A project evaluation carried out by the Herzogenrath (near Aachen) management consultancy Abels & Kemmner reveals how much unused potential there still is in the warehouse.<\/p>\n
Stocks are dead capital and cost money. Series and variant manufacturers as well as wholesalers invest an additional 19% to 30% of their average inventory value annually in warehousing costs (Figure 1). As a result, the profit can be increased by up to 30% of the reduced inventory value when inventories fall and can release up to 100% of cash and cash equivalents. The best starting points for reducing stock levels are strategic stock analyses using logistical simulation and improved sales forecasts based on these, as well as the correct setting of planning and scheduling parameters in the ERP or merchandise management systems. This is confirmed by Abels & Kemmner’s rolling project evaluation.<\/p>\n