unwanted and unusedstock

The life cycle for

1. The Birth of New Stock

45% of executives have little or no data available on their supply chain. Thismakes it impossible to identify the correct inventory gaps.

The top priority for 63% of supply chain managers is to lower inventory withoutcompromising availability.

Two-thirds of businesses believe it is getting harder to forecast demand.

2. Stock GrowthHolding excess inventory can increase annual supply chaincosts by as much as 32%.

The average annual Inventory Carry Costs for a $5 Billioncompany is $53 million.

Overstocks are common in 83% of organisations.

3. Stock Integrity DeclinesUp to 30% of space in an average warehouse is used to storefresh air or unwanted products.

Waste in the supply chains for slow and obsolete inventoryamounts to approximately 0.3% of revenue.

4. Stock Disposal

of supply chain professionalsadmit to holding too much excessor obsolete inventory within their

business.

29%Excess and obsolete inventory coststhe typical distributor a quarter of

its value per year to manage, storeand remove.

25%

The Opportunity...Companies will make or save $3 trillion through optimizedlogistics and supply chains through 2022.

Top performing companies spend 7.3% of theannual value of their inventory to carry it, whilstmedian and low performing organisationsspend 10% and 16.4% respectively.

Average performing companies spend twice as muchon supply chain costs compared to high performingcompetitors.

High performing organisations are 3.5x morelikely to embrace analytics.

95% of outbound orders are completed byorganisations that utilise analytic tools.

Supply chain efficiency improved in 59% oforganisations with analytical capability installed.

The Solution?Analytics...

https://www.accenture.com/in-en/insight-global-operations-megatrends-big-data-analytics

http://www.aberdeen.com/research/10210/10210-rr-supplychain-analytics-optimization/content.aspx

http://www.logisticsmgmt.com/view/inventory_optimization_show_me_the_money/warehouse

http://multichannelmerchant.com/opsandfulfillment/survey-most-companies-still-struggle-with-inventory-management-05062007/

http://www.bain.com/Images/BB_Supply-chain_survey.pdf

http://retailowner.com/Need-to-Learn/Inventory-Profits-Cash/Excess-Inventory-Costs

http://www.e2open.com/resource-center/resource/vendor-managed-inventory-strategies-survey-results-2015

https://www.accenture.com/us-en/insight-digital-supply-network-modern-supply-chain-management

Sources:

http://hub.relexsolutions.com/state-of-retail-supply-chain-2015

http://www.igd.com/Research/Supply-chain/Strategy-planning-technology/29295/Forecasting-demand-in-a-world-of-uncertainty/

http://www.total-logistics.com/logistics-news/published-articles/getting-your-supply-chain-into-shape.html

http://www.supplychainbrain.com/

http://www.industrialsupplymagazine.com/pages/Management---Value-of-excess-inventory.php