Monday, December 2, 2013

Thinking about the cost of slow moving inventory

If your business stocks spare parts to provide long-term customer support, have you ever thought about how much that excess inventory is costing you?

On the surface, it might not seem like much, but let’s break it down. Say your excess inventory is worth $1,000,000. You don’t want to throw that investment away, but it costs money to sit there. There’s the real estate of the space, the wasted man-hours handling it, and the absence of profit from better-selling parts that could be there. No matter how it breaks down, when you add it all up, that cost runs up to 35% of that inventory’s value every year. How long have you been writing this number off? If it’s more than three years, you’re paying more than your inventory is actually worth, but you know that the day you scrap it is the day a customer is going to need it.

What if you could get rid of this cost and get this excess and slow moving inventory off your books but still have access to it? What if you could re-allocate these resources for more profitable inventory? What would that do for your organization?

Find out with GPS Inventory Solutions, a profitable solution for unprofitable inventory. What’s GPS Inventory Solutions? It’s how more and more companies are getting rid of their excess inventory. When you scrap slow moving inventory, it’s gone forever, but when you deposit your inventory into the GPS Inventory Bank, you eliminate the expense of ownership while preserving the availability of each part. Through our program that’s customized to your company’s needs, we assume ownership of your inventory. As the owner, we’ll transport that inventory to our high density, long-term storage facilities, keeping the parts until they’re no longer in demand.

But, say they do come back in demand. We’ll provide immediate parts availability, shipping to you or your customers as requested, even on weekends and holidays. While we take care of your excess and slow-moving parts, you’ll free up space and working capital for more profitable inventory and other corporate initiatives. What’s more, we protect your brand and your market. In fact, we don’t sell out of your authorized distribution network. That’s why so many companies rely on us to balance customer demand with the need to control costs and improve profits.

The inventory is off your books, yet you still have access to it, and that storage cost eating into your profits? Gone. It’s a win-win situation, so why wouldn’t you want to do this? For your profitable solution to unprofitable inventory, turn to GPS Inventory Solutions.

How much longer can you afford to let your excess inventory eat into your bottom line? Contact us today for a complete analysis to discover how much your business can save.

Sunday, November 24, 2013

Crossword Puzzle for Inventory Managers

2. Free up warehouse space but keep parts availability with an "inventory _________."
4. provides "inventory ____________."
5. Abbreviation for obsolete, and slow moving inventory.
1. If this is slow-moving it can hurt your bottom line.
3. Financial and top management like reducing "inventory carrying ______."

click here for answers

Monday, October 14, 2013

Aerospace OEM slow moving inventory solution case study

Challenge:  A major aerospace OEM has the requirement under contract to maintain spare parts availability for years after the initial sale of the product.  Maintaining this essential, but slow moving inventory has proven to be costly in the terms of inventory carrying cost.  Typically inventory carrying cost ranges from 20 to 35% of the inventory value per year. The slow moving inventory consumed millions of dollars of operating profits and thousands of warehouse locations. This prevented them from effectively growing the business for new product or improving existing customer service without making a major investment in facilities and increasing employee cost.
Solution:  GPS Inventory Solutions Inc. introduced them to the GPS INVENTORY BANK PROGRAMS. When they deposited their slow moving unpredictable demand inventory into the INVENTORY BANK, they were able to continue to provide long term customer service without the inventory carrying cost and they created about 18000 available locations. This provided the finances and space for growth they were seeking.
Results:  Their long term customer service was not interrupted and sales from the INVENTORY BANK actually provided a profit. They saved over four million dollars per year in inventory carrying costs. They freed up locations (18000) for faster moving inventory. Warehouse efficiencies improved as well as did inventory turns and gross profits. These benefits were recognized immediately after depositing the inventory into the GPS INVENTORY BANK.
About the solution provider: GPS Inventory Solutions Inc. (GPS) has been providing these benefits for companies in various industries for over thirty years.  They offer two INVENTORY BANK PROGRAMS. The STANDARD program is used by companies who want to write off the inventory without sacrificing customer service. The CUSTOMIZED INVENTORY BANK PROGRAM is used by companies who do not want to write off the inventory, but want to greatly reduce the carrying cost and gain all of the benefits of the STANDARD INVENTORY BANK.
Email: Inventory Management Programs
Phone 1 800 896 0477

Tuesday, May 7, 2013

Does Corporate want you to work miracles with warehouse space?

YouTube blocked at your company?
Put your mouse over the link below, click the right mouse button and select "save link as"
and save to your hard drive. Then click on the file and watch.
Right mouse click and select save as over this link to download the movie.

Friday, April 19, 2013

Free Inventory Cost Calculator

The inventory cost calculator is now available online for everyone.
Inventory Cost Calculator