Inventory Modelling

We help you to achieve the right level of inventory in your business, to service your customers’ demands at the lowest possible cost.

Through the use of our bespoke Inventory Modelling Tool, we can provide a rapid view of your current inventory holding, identifying key areas of under- and overstock in order to make immediate improvements.

Our model is customised to your market and your demand patterns, taking into account seasonality and identified anomalies, in order to reflect the reality of your business. This is done in collaboration with your team to ensure the validity of any outputs.

There are five key areas we provide clarity on:-

  • Clear visibility on historic demand patterns and future trends
  • Understocked SKUs – Where you may miss demand and service may suffer
  • Overstocked SKUs – Where you are carrying excess cost for the demand
  • Re-order points by SKU – When you should be re-ordering products based on MOQs / EOQs
  • Obsolete inventory – SKUs that have zero demand

Based on the output identified from the modelling process, clear actions and accountabilities can be identified in order to optimise inventory holding whilst maximising service to form an implementation plan.

This implementation plan can be embedded within your organisation utilising the Inventory Model whilst we support to ensure the underpinning behaviours surrounding inventory management are sustained over the long term.

The typical inventory benefits clients realise through working with us are:-

  • 10% reduction in inventory on hand
  • Associated weighted average cost of capital
  • 10% improvement in service measure – OTIF and availability
  • 2% associated revenue growth

Summary

Duration: 4-8 weeks
Team: 2-4 people
Location: On-site or remote
Enablers
• Access to key inventory data
• Sales history
• Sales forecast & accuracy
• Purchase history
• Inventory holding inc MOQ’s
• Lead times
Deliverables
• Reduction in inventory and working capital
• Improvement in OTIF and availability
• Revenue growth potential

"The results achieved were sustainable and part of the business culture and provided a clear sense of opportunity, a roadmap for delivery, and a quality of people that underpinned their delivery”

Gavin Williams, UK Managing Director, GXO Logistics

"Working with Libra was extremely beneficial. It allowed us to develop a roadmap for efficiency gains in the short term and an operating model that allows further change as we continue in our rapid growth."

Andrew Wakelin, Chief Operating Officer - Aspen Pumps Group

© 2022 Libra Europe Ltd. All Rights Reserved.
Website design and build by Grey Matter | web design sheffield