Inventory is an important player in boosting business resilience in a volatile environment like the current one.
Generally, if a company is actively operating - eg. generating and delivering value to its customers, the company would want to maximise the value of all the resources including inventory during the process.
A resource well utilised contributes to cost reduction, profit-generating and healthy operations.
Here, the Low-cost Strategy is a very conservative one that may be good for a hibernating business.
Otherwise, minimising inventory for the sake of keeping the book cost down may not be a good strategy for a business that is running dynamically.
To boost the resilience and long-term operating performance in the current disruptive global environment, the Response and Differentiation Strategies should be the ones to be more looked at for the specific business context and its overall strategic business plans (short and long term ones).
More to this, there are in-depth ways- tactics- strategies around inventory and the broader supply chain management for building up resilience and sustaining business competitive capacity.
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