Increasing Profitability by Eliminating Inventory Wastes and Shrinkage

Inventory levels for manufacturers and distributors represent a significant portion of company assets. Raw materials, work-in-progress, and finished product stock contributes to the increased amount of warehouse space required and a workforce to organize the storage, packaging, and shipping activities associated with proper distribution.

Inventory management solutions that offer businesses innovative methods and best practices for controlling supply chain procedures have the ability to reduce shrinkage and improvident wastes, while effectively streamlining production for greater inventory turns.

Discrete and process manufacturers, as well as wholesale and retail distribution companies that effectively manage the planning, formulating, assembly, and shipping procedures associated with inventory realize greater turns with lowered lead times, eliminated carrying costs, and significantly reduced waste for improved over-all efficiency.

Innovative Inventory Software

Inventory management software is available that offers increased visibility into every aspect of production. Programs include just in time coordination with suppliers to eliminate large amounts of raw materials and c-level stock to decrease the soft costs generated on parts needed for assembly.

The increased communication allows manufacturers to negotiate fixed prices on certain components and supplies, effectively controlling costs in a fluctuating economic marketplace. Distribution facilities can effortlessly synchronize cost saving, cross-docking procedures to expedite client shipments.

These methods generate a significant reduction in housed inventory, removing wastes that occur from accidental damage and product obsolescence.

Department Coordination

Integrating every aspect of company operations into one, all-encompassing data system allows for enhanced communication between departments, preventing inventory stock-outs that can halt production, and costly overstock occurrences.

Greater visibility in the supply chain allows companies to lower instances of shrinkage, offering inventory management solutions that effectively track replenishment processes, accurately and constantly monitor inventory levels, and develop relationships with suppliers to ensure exact shipment counts.

Additional Tools

To control stock levels to increase profits requires accurate processing methods that provide superior inventory management. The ability to customize bar style identification codes with specialized readers eliminates data entry errors and offer instant access into current inventory levels.

The software programs utilize the data to generate insight into the production status and costs, along with yield, and quality control information.

Gaining supremacy over inventory management to reduce operational costs, free additional working capital, and increase profitability can be achieved with innovative software, designed to offer supply chain dominance, and consequently eliminate despicable instances of inventory shrinkage and waste.

Learn more about managing inventory costs in just 15 minutes, with our free On-Demand Webinar!

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