Inventory Investment Buying (forward buying) is a strategic part of the buying role that many companies don’t realize today. The truth: Investment Buying that is based on accurate demand forecasting and effective inventory optimization processes delivers significantly higher gross margins, better GMROI, and balanced inventory levels.
Buying and maintaining inventory is often viewed as a cost center and companies struggle with these 4 basic questions:
- When do I buy?
- What quantity should I buy?
- When I buy, how can I balance inventory levels?
- A vendor has offered a discount, how much more, if any, should I buy?