The Impact of Inventory

​Inventory Improvements Correlate to Better Financial Performance

It's no secret that improving inventory turns, increasing throughput, improving utlization, and improving cycle times are just a few areas where small improvements can yield huge financial returns. 

For example, industry analysts reports show that:

  • The average inventory level is 60 days across all manufacturing industries
  • For the typical company, 60 days of inventory represents 7% of revenue  (eg. $1B company that represents $70M in inventory)
  • One day in reduction in inventory = roughly $1M in working capital

Fullscope Helps Its Customers Reduce Inventory

We've helped our customers attain many operational improvements, including Eureka Lighting, who reduced inventory costs by $2 million (Canadian), including a on-time elimination of $800,000 in obsolete inventory.

Contact us today to Learn How We can Help you Identify and Acheive Results.

For more information on additional metrics, check out this LNS Research article, "28 Manufacturing Metrics that Actually Matter."

 

*Source:  AMR/Gartner Research: 

 

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