Almost everybody realizes that inventory software alone does not provide a solution to problems.
Yet many companies, when faced with an inventory issue, see the need for a new inventory software solution as being a key requisite.
Data availability and visibility is a key requirement of inventory reduction but software is only a tool and, like all tools, it needs to be used properly.
Ongoing inventory reduction is achieved by a combination of culture, knowledge and data availability.
The problem is, if culture and approach to inventory management drives the change, then conceding that these issues need to be addressed is the equivalent to admitting failure on the part of management.
Psychologically this is difficult and can be both a challenge and humbling experience.
As a result a ‘new’ inventory software tool is seen as the way to effect change as this provides the reason for new outcomes to be achieved.
There is any number of examples where the same inventory software exists in different parts of the same company and yet vasty different results are achieved.
Clearly the issue is not the availability of the software but rather the culture and measures within which it is applied.
New inventory software solutions can be used to provide the focus to take a fresh look at inventory reduction opportunities, however, it is the implementation of new processes and culture and the ongoing review of inventory that drives sustainable gains.
By understanding the dynamics of inventory and providing appropriate measuring and reporting systems a company can ensure an ongoing focus on inventory reduction. This focus will last long after the inventory software implementation is forgotten.
These myths are explained in the ebook 5 Myths of Inventory Reduction – available as part of the Practitioner Playbook.
Posted by: Phillip Slater