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Newton.Vaureal Consulting - Logistics and Supply Chain Management - Paris
+33 1 40 17 04 03


Stock Monitoring

Inventory strategies to improve Working Capital Requirements (WCR) and to achieve customer-service objectives

Inventory control is a major pillar of logistics efficiency and profitability. We advocate a three-step approach: to set project objectives, to define the means and to manage them.

1 - To develop a strategic vision of stock and to define the level of stock necessary for development.

In order to develop an essential framework, a study of market environment and product positioning is carried out. More specifically, we define together: your products’ differentiating factors, the level of service your customers expect (by product group) and your organization’s development strategy.

This framework allows us to define logistics solutions and target-service levels. In addition, we carry out a full cost analysis of sales, purchasing, production and storage, differentiated by product weakness.

2 - To analyse stock and compare it to the target so as to highlight possible malfunctions and create a plan of action to remedy them

For this purpose, we carry out a meticulous analysis of stocks (dead, dormant and live stock, then ABC, inventory cover and seasonal effects). Based on pre-validated service levels, we define stock-management policies including the size of security stocks. Finally, by comparing reality to target objectives, we are able to analyze the causes of any discrepancies and to draw up a plan of action to achieve the target.

3 - Implement an operational guide

In this last stage the objective is threefold: to organize the tasks of those involved, to enable you to acquire an anticipatory capability and to guarantee the control of stock levels.

Our Supply Chain and Logistics consultants offer you the means to:

  • Monitor the evolution of stock in relation to set objectives (in terms of value and coverage).
  • Measure deviations.
  • Implement corrective actions.
  • Take into account actual stock situations (value and age) so as to adapt financing needs and make provision for obsolete stock.