Strategic Cost and Inventory Management gives you the tools to profitably serve your customers.

As companies give customers more choices through greater product selection, cost and inventory become much harder to manage.

Our clients need answers.

• Which products are profitable?
• What is driving product cost?
• To achieve the target service level, how much inventory should be held?
• What is the right mix of inventory?
• What are the underlying reasons why there is too much inventory?

The answers are harder to get if you have:

• high overhead rates
• low inventory turns
• resources being shared by many processes and product lines

Strategic Cost and Inventory Management is our practical approach for quickly understanding the drivers of cost and inventory. Then we assemble the toolkit to cut out unnecessary cost and resize and rebalance inventory. All along the way, we balance the long-term objectives of the customers, shareholders and employees.

Our work in this area is often quickly self-funding through its direct impact on profitability, cash flow and cost avoidance. To accomplish our objectives, we bring together several best practice areas of expertise:

Strategic Materials Management
Attacking the drivers of total material cost.

Strategic Inventory Management
After determining the appropriate inventory, driving the size and mix of inventory to its strategic level while improving customer service.

Constraint-based Management
Capturing opportunity (reducing opportunity costs) by eliminating business constraints.

Activity-based Management
Rationalizing activities, processes, products and customers based upon the value they create versus the costs they incur.