First Choice Supply Chain simple but effective and accurate methods to value inventory. Simpler inventory valuation methods are a lot less work. Simpler valuation methods do not require complex computer systems to track inventory. In addition, simpler inventory valuation enhances visual inventory management.
Some common inventory valuation methods:
Some common inventory valuation methods:
- Days out of Stock
- Material cost plus days of conversion cost
- Quantity of finished goods
- Prior inventory plus procurement minus usage
The use of these tools will reduce inventory, reduce safety stock levels and lower expenses.
Inventory management has become the crucial element of the supply chain – where the supply and demand actually are joined at the hip. Grasping and understanding that concept has a dramatic effect on operating costs thus cash flow and shareholder value.
Below is the basis of an agile supply chain. An agile supply chain is a chain of supply that is capable of responding to changing needs in a manner that expedites delivery of ordered goods to customers.
Today the primary traits many companies seek in their agile supply chain are the following:
Today the primary traits many companies seek in their agile supply chain are the following:
- Flexibility
- On Time Response
- Speed
- Accuracy
First Choice Supply Chain can re-design and re-size the company’s supply chain network to meet their new business strategy.
If you would like to optimize your supply chain, call on First Choice Supply Chain. Click Here to connect with us.
If you would like to optimize your supply chain, call on First Choice Supply Chain. Click Here to connect with us.