Today’s market conditions and the complex economic relationships in the world impose the need for companies to manage supplies and equipment inventory more effectively. Inventory optimization is in fact recognized as a critical factor for success by all forward-thinking companies. Avoiding a situation where the capital is tied up in inventory and at the same time having enough inventory on hand to meet customer’s demands represent two imperatives in extremely competitive business climate.

Maximizing the efficiency of scarce capital while making timely deliveries sounds like a combination each company would embrace. In order to accomplish this operations personnel and their management have to be able to successfully manage this constantly shifting balance point.

Inventory is probably one of the most important assets of many distribution companies. Sometimes much more capital is tied up in inventory than in equipment and properties. The Pareto principle states that 80% of the overall consumption value is based on only 20% of total items. Evidently, demand is not evenly distributed between items: best sellers vastly outperform the rest.

It’s difficult to turn inventory back into money in order to cover salaries and other expenses. This clearly indicates that investing in right products is essential for both manufactures and distributors. IAM solution allows them to closely monitor the performance of their investment in inventory. With IAM professionals will be able to enjoy full visibility into all relevant inventory trends and perform optimization of inventory levels and purchasing process.