Skip to content
Simplify your inventory management, maximizing your company's resources

Inventory Management

Inventory management represents a fundamental pillar of business profitability. Poor management can lead to high internal costs due to obsolescence, overstocking, or shortages of key products. Furthermore, complex and non-optimized processes hinder internal collaboration, leading to delays and mistakes being made in daily operations. This lack of clarity in the processes can also affect collaboration between teams and decrease accountability, resulting in inconsistent performance.

Customer dissatisfaction is another direct consequence of sloppy inventory management. Lack of product availability or delivery delays directly impact the customer experience, which can result in lower customer retention and loyalty, thus affecting the company's future revenues. In contrast, well-prioritized inventory management reduces operating costs by minimizing unnecessary storage and transportation. It also optimizes safety stock to avoid lost sales, thus improving customer service levels and generating a positive impact on sales and the company’s overall profitability.

At London Consulting Group we guarantee
the ideal inventory management and
optimization
for your company

To achieve operational excellence, we focus on simplifying complex processes, reducing operational burdens, and optimizing supply chain management. We go beyond conventional methods by enabling manufacturers to anticipate market fluctuations, thus avoiding unfulfilled orders and ensuring greater production efficiency. Furthermore, we optimize inventory management from start to finish, prioritizing customer satisfaction and ensuring greater availability of products when and where they are needed.

SOLUTIONS

How we achieve mastery in inventory management for a company

Our main objective is to efficiently optimize management processes, addressing the movement and storage of goods, information flow, and resources. We are committed to achieving efficient management of all types of inventory in your company. We work hand in hand with your managers to thoroughly analyze your current inventory management processes, allowing us to define an optimal inventory management strategy for your organization. We focus on your efficiency.

METHODOLOGY

Our process for achieving
high-performance inventory management

Deep-dive Analysis

We thoroughly analyze the procurement, distribution, and production departments in order to identify improvement opportunities in each process. Our approach encompasses the management of raw materials, inputs, work-in-progress, and finished goods. This detailed assessment allows us to strategically align each process in order to meet the demands of your company's procurement plan and demand plan. We ensure that each department optimally contributes to the fulfillment of your business objectives.

How we do it

Evaluating the involved departments (procurement, distribution, and production): Comprehensive analysis of each department to identify their performance and efficiency.

Defining the objectives: Clearly establish the specific goals and objectives to optimize processes and results.

Defining obstacles and opportunities within the operational processes: Identifying challenges and possibilities for improvement in the procurement, distribution, and production processes.

Analyzing customer satisfaction in relation to lost sales: Detailed study of the causes of lost sales and their impact on customer satisfaction.

Developing the inventory management layout: Strategic design of the physical layout and inventory organization for efficient management.

Establishing inventory incomings and outgoings: Clearly define how inventory incomings and outgoings need to be recorded and managed.

Coordination between existing inventory and system information: Integrating and coordinating the existing inventory with the information on the systems for a unified and accurate overview.

Project

We prepare the company for the inventory management optimization processes.

Demand planning

Developing sales forecasts: Creating sales projections and estimates based on market analysis, historical trends, and current data.

Designing and implementing an S&OP (Sales and Operations Planning) model: Creating a process that aligns the company's operations with market demand and the company’s sales strategy.

Designing the planning cycle model: Establishing a structured process for planning, reviewing, and adjusting strategies and operations in a continuous cycle.

Defining the lost sales model: Establishing a framework that identifies, analyzes, and addresses the causes and consequences of lost sales, enabling your company to minimize these losses.

Supply planning

Designing a sourcing model: Creating a framework that determines how the resources that are needed for the company’s ongoing operations are acquired and managed.

Designing the procurement plan model: Establishing a structured process that details how the goods and services that are needed for the company's operation are acquired, taking into account deadlines, volumes, and suppliers.

Implementing a mobile statistical replenishment model: Implementing a system that uses statistical methods to predict and adjust inventory levels dynamically according to demand and other variable factors.

Receiving plan

Planning the warehouse operations: Organizing and designing warehouse operational activities to ensure efficient inventory management and product flow.

Standardizing the receiving model and quality policies: Establishing uniform processes and criteria for receiving products, together with policies that guarantee high-quality standards.

Defining the complaints management process: Creating a system that efficiently handles customer complaints and grievances, ensuring a timely and effective response.

Establishing operational synchronicity: Aligning the operational activities and processes to ensure coordinated and efficient execution throughout the supply chain.

Coordinating the unloading process: Organizing and managing the product unloading process, optimizing time and resources in order to have an agile and efficient receiving process.

Verifying units of measurement and product dimensions: Validating and controlling product measurements and dimensions to ensure their accuracy and conformity with the established standards.

Optimizing the product or store planogram

Reviewing the product categories: Evaluating the layout and spatial distribution of products and sales areas to optimize customer experience and operational efficiency.

Product volumetric analysis: Detailed study of product dimensions and volumes to determine their optimal storage space and logistics.

Verifying storage infrastructure: Evaluating the existing storage structure and capacity to ensure that it meets the products’ storage needs.

Variation and peak demand analysis: Analyzing demand fluctuations and peaks to anticipate variations and plan the operating capacity required.

Defining the concept of cost by proportion: Establishing a calculation method that determines the cost based on the proportion or relationship between different elements. This provides more accurate cost management by basing it on the reality of the business.

Inventory and Quality Control

Optimizing the product incomings and outgoings: Improving the procedures related to product incomings and outgoings, seeking to increase efficiency and reduce time spent on these processes.

Strengthening the FIFO (First In, First Out) and FEFO (First Expired, First Out) procedures: Reinforcing the policies and practices that ensure adequate inventory turnover, following the principle that the oldest products (or those close to expiration) are the first to be used or shipped.

Auditing the locations: Verifying and controlling the location of the products in the warehouse to ensure that they are registered accurately and correctly arranged in the storage space.

Personnel’s productivity

Improving the receiving, handling, dispatch, and delivery processes: Optimizing operations, from receiving the products to their handling, dispatching, and final delivery, seeking to increase efficiency and reduce time at each stage.

Designing the capacity plan: Creating a detailed plan that contemplates the required operational capacity based on demand and available resources, ensuring optimal capacity management.

Implementing an activity assignment model: Establishing a model that effectively assigns tasks and responsibilities, ensuring an equitable and efficient distribution of activities among the available resources.

Resource scheduling according to defined processes: Strategic planning of resources (human, material, etc.) according to the established processes, ensuring their availability and efficient use at each stage of the operations.

5 S´s

Implementing the 5S methodology: Implementing the 5S methodology (Sort, Set in Order, Shine, Standardize, and Sustain) to improve organization, cleanliness, and efficiency in the work environment.

Training on 5S work systems: Specialized training on the 5S methodology, teaching the principles and practices that need to be implemented and maintained in order to have an organized, clean, and efficient work environment.

Active supervision

Designing active supervision activities: Developing specific activities and proactive supervision processes that guarantee constant and effective operations monitoring, ensuring quality and efficiency in real-time.

Defining the key indicators pyramid: Establishing a hierarchical structure of key performance indicators (KPIs) to evaluate and measure different levels of performance in the company, from operational metrics to high-level strategic goals.

BENEFITS

Increase profitability with
strategic inventory management

Discover the potential of optimizing your inventory management processes. Imagine significantly reducing your storage costs and avoiding out-of-stock losses. Our inventory management strategy ensures accurate and efficient inventory management, determining the optimal amount of stock needed to meet market demand. Avoid losses and ensure intelligent management that maximizes your profitability.

What makes us different

• Working closely with the managers and relevant departments to achieve operational excellence.

• Training the personnel on how to make evidence-based decisions.

• Establishing an organizational culture that prioritizes operational synchronization in order to improve efficiency.

• Optimizing processes to eliminate unnecessary expenses.

• Significantly reduce the time spent on inventory management, increasing efficiency in this key business aspect.

TRENDS

Inventory management in the digital age

Inventory management is essential to ensure product availability and avoid shipping delays. Addressing overstock or out-of-stock issues can reduce inventory costs by 10%. Worryingly, 43% of small businesses do not monitor their inventory and 21% say they are out of stock. Approximately 73% of warehouses in the Americas have plans to implement mobile inventory management solutions. Furthermore, according to the analysis, 79% of companies with high-performing supply chains can achieve revenue growth surpassing the average performance within their respective industries. The data reveals that 34% of companies face problems related to product shortages and delayed shipments.

20 Inventory Management Statistics You Should Know in 2023, Myos
GS1 US Survey Shows Manufacturers and Retailers Embrace RFID to Enhance Inventory Visibility, PR News Wire

Start Increasing your
sales
And reducing costs With
strategic inventory Management