Can asset operators realise post-COVID quick wins through an inventory review exercise?

by John Grout, Managing Director, Secora

The global supply chain faced unprecedented challenges during the COVID-19 pandemic, including disruptions in transportation, shortages of critical goods, and unpredictable shifts in consumer demand. In the wake of the pandemic, it is crucial for major asset operators to conduct a comprehensive review of inventory holdings.

With disruptions and uncertainties in supply chains at an all-time high during the pandemic, organisations had to swiftly adapt to ensure operational resilience. This often led to the accumulation of inventory holdings up to 2-3 times pre-COVID levels. These excessive holdings extended beyond critical and insurance spares, indicating a broad trend of overstocking.

Although global supply chains remain somewhat stressed, the most concerning areas are now well understood, and most organisations have targeted mitigation strategies in place. A better understanding of risks can inform more precise responses, presenting an opportunity to reduce redundant excess stock without impacting operations.

Our studies have identified tens of millions of dollars of low-risk excess inventory, which can be targeted for reduction.

By reevaluating and recalibrating inventory management practices, we can help optimise resource allocation, reduce holding costs, and streamline procurement processes. This proactive approach not only enables organisations to respond with more agility to future challenges but also contributes to cost savings and resource efficiency. There's an opportunity to leverage the lessons learned during the pandemic to fine-tune inventory strategies, ultimately enhancing operational readiness and long-term sustainability.

At Secora, our approach to tackling the challenge of excess inventory is distinct. With over 15 years of experience in this specific issue across the government, defence, resources, and utilities sectors, we are proud of our long-term client relationships and customer retention.

If you need assistance with realigning your inventory holdings, get in touch with us at Secora, and let's start the conversation.