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Article: Inventory optimization--a delicate balance.(Supply Chain Management)(Cover Story)
- Article from:
- Frontline Solutions
- Article date:
- April 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Advanstar Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Prevost Parts faced a classic supply chain dilemma. The 1,200-employee, after-market parts division of Prevost Car Inc. carried lots of inventory, but it still missed targeted customer service requirements.
"Throughout our network, we have a high inventory level, but we were not achieving the desired service levels," says Dave Gilbert, supply chain director with Prevost Parts, a North American parts distributor for motor coaches and transit buses based in Sainte-Claire, Quebec, Canada. "We were not hitting targets with our fast-moving 'A' items and had too much inventory on our 'C' items."
Gilbert's goals were clear: Reduce the capital tied up in ...