13 best practice criteria for sustainable and holistic portfolio management

Professor Kemmner publishes guidelines for dispatchers

Herzogenrath/Aachen, 27.05.2015 – Professor Dr. Andreas Kemmner has summarized and comprehensively explained 13 best practice criteria for sustainable and holistic inventory management in the new 20-page guide for dispatchers. The aim is to provide entrepreneurs and decision-makers in inventory management with clear and comprehensible guidelines that they can use to check whether their inventory policy is set up correctly. This is important, as inventories not only tie up a lot of capital in the company, but also produce extremely expensive imputed costs of 19 to 30 percent. The guide can be ordered free of charge by sending an e-mail to 13@ak-online.de.

The 13 basic principles set out in the guide, from which Kemmner derives the 13 best practice rules, are:

  1. Overstocking is convenient and has many secret sympathizers.
  2. Every overstock has a story…and sometimes it’s not made up.
  3. Only those who know which way the wind of demand is blowing can set their production sails accordingly.
  4. When it comes to material planning, reason is often overwhelmed and the gut is a bad advisor.
  5. Hectic steering and oversteering in the event of fluctuations in demand and supply causes the supply chain to vibrate.
  6. Decoupled decisions in internal and external distribution chains disrupt the flow of goods.
  7. A company’s logistics system works according to its own unmistakable rhythm.
  8. Items with large batches and long lead and delivery times are junk food for the value chain – cheap to have but hard to digest.
  9. If there is a shortage of everyday goods, and in the business-to-business sector this applies to practically all goods, demand is the first to be overstretched.
  10. When purchasing and sales meet, it is all too often about tactical maneuvering or the exploitation of power and not about constructive cooperation.
  11. Small cattle in the product portfolio usually make a lot of muck, but little turnover and even less profit.
  12. A large part of the inventory costs of a part is already determined during product development.
  13. Trust is the beginning of everything, including the end of inventory management.
Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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