The Procurement Group

Inventory Lifecycle Management

The Procurement Group provides full-service inventory lifecycle management to companies struggling to meet the challenge. Our services include economic order quantity (EOQ) optimization, min/max reordering, replenishment, Kanban management, cycle count, physical inventory, knowing the life stage of each product, and forecast potential demand. This ensures that companies order the right amount of stock, preventing the accumulation of excess and potentially obsolete stock. Inventory lifecycle management services help companies ensure that stock levels continue to reflect consumer demand.

Excellent knowledge of customer demand and the product life cycle is key to the success of TPG’s inventory lifecycle management service. The product life cycle has four stages. They are:

• Launch Stage: This is when a new product is introduced into the market. It is usually a high-risk period for companies as they do not know how customers will react to their products. When customers react badly to the launch of a product, companies are usually left with lots of unwanted stock. TPG assists companies at this uncertain time by utilizing data from similar product launches to forecast possible customer reactions.
• Growth Stage: When a company’s product's popularity increases, its sales will also begin to rise. At this stage, TPG carries out regular demand forecasts to ensure that stock levels meet the increasing demand. TPG also helps companies to monitor their safety stock in case of a sudden surge in sales. TPG helps companies examine reorder points to optimize their cost model when a product is in its growth stage.
• Maturity Stage: In this stage, growth slows down, and companies may begin to see slow, fast, or erratic demand patterns. TPG continues to carry out regular forecasts to ensure that stock levels are concordant with demand. Towards the end of the maturity phase of a product, TPG begins to lower the amount of inventory in anticipation of a drop in demand. TPG does this by lowering target service levels and reducing safety stock levels.
• Decline Stage: Demand for some products will decline as trends shift and new ones hit the market. TPG anticipates this reduction and takes steps to cut stock levels appropriately, preventing companies from being left with out-of-date products. TPG prevents clients' capital from becoming trapped in inventory or being completely lost by trying to ensure that excess and obsolete stock are almost zero at the very end of the product life cycle.

Determining the product life cycle stage of all non-stocked and stocked products can take time and workforce. The Procurement Group offers companies a world-class inventory lifecycle management service. TPG offers a highly skilled team of materials professionals to maintain your inventory. Contact The Procurement Group today to learn more!