Logistics
Inventory management
Inventory management for optimized warehouse and WIP stocks
Do you juggle inventories on a daily basis and are you looking for an efficient solution for your warehouse stocks and WIP stocks? Are the challenges of inventory management, characterized by complex supply chains, fluctuating demand and the pressure to minimize costs and working capital, putting a strain on your company? With our tailor-made inventory management solutions, we not only optimize your inventory management in a targeted manner, but also create more transparency along the supply chain. Through innovative strategies and a deep understanding of your requirements, we sustainably improve your inventory processes, strengthen your ability to deliver and ensure maximum efficiency in your supply chain.
Portfolio strategy
The cornerstone of your effective inventory management
Many companies struggle with unclear goals in inventory management, which leads to inefficient warehousing processes on the one hand and rising costs on the other. Unclear inventory philosophies also make long-term planning and alignment of the supply chain strategy more difficult.
Rothbaum supports your company in defining clear inventory goals and developing a tailor-made strategy for your inventory management and optimization. We analyze your current situation and identify opportunities to optimize your inventory philosophy. Together we will develop strategies that will enable you to manage stock and WIP efficiently and increase your profitability.
Our service packages:
- Analyze your current business situation
- Revise inventory philosophy and supply chain policy (supply chain strategy)
- Weigh up the advantages and disadvantages of existing stock according to the developed stock philosophy
- Develop strategy e.g. single or multi-echelon (digital twin); hub and spoke system etc.
Your benefit:
- Greater transparency of inventories and processes
- Identification of weak points and optimization potential
- Strategic orientation of portfolio planning
- Reduction of storage and capital commitment costs
Philipp Carl
Logistics division management
Talk to us!
Get to know our solutions for inventory optimization. Contact us for a non-binding discussion.
As-is analysis
Uncover inconsistencies and potential for improvement in your company
If inventories are not effectively aligned with operational processes, inconsistencies, overstocks or bottlenecks occur, which affect profitability.
Our as-is analysis therefore examines your current inventories and operational processes in detail. Through a comprehensive assessment, we identify inconsistencies and potential for improvement. Based on these findings, we make clear recommendations for optimizing your inventories and support you in implementing a precise key performance indicator system for better control.
Our service packages:
- Analyze existing master data and its quality
- Evaluate relevant business processes
- Determine inventories and key figures
- Develop initial recommendations for action
Your benefit:
- Higher quality and reliability of your master data
- Early detection of process deviations
- Identification of optimization potential within the company processes
- Rapid implementation of initial recommendations for action
Inventory planning
Precise inventory planning for optimal cost savings and availability
Defining suitable inventory levels is crucial to ensure the desired item availability and also to minimize warehousing costs. However, many companies struggle to define the optimal inventory levels.
Our experts support you in precisely defining the optimum stock levels for your company. Through a thorough analysis of your requirements and processes, we define inventory levels that ensure a continuous supply while minimizing storage costs. In this way, we ensure optimal stock levels without compromising delivery capability. Consequently, we help companies to find the right balance between availability and capital commitment with targeted inventory optimization measures for supply chain management.
Our service packages:
- Analyze and classify stocks
- Identify and minimize process drivers (high costs) and liquidity killers (high capital commitment costs)
- Determine requirements and stock levels
- Optimize warehouse and procurement planning
- Selecting suitable software for inventory planning
Your benefit:
- Identification of optimization potential of the inventory by structuring the materials
- Overview of the impact of each item on inventory management
- Needs-based inventory planning based on your inventory philosophy
Risk management
Good risk management ensures a reliable supply chain.
Companies are exposed to risks in their product range and supplier portfolio that can jeopardize the stability of the supply chain. Unforeseeable events or inadequate risk assessments often lead to interruptions and financial losses.
Our risk management approach identifies potential risks in your product range and supplier portfolio. We carry out a thorough analysis, assess these risks and develop strategies to minimize them. With our structured approach to inventory optimization for supply chain management, we protect your supply chain from unexpected disruptions and also minimize negative effects on your company.
Our service packages:
- Analyzing suppliers and supply chains
- Identify risk-driving articles
- Develop measures for risk assessment and risk minimization
- Select suitable software for ongoing risk analysis
Your benefit:
- Transparency about risks in the supplier portfolio
- Early detection of potential faults
- Greater stability and security of supply
- Faster response to changes
Inventory controlling
Effective control for optimized warehousing and availability
The lack of effective inventory management often leads to insufficient control over stock levels, which in turn can lead to shortages or unnecessary overstocking. This is why companies need a better overview of their stock levels.
We help you to ensure long-term control of your stocks. By implementing effective control mechanisms and processes, we monitor and control stock levels precisely. This allows you to improve item availability, minimize the risks of over- or understocking and ensure efficient warehousing.
Our service packages:
- Select suitable software with an inventory controlling dashboard
- Define relevant inventory key figures
- Establish control mechanisms for inventory management
- Recognize stock trends and deviations at an early stage
- Continuously analyze and evaluate inventories
Your benefit:
- Ongoing analysis of optimization potential and validation of the existing strategy
- Transparency across all relevant inventory key figures
- Optimization of working capital and WIP inventory
- Sustainable improvement in portfolio performance
Implementation & project management
Smooth implementation of your inventory management strategies
The successful implementation of inventory management strategies requires both precise planning and effective tools. Many companies face the challenge of seamlessly implementing these strategies and introducing the appropriate tools.
Our team supports you with the introduction of your inventory management strategies and the implementation of suitable tools. We create detailed implementation plans and coordinate the process. We also offer support throughout the entire project cycle. In this way, we ensure that your inventory management initiatives are implemented successfully and achieve maximum efficiency.
Our service packages:
- Carry out stakeholder and expectation management
- Take over project management for portfolio optimization projects
- Monitor and maintain project schedule
- Support change management and organize staff training
- Managing implementation from preparation to regular operation
- Organize and coordinate all parties involved
Your benefit:
- Central contact person for all project levels
- Transparent overview of project progress
- Ensuring employee qualification
- Smooth and timely implementation
- Operational support across all project phases
What does inventory management do?
Inventory management is responsible for the efficient management of goods and materials in a company. It optimizes stock levels to ensure that the right amount of stock is available at the right time and also minimizes excess stock and bottlenecks to increase profitability and keep the supply chain running smoothly.
What types of stock are there?
- Finished goods inventory: Finished articles
- Semi-finished product stock: items that are on an intermediate production level
- WIP stock or work in progress: Raw materials, materials and products that are not currently recorded in the stock, but have already partially consumed labor and machine time on the key date of the stock entry
- Safety stocks: buffer to compensate for unexpectedly high demand or disruptive factors
- Pipeline stocks: Quantities already ordered but not yet physically available
- Available stock: usable for process planning (physically available or in the pipeline)
- Order trigger stock: Specifies the order time to cover the time until an order is received
- Cycle stocks: Product quantities that the inventory planner expects to consume.
What are inventory optimization techniques?
The techniques are diverse and can be selected differently depending on the application scenario. Some examples are
- Just-in-time (JIT) production with the aim of delivering materials or products exactly when they are needed.
- Material requirements planning (MRP) with the aim of calculating material requirements based on production plans and customer orders.
- ABC/XYZ analysis with the aim of categorizing the range of articles in order to carry out targeted control and focusing per category.
- Optimize safety stocks with the aim of maintaining low inventories despite fluctuations and uncertainties in the supply chain (due to fluctuations in demand and supply)
- Supplier management with the aim of achieving close cooperation and clear communication with suppliers and coordinating deliveries precisely
- Introduction of RFID technology with the aim of precisely tracking goods movements in real time and avoiding bottlenecks
- Cross-docking with the aim of reducing storage times and costs
- Kanban system with the aim of controlling material flows in control loops autonomously and in an inventory-optimized manner:
- Use of advanced planning and forecasting systems with the aim of making more accurate predictions
- Conduct regular inventory reviews and analysis with the aim of identifying trends, making adjustments and ensuring that the inventory strategy always meets current requirements.
