Excess Management Strategies for Supply Chains

This guide discusses the complexities and strategies involved in excess management within service supply chains. It outlines how excess inventory arises from various factors such as over-ordering and market fluctuations, leading to increased costs and reduced profitability. The document emphasizes the importance of aligning excess management practices with service level agreements (SLAs) to ensure inventory availability. It details the role of Baxter Planning's Prophet tool in defining excess parameters tailored to specific business rules, including methods for calculating excess inventory. The guide also describes best practices for managing excess inventory, including the configuration of reports to identify materials for utilization or scrapping. Additionally, it highlights the consulting services offered by Baxter to help organizations optimize their excess management processes, ensuring a systematic approach to identifying and acting on excess inventory. The document serves as a comprehensive resource for organizations seeking to enhance their supply chain efficiency through effective excess management.