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It is acknowledged that UK SMEs make a significant contribution to its economy. However, SMEs are generally slow to adopt new technologies due to intrinsic constraints such as lack of in-house expertise and investment limitations. Inventory is a key asset in any organisation. Most SMEs use of some form of IT platforms to manage inventory but it appears that inventory optimisation is not a prime goal. If deployed correctly, inventory optimisation can significantly reduce costs and improve operational effectiveness. This paper presents the underlying causes behind the lack of commitment to inventory optimisation in UK SMEs based on the evidence gathered from industry and literature. It also outlines potential actions that may be taken to motivate adoption of inventory optimisation in SMEs.
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