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. Reduce the safety stock service level (for example, from 98% to 95%).
  6. Reduce the number of A items.
  7. 2%10 net 60.
  8. Double up your cycle counting.
  9. Start an Inventory Reduction project 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, then 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.

 

 

 

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