Inventory Management and Optimization

SAPinsider will publish a benchmark report on Inventory Management and Optimization in November 2022. There could not have been a better time to conduct research focused exclusively on inventory management and optimization. Why so? Well, first of all, the first aspect, which is not surprising to any of us is the immense focus on supply chain and inventory management that we have seen in the last couple of years. As it applies to certain critical industries, inventory management is even being discussed in the White House. So that kind of provides a good opportunity to explore this topic, to get more insights on this topic for executives, so that they can leverage that to harness the energy that has built around transforming inventory management, put it to better use through getting funding, through getting business cases approved and, using that energy positive momentum to transform their inventory management process. But the more critical aspect of research, the research to research as it happens, is generated or created using inputs from an end-user community, right through a survey. And this is what we do here at SAP insider. And for this research, like all of our other research, we reach out to the end users of technology, the inventory planners, and the supply chain planners, who work within the processes and interact with tools and technologies about inventory management and optimization. And it is critical to get their perspectives in a certain structured way (that's the structure we create using our survey) because the problem, the challenges of inventory management and optimization, in my perspective, are not plainly or purely technology-based. Even if we keep the black Swan events like COVID aside, inventory management has always been a challenge, but the pandemic has exposed what used to be just the tip of the iceberg. But the key here is to understand that the framework that I keep on going back to the three elements of it, people, processes, and technology, all contribute to the I management challenges. But the core of the problem is not technology. And to support my point, let me use the example of a key buzzword you have heard many times- the bullwhip effect. You will also see the bullwhip effect being shared on the internet. I will assume you're familiar with the bullwhip effect. So take a step back to think about the drivers of the bullwhip effect. Is it because of a lack of technology? The visibility you need to manage or mitigate the bullwhip effect has been in place for years. So it's not the technology that has led to a bullwhip effect. It's the lack of trust in the process. So it's a people and process aspect. We have tried to define processes around it like CPFR decades ago. It hasn't worked as effectively as it should. The reason being the people aspect. So maybe there is a need to redefine the process and retrain and reskill the people aspect. And then these two aspects need to be supported by technology. So watch out for this report if you are an executive because the insights from reports like these, it is insights from reports like these that can help you build momentum within your organization. Use all the current attention on inventory management and digital transformation of the supply chain. Overall, use all that momentum, pair that with the key insights that emerge from this report, and transform the inventory management process tools and technologies within your organization; by building a strong business case to participate in this research, you can use the link of the survey here and provide your insights. Watch the analyst insight video of this article here: https://vimeo.com/749018977