A new Aberdeen Research report, entitled "Technology Strategies for Inventory Management: How to Convert Inventory from Cost to a Competitive Advantage," examines why manufacturers are taking a closer look at inventory management practices and the technologies that are currently available. Nearly two-thirds of respondents told Aberdeen they have been asked by management to provide recommendations in the past six months on how to improve their inventory management technology. A majority is looking at inventory as a cost-related item (63 percent), but 27 percent of companies are thinking of inventory as a way of gaining market share through superior service and product availability.

A shining example of inventory management on the "bleeding edge" comes from Canadian Transportation and Logistics. The story is about how Imperial Tobacco Canada is revamping its entire supply chain "direct-store-delivery" strategy, which includes some nifty inventory management solutions from Ryder Systems Inc. Check it out:

This "purpose-built" delivery system, the first of its kind in the Canadian tobacco industry, will employ over 400 specially trained truck drivers and material handlers, more than 200 customized delivery vans, and 21 warehouse and cross dock facilities. In addition, Ryder will design and operate customized information technology systems to provide order visibility and inventory management.

It appears that pharma's got game when it comes to inventory management, as well. Trading Markets recently posted a brief about Endo Pharmaceuticals, which recently signed an inventory management agreement with one of its wholesale drug distribution companies in an effort to prevent out-of-stocks of one of its popular drugs.

Endo President and CEO Peter Lankau said, "The benefits we derive from these agreements include better channel inventory planning and data management services. Similar to the phenomenon that we experienced with another major wholesaler when we signed our first IMA in late 2004, inventory at this customer has trended toward historically low levels."

Of Purdue Pharma and its purchase of SmartForecasts Enterprise technology, Supply & Demand Chain Executive recently reported how Purdue expects integrating customized forecasting with its current enterprise resource planning (ERP) system to help reduce inventories while maintaining high service levels:

Smart Software has provided consulting and integration services that will enable Purdue to integrate SmartForecasts with JD Edwards, which will enhance alignment between the company's Marketing and Materials Management groups, as well as reduce costs associated with data re-entry. The resulting customizations will also enable the groups to generate accurate forecasts and inventory stocking recommendations that optimize inventories and account for often long lead times for raw materials.

Not too shabby. In addition, sales and marketing personnel will be able to generate a series of reports that will help them manage planning and budgeting.

According to John Stewart, executive vice president and general manager, Purdue Pharma Canada, "To improve inventory management, we need to improve the way we make stocking decisions. We expect that, with the advanced capabilities of SmartForecasts Enterprise and the consulting work provided through Smart Software, we'll greatly improve the efficiency of our operations."

What are you doing to take stock of your current inventory management procedures?