Demand signal quality
Forecasts that miss at item level push planners to hold cover the business never needed.
Measure: Demand Forecast Accuracy %Oracle Fusion Inventory
Estimate the working capital locked in slow-moving stock, then see where demand signals, replenishment rules and excess cover are holding inventory inside your Oracle Fusion supply chain.
Inventory turnover ROI calculator
Model the working capital released by turning stock more often, and the annual carrying cost that comes back with it.
Annual COGS for the inventory in scope.
Cost of goods sold divided by average inventory value.
A realistic target for the product mix in scope.
Storage, insurance, obsolescence, shrinkage and cost of capital.
Where inventory value gets stuck
Forecast error, safety-stock defaults and supplier variability each add cover. The aggregate cost stays hidden when inventory is reviewed only as a total value.
Forecasts that miss at item level push planners to hold cover the business never needed.
Measure: Demand Forecast Accuracy %Safety stock, reorder points and lot sizes set once at go-live rarely match current demand.
Measure: Inventory Turnover RatioSlow movers and end-of-life stock hold cash while write-off decisions are deferred.
Measure: Dead Stock %Unreliable lead times get absorbed as extra cover instead of being managed at the supplier.
Measure: Supplier OTIF (On-Time-In-Full) %Further reading
Dead Stock Is a Decision, Not Bad Luck
Dead stock is a decision, not bad luck: who owns the call to clear it.
Read the article
When Planners Override Oracle Forecasts, Who Measures the Value Lost?
When planners override Oracle forecasts, who measures the value lost?
Read the article
What Does Your Oracle Fusion Supplier Scorecard Miss When It Only Measures Price?
What a price-only supplier scorecard misses, and the lead-time cover it costs you.
Read the article Watch
Strengthen Inventory Data Accuracy & Traceability in Oracle Fusion using Orbrick's SEER Framework 6 min
Working Capital Optimisation: From Metrics to Measurable Business Outcomes 19 min
Next step
A Value Discovery measures turnover in your own Oracle Inventory data and separates the cover that protects service from the cover nobody is managing.