by Bain's Global Inventory Management practice.
As most executives know, getting the right levels of
inventory is vital since it not only controls costs but
also serves as a barometer of a company's overall
health. We've found that the best supply organizations
are able to improve inventory levels by between 20
percent and 50 percent by employing sophisticated
analytical tools, resulting in long-term savings.
We've found that decision makers often rely on
external benchmarks that seldom deliver expected
insights. And they make operating assumptions that send
them down the wrong path.
We typically ask clients 10 questions that take the
pulse of a company's inventory health. They are designed
to assess the effectiveness of inventory reduction
processes as well as the sophistication and breadth of