Less capital should be tied up in your inventory?
But how can inventory be reduced without compromising sales?
A legitimate question. Inventory ties up liquidity and also costs a lot of money! Annual costs of storage range from 19 to 30 percent!
Excess inventory usually stems from three major issues:
- the structure of your value chain,
- the organisation of your value chain and
- the planning and controlling of production and purchasing.
These causes need to be checked and adjusted by taking the appropriate steps. With the right tools and techniques, you can quickly find starting points for a fast and lasting inventory reduction.
We can easily assess the amount of inventory you can reduce with our E:S:A analysis.
Let’s talk to each other:
Our specific approach allows for 20 percent of inventory reduction in 80 percent of all cases; without compromising your ability to deliver on time.
Together we will identify your existing inventory drivers. Using constraint analysis and simulation, we will examine the significance of these inventory drivers, calculate the effectiveness of different stock-cutting measures and thereby identify the most effective approaches. Not only will we assist you with the analysis and the implementation of these approaches in your company, we will also make sure that your inventory stays where it belongs.
About 50 percent of your excess inventory will have vanished within six months! And you can put your capital in more profitable investments.
At the end of the fiscal year, less scrap will have to be financed or accounted for, plus there will be more space in your warehouse. No one will trip over boxes of obsolete items anymore and you will not have to convince anyone of your idea of enlarging the warehouse either.
You will see: Success is slim- all you need is a little help.