Service | Capital

Making the Most Effective Use of Inventory Data

The Service | Capital dimension of the River Rock Advisors 3D-Ops Model℠ analyzes how to best balance inventory working capital and service levels to meet operational strategy as well as prioritize initiatives to both address service levels and reduce overall inventory levels — all while driving efficiency and remaining resilient to disruptions.

We often find that companies use rules-of-thumb or category-based inventory planning processes. However, these one-size-fits-all approaches can create an mix problem with too much of the wrong inventory and not enough of the right inventory.

The goal is to get to item-level supply/demand attributes in order to move to item-specific inventory targets, significantly improving inventory productivity. Through this, companies can move from getting on the appropriate service-inventory curve, to defining the best balance to being in position to shift the curve to maximize business impact.

inventory productivity

River Rock Advisors typically conducts the following inventory productivity analytics to get to the root cause of issues that need to be addressed in the Service | Capital dimension:

  • Inventory Performance or Inventory Productivity Improvement
  • Product Segmentation
  • Options and Initiatives to Shift the Inventory Curve

Transform the Way You Look at Inventory

The 3D-Ops Model℠ framework encompasses multiple approaches that improve supply chain and operational processes to drive meaningful, measurable business results. If inventory productivity and analysis have been a consistent challenge for your business, our team is ready to help. Contact us today to learn how we can support your success.