Recession and Natural Disasters Explain Flat Inventory Levels

Cupertino, CA, February 05, 2015 --(PR.com)-- Forecast Errors newsletter reported that Dan Gilmore, Editor-in-Chief of Supply Chain Digest, discussed the inventory-to-sales ratio, as tracked by the US government. It measures on-hand inventory levels against one month's worth of sales. Other than the wild gyration in 2008-09 associated with the great recession, inventory levels have been flat for a decade, even gently rising in the past few years. There is a general bias in the last few years towards top line revenue growth, related SKU proliferation and new product introductions, and longer offshore supply chains. But more provocatively, many companies may have simply hit an inventory wall within the context of their current supply chain designs. The imperative to map and model a company's supply chain took on extra urgency after the events of 2012 - earthquake and tsunami in Japan and massive flooding in Thailand, which caused huge supply chain disruptions.

Forecast Errors, a weekly e-newsletter, sponsored by Ultriva, Inc. shares methods, modes, and tools used to inform Manufacturers’ of forecast errors that they face on the manufacturing floor, and with a variety of supply chain industries. The newsletter explores forecast errors as the difference between the actual and predicted value. Forecast Errors argues that what separates best-in-class companies from those that struggle with accuracy is how they root out (and learn from) forecasting errors.

A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

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About Ultriva
Ultriva’s (www.ultriva.com) cloud-based platform leverages seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment solution. Ultriva, based in Cupertino, CA, implements a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. Ultriva was named one of the Great Supply Chain Projects of 2014 by Supply & Demand Chain Executive magazine and recently named one of 50 Best Supply Chain Blogs of 2014 by SupplyChainOpz. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as Magellan Aerospace, CareFusion, Emerson, Ingersoll Rand, McKesson, Triumph Group, Regal Beloit, Thermo Fisher, and more. Follow Ultriva on Twitter at @Ultriva.

Ultriva, Inc.
www.ultriva.com
Cynthia Leonard
Marketing Executive
cynthiaL@ultriva.com
408.961.2495