Inventory Management

We have found that many companies can reduce cost and increase cash flow by taking a hard look at managing inventory. Many manufacturing companies are unaware of the amount of excess, obsolete inventory they have. It is an easy situation for a manufacturing company to get into since the Sales force is usually concerned with the most current goods that produce the highest margins. Over time these obsolete inventories build, locking away valuable assets. We help companies identify excess, obsolete inventory based on their definition. Typically this is inventory that does not have any true demand (orders) or anticipated demand (forecasted orders). We also help companies to prevent excess inventory by comparing current inventory and planned additional inventory levels to actual and forecasted demand within the planning horizon. "Are you making more than you anticipate selling?" We identify anticipated shortages - potential lost opportunities. The purpose is to improve cash flow by turning obsolete inventory into cash, improve ROA by reducing inventory, increase margins by reducing excess inventory as a percent of inventory, improve customer satisfaction by increasing order fulfillment rates.