One constant in supply chain management is the focus on inventory control. In many respects, inventory management is at the core of supply chain thinking.

In a recent research note, analysts David Aquino and Hussain Mooraj of AMR Research present a model of what they call the "five pillars" of initiatives to reduce inventory levels, as illustrated below.

Source: AMR Research

"Having a fact-based dialogue among functional groups and with customers on the effect of inventory on total supply chain cost will allow for easier adoption of inventory reduction programs," Aquino and Mooraj write. "Design your organizational incentives accordingly to facilitate this dialogue in order to improve cross-functional alignment on inventory decisions."

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