When demand is booming and production volumes are at a high, excess product is being built, moved and stored to make sure customer demands will be met. When the economy slows and the orders suddenly get turned off, the reaction time of complex supply chains – due to all the source points and manufacturing points spread out across the globe creating long lead times – has a very damaging effect to the bottom line.
Material is already under process at factories, in transit on ships and trucks, in storage in warehouses and distribution centers throughout the pipeline. So when demand abruptly slows, all players throughout the supply chain are left with excess inventory that gluts the pipeline. This is usually the point when managers start worrying about what to do with all the excess. A day late and a lot of dollars short.
All of these root causes drive variability into the system. It is this variability that managers are planning against by carrying more than necessary inventory in the pipeline. Leading organizations have managed to establish means of reducing this variability across the supply chain through superior inventory management.
CGN partners with organizations of all types to transform the way they manage their transportation function. We help organizations sustainably reduce inventory through properly managing capacity and demand, while becoming more agile and adaptive to changing customer needs and unforeseen challenges. This results in lower costs, higher profitability, and better customer satisfaction due to the ability to give the customer what they want, when they want it with the utmost efficiency.
Your organization is unique, so should be your solution. We apply our vast subject-matter and inventory expertise to uncover the true issues behind your inventory problem, apply the right tools and methodologies to effectively solve the issues, and work with management and employees to transfer our knowledge to you in order to sustain the gains and create a culture of continuous improvement.
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