Inventory Stratification

Challenges

  • Misaligned inventory investment
  • Critical stock outs
  • Excessive ‘C’ & ‘D’ inventory
  • SKU proliferation

Solutions

  • Multiple criteria stratification
    • Profitability
    • Logistics
    • Criticality
    • Custom criteria
  • Combination inventory stratification

Benefits

  • Right-size inventory investments
  • Manage item-level profitability
  • Maximize your ROI on inventory
  • Balance customer service
  • Reduce obsolescence

“Through knowledge learned from the inventory management program, attended by all our management and key salespersons, we have reduced our total inventory levels by over 20%”
-Brent A. Burns, Building Materials Distributor

Stratificaiton Model

“We collaborated with Texas A&M on an inventory stratification project which has resulted in a successful classification of our inventory based on item level profitability. We have already seen a significant reduction in capital employed and expect to benefit from further decreases.”
– Kevin C. Reid, Vice President, Strategic Procurement at Copper and Brass Sales, ThyssenKrupp Materials, N. A.

Startification Best Practices

Sample Inventory Analysis