In a business environment marked by inflation, rising interest rates, and economic uncertainty, inventory decisions have never carried more weight. The challenge is no longer simply managing inventory—it is right-sizing it to align with demand, service expectations, and financial goals.
Effective inventory planning can help manufacturers navigate rising logistics costs, supply chain disruptions and inflation. Learn how demand planning, replenishment and advanced planning strategies can improve customer service, working capital and resilience.
Conversation with my colleagues from the Society for the Advancement of Consulting’s Supply Chain Special Interest Group, Lisa Anderson from Los Angeles, California and Antonio Zrilic from Zagreb, Croatia discussing inflation busting strategies that companies can adopt to ameliorate the effects of rising inflation.
Experts advise looking at the coming months with an eye toward estimating what will happen to cash balances. "Proactively managing cash flow is critical right now," mentions Lisa Anderson, president of LMA Consulting Group.
Inflation is rising faster than at any time in recent memory. Businesses must deal with rapid cost increases by managing cash flow efficiently and communicating effectively with customers and suppliers. The benefits of inventory reduction must be balanced against the need to maintain critical stock for top customers.
"Proactively managing cash flow is critical right now," says Lisa Anderson, president of LMA Consulting Group, Claremont, Calif. This can be done by running periodic forecasts.
Lisa Anderson, manufacturing and supply chain expert and president of LMA Consulting Group discusses practical insights on how to unlock operating capital and fuel growth.
Lisa Anderson, manufacturing and supply chain expert and president of LMA Consulting Group states there are operational and supply chain priorities required to be ready to absorb additional sales". One of the most important components is to have planning and scheduling processes required to be ready to absorb capabilities.
Manufacturing has struggled to produce what customers want on-time without spending a fortune and tying up excess cash unnecessarily in the wrong, "just-in-case" inventory. It is a tough environment spiraling out of control with supply chain chaos.
As executives continue to navigate these volatile economic conditions, the focus on inventory management increases. It is especially tough to determine what to do if you don't know if sales opportunities will dramatically increase as the competition falters and consumers drive demand or if sales will tank as recession fears increase and business optimism falters.
