Supply Value and Freudenberg worked together to explore how to better serve Freudenberg’s customers by optimizing inventory levels and batch sizes. This ultimately leads to optimal service levels for different product categories.
However, inventory levels cannot be considered an isolated aspect. It is important to consider other aspects of the end-to-end supply chain process as well. To improve customer service and operational costs, improving inventory levels is not always the optimization needed. Indeed, if not inventory but some other aspect of the supply chain is the main bottleneck of work processes, improving inventory levels will not improve overall performance. Therefore, Supply Value helps its clients optimize the supply chain by taking into account the organizational strategy and translating it into an integrated supply chain strategy.
In this way, the supply chain is analyzed integrally, a process that can be supported by a method called Integrated Business Planning (IBP). In this whitepaper, the second of the IBP series, we take a closer look at the different aspects of IBP and how Supply Value Freudenberg advised on optimizing inventory levels, taking IBP processes into account. Applying IBP allows you to always focus on improving the bottleneck within your supply chain in order to increase customer satisfaction by optimizing service levels.
This whitepaper first explains the concept of IBP, followed by a more detailed explanation of each component. Furthermore, the inventory level project with Freudenberg is further explained. You can download the whitepaper below.
