10 Things you can do to reduce inventory now

Things you can do to free up some cash right now:

  1. Adjust safety stock
  2. Reduce safety lead time
  3. Cut PO quantities in half and double the number of receipts
  4. Implement supplier kanban (its not that hard)
  5. Rebalance your A, B, C items and discontinue some of the C’s
  6. Put Purchasing on a strict diet – limit monthly spend to 1/10 of the annual plan
  7. Revise the annual plan to reflect current reality
  8. Suppliers are hungry, so lock in shorter lead times
  9. Liquidate your slow moving stock: have a Sale
  10. Reduce production lot sizes

 

 

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