Increase turnover rate

The advantages of increased turnover rates

By increasing the turnover rate, manufacturing companies can generate important added value:

1. Inventory costs decrease, liquidity increases: inventories are reduced, capital commitment decreases.
2. Faster adaptation to market changes: A high turnover rate minimizes the risk of overstocking or dead stock. Disposal costs can also be avoided.
3. Promoting innovation: companies can react more agilely to new technologies and trends.
4. Increased competitiveness: High turnover rates ensure more efficient operational processes and faster market launches.

Overall, a high turnover rate strengthens the profitability, flexibility and innovative capacity of your company.

High turnover rate alone is not enough

As a rule, it is not enough to focus solely on the inventory turnover rate in order to achieve a sustainable increase in efficiency. Although inventory turnover is a useful indicator, a low turnover rate is more of a symptom of what can and should be optimized in other areas. Improving the inventory turnover rate alone may reduce stock levels in the short term, but often leads to higher procurement costs and a declining service level.

Precise stock forecasts are essential

Forecasting accuracy within production has a significant impact on inventory turnover rates. Accurate inventory forecasts not only minimize overstocks and bottlenecks; they also enable companies to determine the demand for raw materials, intermediate products and finished goods more precisely. This ultimately leads to optimized warehouse planning and efficient use of warehouse resources. Modern forecasting techniques and data analysis can be good tools for this.

Optimize stock turnover with these tips

There are a number of levers in the production process that have an impact on the turnover rate. These approaches in particular help to increase them:

• Efficient warehouse and inventory management: Optimized warehouse processes shorten throughput times and minimize stock levels, e.g. if your supply in production and logistics matches customer demand and the desired delivery times.
• Technological integration and automation: Modern technologies and systems ensure a faster and more efficient production process with real-time transparency and greater adaptability to varying market conditions.
• Supply chain optimization: Real-time information optimizes the supply chain, e.g. by improving your ability to adapt to market and demand fluctuations or supply bottlenecks.
• Continuous process improvement: Lean principles and regular reviews help to continuously optimize your logistics and production processes.

Inventory management

Efficient inventory management contributes significantly to a high inventory turnover rate. With innovative inventory management strategies and a sound understanding of your needs, we help you to optimize your inventory processes through a smooth supply chain and reduce your storage costs at the same time.

How we approach the process:

• We develop an inventory strategy in line with your business objectives.
• We use an as-is analysis to analyze inventory, master data and relevant processes and identify current weaknesses and quick wins.
• Inventory planning shows the optimization potential and the influence of each item.
• We show possibilities from risk management and ongoing risk analysis in order to be able to react precisely to short-term changes or disruptions in the supply chain.
• We analyze optimization potential through inventory controlling and validate the existing strategy.
• We take care of project management and support you operationally during implementation, for example by training your staff.

Process Mining

We use process mining to create real-time transparency in your production processes. In this way, we uncover hidden potential to increase your turnover rate and make your entire production process more efficient, even under varying market conditions.

Our approach is as follows:

• We identify possible use cases, evaluate and prioritize them.
• We check all process data in a data check and use it to build a data model that fits your processes exactly.
• We analyze and verify processes, enriching the model and integrating additional data.
• We eliminate inefficiencies and bottlenecks and measure the effectiveness of the measures.
• We identify potential for process automation and exploit this using process mining, RPA and AI applications.
• The process is monitored and controlled; notifications and warnings enable a rapid response if problems occur.

Supply Chain Control Tower

A supply chain control tower provides full transparency in real time, even in complex supply chains. This allows you to monitor, control and optimize your entire supply chain in order to identify risks at an early stage. The control tower puts you in a position to make well-founded decisions.

We advise you from the very beginning right through to implementation:

• A readiness assessment shows the potential of a supply chain control tower for your company and describes which data optimization measures would be useful beforehand.
• We make a technology selection to find the right software for your requirements.
• A proof of value demonstrates and verifies the concrete added value of the Control Tower for your company.
• The Control Tower is implemented in your system landscape, during which final adjustments are made to your requirements and employees are trained.
• Analysis and reporting give you full transparency of your supply chain processes and enable you to make data-based decisions in any situation.