More than 50% of the companies surveyed saw a decrease in inventory levels during 2009, according to a recent Finished Goods Inventory Management Report by Tompkins Supply Chain Consortium.
The study reveals that even during a depressed economy, many companies found ways to substantially reduce their finished goods inventory levels. A total of 105 companies participated in the survey.
According to the survey, the top five reasons for these inventory changes are: smarter planning (cited by 21% of respondents); a drop in sales (21%); management focus (20%); sales growth (11%); and inventory mix (5%).
Despite reduced inventory levels, customer satisfaction remained the same or improved for nearly 80% of these companies.
The inventory management department is often responsible for setting finished goods inventory targets, but the responsibility is typically shared by several supply chain functions.
Inventory turns, inventory balances and days of supply are the top- three measurements used for finished goods inventory. The supply chain areas in which changes are most needed, with respect to this type of inventory, are processes, people, and inventory policies.
For additional results from the Finished Goods Inventory Management Report, visit: http://www.tompkinsinc.com/finished-goods-inventory.