---
title: Optimizing Your Inventory and Supply Chain
description: How to optimize inventory when supply chain forecasts are wrong.
---

[RKL eSolutions | Technology Insights, Tips and Trends ](https://www.rklesolutions.com/blog)

# [Optimizing Your Inventory and Supply Chain](https://www.rklesolutions.com/blog/optimizing-your-inventory-supply-chain)

 Written by [RKL Team](https://www.rklesolutions.com/blog/author/rkl-team) | Apr 20, 2017 8:54:33 AM

Recently I read an article published by a smart guy. I know he must be because he holds a Master of Science *and* a Bachelor of Arts degree. He is also an "international master trainer and award-winning author" writing on [supply chain](https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management) and other management topics. [He shall go unnamed in this article, however, for reasons that may become apparent below.]

Therefore, you can imagine my shock when I read that, in his opinion, what it takes to optimize inventory, at a minimum, are: "fixed, known, certain, [and] reliable lead times; and accurate demand forecasting."

This, I believe, will mean that a very small number of businesses will ever optimize their inventories.

While there are a few industries and locales that might fit the bill for the creation of "fixed, known, certain [and] reliable supply lead times," there are very, very few that can lay claim to "accurate demand forecasting."

If there is one thing that supply chain executives and managers can agree upon, it is the fact that forecasts are *always wrong*. The only variables are *by how much they are wrong* and *in which direction*.

## Do Not Wait

If you are waiting for the next round of *new* and *improved* demand forecasting solutions to bring you what you need to finally "optimize your inventory," you are going to be sadly disappointed.

Brand and product proliferation, new ways of marketing and shipping to the customer both near and far, ever-growing international competition, and the [Internet-empowered consumer](http://www.forbes.com/sites/stevenrosenbaum/2015/07/16/the-new-world-of-the-empowered-consumer/) are changes that are increasing market volatility and unpredictability faster than new forecasting algorithms can bring improvement. There is no way to catch up.

## Don't Be One of Those

If your approach to supply chain and inventory management is not *dynamic*, I will guaranty you that your inventory is *not optimized*.

If you are like many of our clients when we first engage with them and your [lead-times](https://www.rklesolutions.com/blog/lead-time-analytics-demand-driven-supply-chain/), [safety stock](https://www.rklesolutions.com/blog/determine-stock-quantities/), minimums, maximums and ROPs (reorder points) were set six years ago by some guy who "doesn't work here anymore;" or even if they were set three months ago, or last month, or last week; I will *still guaranty* that your inventory is *not optimized*.

In most businesses today, if your system is not *daily* recalculating values that directly drive the inventory you have on-hand and in your supply chain, it is virtually impossible for your inventory to be optimized.

Subtle changes in the market, as measured by small shifts in ADU (average daily usage), should drive *dynamic* and incremental shifts in *reorder points*, *min* and *max **stock levels*, *replenishment cycles* and more. And, if you manage more than about 500 SKU-locations, you simply will not be able to do this effectively in Excel workbooks—no matter how sophisticated your macros are.

We help our clients find, select, plan and implement supply chain management tools that provide full-time *dynamic management* of your inventory and supply chain flows.

### **Have Questions or Need Help?**

Click below to get in touch with us here at RKL eSolutions if you have questions about new features or need help with optimizing your inventory and suplly chain.  
[Ask a Question](https://www.rklesolutions.com/contact-us/)

[View full post](https://www.rklesolutions.com/blog/optimizing-your-inventory-supply-chain)

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