Every week, SAP’s Performance Benchmarking group publishes a short analysis of a hot topic and high-impact strategies. This helps with finding opportunities for improvement within specific industries and companies. The week of February 4 discussed the automotive industry and its inventory management.
Some within the automotive industry have adopted holding “lean” inventory instead of the standard of keeping a large inventory. The Performance Benchmarking group asked those surveyed how well they are managing their inventory. They then compiled the answers to compare the ones who used a lean inventory system versus a normal inventory to evaluate and graph how the difference in styles can impact performance.
The results from the Top 25% of performers versus Average Performers were remarkably distinct. Find out the correlation between being a top performer and average performers and the amount of inventory they each carry at the green button below.
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