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Inventory Optimization Addresses the Challenges of Sourcing Overseas - While pricing advantages for purchasing materials overseas have enticed many small and mid-sized manufacturing firms, they now face challenges with additional inventory being carried on the balance sheet and longer and more variable lead times
Inventory Optimization Addresses the Challenges of Sourcing Overseas

 

PRZOOM - /newswire/ - Indianapolis, IN, United States, 2006/09/29 - While pricing advantages for purchasing materials overseas have enticed many small and mid-sized manufacturing firms, they now face challenges with additional inventory being carried on the balance sheet and longer and more variable lead times.

   
 
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Inventory Optimization is proving to be a powerful tool for firms procuring materials from overseas. While pricing advantages for purchasing materials overseas have enticed many small and mid-sized manufacturing firms, they now face challenges with additional inventory being carried on the balance sheet and longer and more variable lead times.

Richard Murphy, vice president of Indianapolis-based TCLogic, discussed these challenges with Ken Rayment, the host of Better Process Podcast, an Internet-based show providing topics ranging from lean manufacturing processes and foreign competition, to manufacturing technology.

”While this additional inventory may be absorbed in larger manufacturers with the financial scale to do so, mid-sized and smaller companies experience stress on their working capital, while the impact on their inventory turn rate can be significant” according to Murphy.

Over the past 10 years, Murphy has seen companies achieve impressive results using inventory optimization technology, including reductions of inventory in the 10-40% range while maintaining or increasing service levels above 98%. “More and more supply chain executives are becoming increasingly aware of the importance that dynamic variables play in effectively managing their extended supply chains. Consequently they are seeking out inventory optimization solutions to help improve their business results,” added Murphy.

To hear the full interview from Better Process Podcast with TCLogic, visit podcasternews.com/.

About TCLogic

TCLogic provides web-based inventory optimization solutions that analyze inventory to increase turns, add profitability and reduce inventory, while helping their customers maintain high service levels and enhance customer and supplier relationships.

 
 
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Inventory Optimization Addresses the Challenges of Sourcing Overseas

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