The world of Grocery, Food and Mass Market Retailing is consolidating – the channel power of the largest plays in this industry growing daily.
With that, comes demands for lower product costs, higher listing fees and more co-op funding – all resulting in margin pressure.
In response the Food manufacturing industry has undertaken its own mergers in an effort to exploit operating efficiencies and maintain a competitive position in the market place.
Each merger brings with it the promise of “synergies” that magic that makes 1+1 = 3 – however, in the vast majority of instances this promise fails to materialize.
Maintenance Inventory Optimization is one area where they can – similar companies, in the same industry, making similar products are likely to have similar asset.
The need to maintain ongoing operations is paramount – particularly during merger activities where distraction is rife.
However, rapidly identifying where inventory pooling opportunities may exist between plant networks and putting in place the mechanics to share inventory can be a very effective way to start posting cash flow savings in the first 90 days.
At Xtivity we can help you identify the potential of this and other opportunities – all while ensuring part availability in support of continued operations.
Sound interesting? – Contact us today for an overview of our inventory management products and services.