Inventory Reduction: Effectively Turning Excess Into Cash


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Inventory Reduction: Effectively Turning Excess Into Cash
R. Michael Donovan - May 16, 2002

Introduction

In virtually all manufacturing companies, there is a direct correlation between inventory levels and overall business performance. According to Harold Geneen, the legendary financial genius and former chairman of ITT, "all the problems of business end up in inventory." Most knowledgeable executives would agree with Geneen. In fact, CEO's and CFO's believe that their companies consistently carry 25 to 40 percent or more inventory than is needed...

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