Inventory Reduction, Now Selling 20 Ideas
Cut the package size, customers may want less right now.- Increase the package size, customers will take what they can get.
- Have a 2 for 1 sale.
- Bundle a slow mover with something else.
- Change the safety stock service level from 98% (or where ever you have it) to 95%.
- Reduce the number of A items.
- 2%10 net 60.
- Double up your cycle counting.
- Start and Inventory Reduction process if you don’t already have one, retool the one you do have.
- Encourage more vendor consignment stock.
- Add some technology and reduce transaction delays.
- Find closer suppliers.
- In-source some of your suppliers.
- Switch from make-to-stock to make-to-order, or finish-to-order.
- Move inventory and material control to your production people.
- Blow up the warehouse and move parts to point-of-use.
- Switch to 3rd party logistics. Have a 3PL but don’t see the benefit, the fire them and get a new one.
- Create a logistics function; consolidate and leverage.
- Forward Cycle Count – count items needed in the near future, find the stock outs before they bite you.
- Pull a few Kanban out of circulation, wait and see what happens, pull out some more, if it gets ugly put one back.
