Thrive CEO Rick Morris Quantifies the Impact of Vendor Lead Time Variances on Inventory Profitability
Marietta, GA – November 9th, 2015
The CEO and founder of leading inventory optimization software provider Thrive Technologies is featured in a guest editorial about the direct correlation between vendor lead times and distributor inventory profitability in the October 2015 edition of the Supply House Times publication. Supply House Times is the official publication of the American Supply Association, a national organization serving wholesale distributors and their suppliers in the plumbing / heating / cooling /piping (PHCP) and industrial pipe / valve / fitting (PVF) industries.
In the article, Rick Morris, Thrive Technologies CEO, helps readers quantify the cost of vendors’ lead time variances, and offers step by step instructions to companies to start measuring and “dollarizing” this impact.
“Distribution and retail companies can increase the profitability of their inventory by working with their key vendors to improve their lead time performance. This starts by measuring actual lead times, converting the variances to a dollar impact, and providing this feedback to your vendors on a regular basis,” states Morris.
“Is this worth the effort? A distributor with $20 million in inventory and a vendor lead time deviation of 10 days can cut its inventory by about $1.5 million if it can help its vendors cut that deviation by only 2 days!” concludes Morris.
The article can be read here.
Thrive Technologies is a cloud-based, SaaS (Software as a Service) provider of inventory optimization software. They run their patent pending inventory optimization software in the cloud to attain forecast accuracy over 90% for their clients. Thrive can interface with all ERP systems used by distribution companies, regardless of platform (Windows Server, Unix, iSeries, custom,etc.) including Epicor Eclipse, Prophet 21 and Infor SX.e.
About Supply House Times
Supply House Times is the No. 1 media brand serving wholesale distributors and manufacturers reps of plumbing, bath & kitchen, industrial PVF, radiant & hydronics, and HVAC products. Our subscribers, including every member of the American Supply Association, know to turn to us for the industry's most reliable information. Supply House Times is the official publication of the American Supply Association. ASA trusts our editorial team to deliver industry news to their members. Visit their website at www.supplyht.com.