Thursday, July 1, 2010
Friday, April 30, 2010
Solutions for Excess Inventory in a Slow Economy
In our uncertain economy, many companies are looking to reduce inventories as a way to improve cash flows. This usually results in sending excess and slow moving inventory to the scrap yard or dumping material onto the surplus market recovering pennies on the dollar.
However, these same companies find that substantial inventory cuts can have an adverse effect on customer service and production along with being detrimental to their corporate “green” initiatives. Simply scrapping excess materials and sending them to the local landfill does not benefit anyone.
Whenever companies scrap or surplus material, they have little opportunity to recover an item for future use. Minimum purchase requirements from their vendors will force them to order more items than needed which will ultimately recreate their excess material. Long lead times may also be encountered which adversely affects their production and customer service goals.
And, if they sell their excess material into surplus outlets, they may be compromising their product market integrity. Surplus items can end up competing against them and their customers!
A company headquartered in Dallas, Texas has come up with a better solution. It is called the Inventory Bank and it purchases excess, obsolete, and slow moving inventory (OSMI). The parts are stored in its long term storage facilities where it becomes available for sale to the OEM and its authorized distribution network.
“Using our GPS Inventory Bank reduces operating costs and increases efficiencies while maintaining a high level of customer service and long term product support…all of which will ultimately increase profitability”, says Loretta Wallace, president of GPS Inventory Solutions. Adding, “Our Inventory Bank also protects our customer’s market integrity”. She concludes with saying, "GPS provides profitable solutions for unprofitable inventory."
GPS Inventory Solutions has over 30 years experience managing and distributing a variety of industrial products. They have strategic warehouse locations in the Dallas, TX and Knoxville, TN areas to provide their proven cost effective programs to Manufacturers throughout the U.S.
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