Inventory solutions in the automotive industry

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Inventory solutions in the automotive industry One of the best inventory solutions in the automotive industry is to provide agile and robust action against complex and competitive market conditions. In the industry, due to the large number of items that cannot be handled manually, the automotive industry has always been at the forefront of inventory optimization. To find inventory solutions in the automotive industry, the challenges must be identified and these are: The unpredictability of slow-moving items and inventory strategy. Product life cycle management of products with declining sales. Precision management of large assortment forecasting. Establishing a reliable demand base for use in forecasts. Make fact-based decisions with reliable data during discussions with Sales and Operations. SKU proliferation Inventory Solutions in the Automotive Industry 3Customers expect suppliers to be able to provide anything at any time. In response to this demand, many companies have exploited their assortment strategy to encompass thousands of different SKUs.

The problem is, how much do you know about the items within the ever-expanding assortment? Do you know which items offer the highest profitability or which are the most important to your customers? Likewise, do you know which items are costing you the most money? While offering millions of different products certainly gives customers plenty of choice, keeping up with these exploding ranges can be a constant battle. After all, it's no Japan Telegram Number Data secret that usually 80% of a company's turnover is generated from just 20% of the assortment. Consequently, by having such a large variety, many companies unnecessarily invest considerable resources in items that offer limited value to the business or customer. To ensure that assortment decisions are made in line with both customer expectations and the demands of the broader industry, companies must ensure that the assortment strategy is a clear reflection of business objectives and expectations. the client's.

Delivery time accuracy Inventory Solutions in the Automotive Industry 2How does lead time accuracy affect our inventory level? How does it affect your ordering pattern? It can be challenging to identify normal and abnormal delivery times and figure out how to account for abnormal delivery times. It is essential to find a balance between the two in the long term. In most situations, delivery times are determined by the supplier. However, the question you need to ask yourself is: how can your suppliers reduce delivery times? In some cases, this may be a case of renegotiating the terms of the supplier contract. However, when this is not possible, more strategic measures must be taken. Additionally, when you have too much inventory with short lead times, it requires further investigation. Maybe there is a refund opportunity based on order volume or an existing service level agreement with a customer in place. Reviewing customer consumption patterns and aligning them with a fulfillment plan will reduce unnecessary demand spikes.