1. Define the problem: What type of inventory needs to be managed? Raw materials? Work-in-process? Finished goods? Why is there too much inventory? Different solutions address different points in the manufacturing or retail process.
2. Define current inventory levels: Choose which bottlenecks to address, and set a realistic goal for reduction.
3. Get buy-in from suppliers: No matter where in the process you will reduce inventory, it will affect suppliers. They, too, may want to streamline deliveries to reduce their own inventories. Working with suppliers instead of against them will make the process easier.
4. Decide whether you want to integrate your inventory management software solution into others, buy separate inventory programs to address specific issues, or hire either a contract or staff IT professional to build a custom solution.

Action Steps
The best contacts and resources to help you get it done

Tips & Tactics
Helpful advice for making the most of this Guide

• Some providers may push RFID to manage inventory. Some companies are successfully doing this, but in most they are using RFID because of a customer mandate. Many industry analysts say RFID systems do not yet have proven ROI outside of mandated implementations.
• Before buying into inventory management software, do all that you can do to reduce inventory by improving processes. These fixes often don't require capital investments.
• Look for online demonstrations of inventory programs. Many inventory management software companies give live, no-obligation demonstrations of their products via Webcasts. Ask them when the next one is scheduled.