Wednesday, August 24, 2016

Too Much Inventory – Not Enough Space


Too Much Inventory – Not Enough Space 

A manufacturer of large industrial machinery was running out of room to store all of its production and service parts.  They had already established an exit strategy for their excess and slow moving parts by using one of the GPS Inventory Bank programs.  This created some much needed space and cost savings.

However, they were at the point of having to add another building to their footprint along with all of the additional costs. During their analysis of their inventory, a large batch of parts were identified that had slow unpredictable movement but they had not yet met the threshold to be completely reserved and scrapped.  One option considered was to move these items to a local 3PL warehouse to be stored and managed. They reached out to GPS Inventory Solutions for other options.

GPS presented its 3.5 Inventory Bank program as a solution that allowed this manufacturer to retain ownership of the inventory but move it to GPS facilities for storage and distribution.

How the GPS 3.5 Inventory Bank works for slower moving inventory:

  • OEM retains ownership of inventory -  No write off required
  • GPS warehouses, manages, and distributes inventory
  • OEM reduces annual inventory carrying costs to a minimal
  • GPS provides unlimited storage & distribution for a flat annual 3.5% fee of the total inventory value – No other transaction fees apply 
  • OEM realizes normal profit margins from sales transactions 
  • Easy transfer to Standard Inventory Bank once reserves are available for write off 

Here are the benefits gained by using the GPS 3.5 Inventory Bank Program:

The manufacturer found that the GPS simple 3.5% annual fee was much less than the costs quoted by the local 3PL.  Plus, there would be no additional transaction fees when they needed to move inventory.

After the designated inventory was moved to a GPS facility, the manufacturer was able to free up the space needed for new products without the costs of adding a new building.  They also found that they significantly reduced their inventory carrying costs using the GPS 3.5 program.

Once this manufacturer is ready to write off this inventory, one phone call can easily transfer it to the Standard Inventory Bank program.

For more information or to schedule a presentation to learn more about how our proven Profit Driven Inventory programs can work for your company, please contact us at (800) 896-0477 or email

GPS Inventory Solutions, Inc.

Toll-Free: (800) 896-0477

About us: 
GPS Inventory Solutions has been an innovative leader in managing slow moving inventory for manufacturers in a variety of industries for over 30 years.  Our goal is to significantly reduce or completely eliminate your costs of carrying excess and slow moving inventory without impacting your customer service, sales or profits.  GPS headquarters are located in the Dallas/Ft. Worth area with additional locations in the Nashville, TN area.