Is your inventory management functioning well? Is your customer service poor because of stock out? Poor inventory management can be harmful to your business. Do you think you need some help in your inventory management? Do check out our service below.
Managing Inventory for many Small to Medium Enterprises, SME’s, can be a massive headache. It’s a major investment and has a significant impact on overall performance and service. Problems can arise due to a lack of resources, skills, or systems. But generally, these problems are easy to fix.
If your Inventory Management function is not performing well, the typical impacts you’ll see are these:
- Poor customer service performance due to stock outs.
- Too much old/obsolete stock (and warehouse getting clogged up).
- Higher than expected investment in inventory (stock).
- Low turnover of inventory (stock turns). For example, you should have these benchmarks for finished goods stock turns:
- Pharmaceutical sector: Above 8
- Manufacturers: Above 15
- Suppliers to Retail: Above 10
- Industrial Suppliers: Above 9
- Distributors: Above 8
- Food and Beverage (Ambient): Above 20
- Food and Beverage (Chilled & Frozen): Above 18
In most smaller businesses, poor inventory management can have a crippling effect on the business. It ties up capital and impacts customer service, that in turn impacts sales.
Our SME Inventory Management Audit
Our SME Inventory Management Audit is designed to identify your major inventory issues, the root causes, and provide you with the guidance and roadmap to improve performance.
Conducted with 2-3 weeks and at a cost of under $10,000 + GST, our approach will give you the following benefits:
Inventory ABS analysis to establish through-puts and criticality of products.
Review of forecasting and inventory management processes and systems.
Review of Supplier reliability impact on inventory holdings.
Review of demand offtake and seasonality.
A tailor made Key Performance Indicator report to manage Supplier relationships ongoing.
A customised roadmap to improved inventory performance.
A 2-hour workshop with selected staff to explain and impart the performance improvement roadmap.
Membership to our 12-month online Supply Chain Education Program (valued at $800) for up to four staff.
Why not talk to one of our team about this service, to see if it meets your needs?