The process of managing inventories involves delivering the right inventory at the right time in the right quantity to customers while still keeping the cost of maintaining the inventory to a minimum. Inventories may include raw materials, purchased components and subassemblies used for work-in-process, and finished goods. While inventory needs may vary from industry to industry, the fundamental inventory management strategies apply to all companies. Leading companies automate all inventory control functions and maintain strong relationships with their vendors in order to keep inventory flowing smoothly.
This benchmarking tool focuses on the key performance indicators for managing inventories effectively.