Mature inventory management for supply chain automation: An interlinked process-reference model

Mature inventory management is central to supply chain automation (SCA) as it enables targeted automation and autonomization of relevant process variants. Inventory management divides stock-keeping units (SKUs) into a manageable number of groups, enabling effective and efficient handling of different strategic inventory policies. Multi-criteria ABC (MCABC) is a standard method for evaluating SKUs. However, holistic, risk-reducing, and value-adding inventory analyses are not standard practice, even though one-dimensional analyses are outdated from a research perspective. In cooperation with a case study company, we set up an end-to-end MCABC inventory analysis, analyze 21 inventory management tools, conduct an exhaustive literature review (n = 108), a global survey of 60 practitioners, and a focus group discussion with four practitioners. We develop and discuss an interlinked process-reference model for mature inventory management. We provide actionable insights for researchers and practitioners to establish resilient, value-added, and sustainable inventory management practices as a foundation for targeted SCA.