implementation plan.
With generative AI tools and technologies continuing to emerge, Info-Tech Research Group advises that artificial intelligence (AI) can supercharge inventory management and build upon the abilities of modern inventory management systems. Additionally, with the right inventory management system in place, organizations can leverage accurate demand forecasting, better management of operational costs, new sales channels, and easy integration with other systems.
To access the full research, which provides a conceptual overview of an inventory management playbook, a snapshot of the features of a modern inventory management system, and a self-assessment tool to help measure inventory management maturity, download Advanced Inventory Management.
To connect with an Info-Tech Research Group analyst for expert insights on inventory management, the supply chain, and more, contact Sufyan Al-Hassan, public relations manager at Info-Tech Research Group, at [email protected].
Additional related research can be found here:
About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading information technology research and advisory firms, proudly serving over 30,000 professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For more than 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
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SOURCE Info-Tech Research Group
