Inventory System Management: Tips for Improving Control

Inventory system management ultimately determines how quickly, reliably, and transparently you can get your orders to customers. Put simply, missed deadlines means lost customers, so it’s crucial that businesses optimize their inventory management as much as possible.

Here are five inventory system management concepts to consider.

Implement Supply Chain Management

It’s impossible to discuss inventory management without touching on supply chains—especially in 2022. The linear supply chain has become obsolete, replaced by a complicated web of players that span time zones, cultures, and political systems.

Even in 2014, long before COVID-19, 80 per cent of organizations with superior supply chain capabilities enjoyed significantly above-average revenue growth. The pandemic has made this more evident.

Demand-driven material requirements planning (DDMRP) is the industry leading operational supply planning and scheduling methodology.

Categorize Your Inventory

A key feature of DDMRP is that it improves the supply chain’s overall flow by strategically positioning and sizing decoupling points.

Put simply, the decoupling point is the position in the supply chain where the product flow changes from push to pull; it is a buffer between upstream and downstream players.

Categorizing these strategic positions will vary depending on different industry needs.

Determine Your Minimum Stock Levels

Effectively managing stock levels is critical for capital and resource management. Too little inventory and you will miss sales—too much means degradation and loss of valuable space. The challenge is finding that Goldilocks middle-ground.

DDMRP helps identify the necessary buffer stock decoupling points need to maintain flow.

Calculating buffer levels will determine its ability to function as intended. In the past, these buffer levels had to be forecasted ahead of time, making it vulnerable to unexpected shocks. The advantage of DDMRP is that these calculations can be adjusted dynamically based on operating parameters, market changes, or future events.

Optimize Your Inventory Replenishment

The planning and calculation that goes into establishing decoupling points and buffer levels culminates in greater supply chain visibility and transparency. Because DDMRP alerts planners of deviation from optimal buffer levels, supply chain synchronization, or lead times, partners can better collaborate on inventory replenishment.

Use Integrated Inventory Control Software

Integrating DDMRP software with your ERP and back-office systems will ensure optimal visibility and financial integrity. We provide award-winning, out-of-the-box, fully integrated DDMRP solutions with Microsoft Dynamics and SYSPRO.

To find out how an integrated supply chain management solution with DDRM can improve fill rates, avoid outages, and reduce stock levels overall (and the cash required to maintain them), contact us at