Swot Analysis Of Perfetti Van Mele

Inventory Turnover Ratio

The inventory turnover ratio in Perfetti Van Melle indicates how many times the inventory is ‘turned over’ in one year. In other words, it shows how quickly inventory can be sold. Inventory turn over ratio shows how many times in a year the inventory is sold. This shows the company with high turnover ratio is able to sell inventory more frequently. With this ratio we can easily compare the companies on inventory utilization. Major disadvantage of this ratio is that we cannot compare two firms from different industries. There is huge variation in the inventory holdings of different industries and organizations. For example in one industry inventory is held for longer time for operation while in other it is requiring

But care has to be taken about generalisation. A survey should be conducted to confirm this statement. The differences between the numbers of manufacturers and retailers that have adopted SCM may be due to the fact that retailers are the dominant party in the relationship. And, consequently, only few have seen the importance of having a more partnership style approach to relationships with their suppliers (i.e. the manufacturers). Manufacturers, on the other hand, as the dominated party, may have been more open to establish a more partnership style of approach to relationships with their customers (i.e. the retailers). The differences found may be also due to the fact that all manufacturers in the sample were leaders in their respective product categories, while retailers were all from the same sector. In this sense, if we had interviewed manufacturers from the same product category, we would probably have found more differences (in terms of SCM development) among

But there were some minor discrepancies between retailers’ and manufacturers’ responses: First, with respect to the reductions in stock levels, most of the manufacturers believe that higher supply chain collaboration will lead to a reduction in inventory. However, in practice, this result has not been achieved by most of the manufacturers that have implemented ECR. This is due to a lack of critical mass. In order to benefit from stock reductions, manufacturers need to have at least 30% of their sales under a collaboration program. On the other hand, retailers do not need any critical mass to benefit from stock reductions: All retailers that have implemented an ECR initiative have benefited from stock