Symptoms are confused with causes
On average, the manufacturing industry in Germany can reduce inventories by around 20% within 6 months. This is a key finding of the new 2014 surplus stock study by Abels & Kemmner. This means that the overstock situation in companies has not improved significantly since the 2009 overstock study. The study also shows that companies are still struggling too much with the symptoms of overstocking, but are not tackling the real causes in order to reduce their stocks in the long term.
There are many “good” reasons for high inventories: Increased procurement in Asia and thus longer replenishment times, increased variant diversity combined with irregular market requirements, unreliable suppliers. However, these are often just symptoms that all companies have to contend with. While a small group of companies manage to keep their inventories low without jeopardizing their ability to deliver, the majority of companies are still not able to do so sustainably. You can find all the facts and tips for sustainable inventory optimization by downloading the Germany 2014 Overstock Study here.
