Henri van der Eerden, Global Practice Leader, REL, a div. of The Hackett GroupFrom Henri van der Eerden, Global Practice Leader, REL, a div. of The Hackett GroupAll LogisticsInventory Planning & Optimization: Can Inventory Reductions Achieved in 2009 Be Sustained?Analyst Insight: Although companies were able to reduce absolute inventory levels by 10 percent from Q3/2008 to Q3/2009, a closer look reveals that Days Inventory On-hand deteriorated by 7.5 percent, resulting in excess working capital requirements of $50bn for the largest 1,000 U.S.-headquartered public companies. If not regained, this lost efficiency will become a more significant cash drain than expected in 2010.February 24, 2010Page 1 of 1
