Inventory Reduction, Now Selling 20 Ideas

  1. Cut the package size, customers may want less right now.
  2. Increase the package size, customers will take what they can get.
  3. Have a 2 for 1 sale.
  4. Bundle a slow mover with something else.
  5. Change the safety stock service level from 98% (or where ever you have it) to 95%.
  6. Reduce the number of A items.
  7. 2%10 net 60.
  8. Double up your cycle counting.
  9. Start and Inventory Reduction process if you don’t already have one, retool the one you do have.
  10. Encourage more vendor consignment stock.
  11. Add some technology and reduce transaction delays.
  12. Find closer suppliers.
  13. In-source some of your suppliers.
  14. Switch from make-to-stock to make-to-order, or finish-to-order.
  15. Move inventory and material control to your production people.
  16. Blow up the warehouse and move parts to point-of-use.
  17. Switch to 3rd party logistics.  Have a 3PL but don’t see the benefit, the fire them and get a new one.
  18. Create a logistics function; consolidate and leverage.
  19. Forward Cycle Count – count items needed in the near future, find the stock outs before they bite you.
  20. Pull a few Kanban out of circulation, wait and see what happens, pull out some more, if it gets ugly put one back.