Companies have realized that effective management of inventories is not east. the problems and challenges faced must be holistically managed to bring down inventory levels while at the same time maintaining or even improving customer service levels. Some of the obstacles faced by corporations in effective inventory management are outlined here below:
- Increased global scope and reach that must be managed
- Increasing virtualization and resulting loss of visibility and control
- Challenges resulting from multi-channel go-to-market strategies
- Shrinking product life-cycles not only in well-recognized areas such as high tech and electronics but in virtually every manufacturing sector
- Significant network changes resulting from mergers, acquisition and divestitures.