Math of Better Forecasts
The Math is Simple
Cutting 10 days of inventory is the equivalent of a one-time 33% reduction of your carbon and water footprints.
Using the prior example of a 12 time lifecycle multiplier, the math is simple:
This is the same as shutting down global operations for 4 months of the year. The savings are even higher if the disposal of perishable goods, inventory obsolescence or shrinkage is accounted for. Not to mention the ongoing carbon savings from more efficient transportation (few expedites, transships, deadhead miles and shifts to intermodal) and less warehouse space.
The implications are staggering at this scale. While there is no silver bullet when it comes to sustainability, using better math to lighten your inventory footprint might just be the closest thing. Terra Technology solutions of Demand Sensing, Multi-enterprise Inventory Optimization and Transportation Forecasting will help you get there.