Abstract
High inventory exposure across the multi-echelon supply chain could result in significant financial repercussions for a global enterprise. This necessitates the need to quickly respond to marketplace dynamics to thwart the financial risks posed by demand volatility, short product lifecycles, rising service expectations, and diminishing brand loyalty. Traditional supply chain solutions are, however, not geared to address these challenges.

This paper discusses the need for a solution that measures and evaluates potential inventory risks lurking in the supply network and proactively renders alerts on a real-time or near real-time basis. The paper suggests analyzing inventory liability through metrics like ‘Inventory Exposure’ and ‘Valuation of Multi Echelon Inventory Obsolescence’. This can help companies gain enterprise-wide visibility and analyze impact of events on a near zero-time basis thereby minimizing opportunity costs and mitigating financial risks.

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