Inventory Management is generally expensive (bordering on excessive in certain industries) but from my experience over the past 15 years or so, and by listening to others, it shouldn't be. Granted that’s a very generalised comment but I would be very interested to chat to companies who have 'zero wastage/100% optimised' Inventory management process.
I like to think of the following phrase (of course there are others you can think of but I like to keep things simple).
“Buy what you need. Use what you buy.”
With the best will in the world, inflated expenditure on parts and equipment (regardless of the industry) is going to happen - but how is that expenditure controlled? How much does your company spend on spares and equipment each week/month/year? Do you have multiple storage sites and clear visibility of where your 'money' is sitting? How do you ensure you're not duplicating stock? How much is spent on 'convenience reordering'? When and how did you last check? I could go on with questions but I'll save you from the list!
There is no magic wand to achieve the aim of minimising financial wastage but there are areas that are overlooked which impact on this issue. Have a think about what departments (of the company you work in) have an interest in what’s lying on the shelf in the warehouse. How do you/they all interact to achieve an optimised Inventory Management process and reduce and maintain costs? What areas need to be improved? Will Management consider those changes or at least listen to them?
To round of this post.......It's time to have your say.
Below is a link to a short questionnaire (note: The questionnaire is anonymous and adding any contact details is optional) that you are welcome to complete. In fact, I would urge you to complete it if you currently work within the Inventory Management process. 5 Minute Questionnaire
Thankyou in advance to taking the time to fill out the above linked questionnaire and thank you for taking the time to read this article. The next one from me will more than likely be an overview of the results.