GPS CUSTOMER CASE STUDY:
Manufacturer Selects GPS Proven Cost Effective Exit Strategy for Slow Moving Inventory
Based upon an analysis of their inventory, a manufacturer of construction machinery identified a large amount of slow moving parts that had sporadic, unpredictable usage. Through their analysis they discovered that the inventory carrying costs for this portion of their inventory far outweighed any future profits. Plus, these slow moving parts were negatively affecting their overall inventory turns and occupied a large number of warehouse locations.
However, the manufacturer also understood the need to provide long term customer service and consequently the need to continue to have immediate access to these parts. Their brand integrity and their image in the market place must be maintained for their dealer organization and future product sales.
GPS Inventory Solutions presented its Inventory Bank programs that offered cost effective solutions that either reduced or eliminated their overhead and inventory costs while still providing a high level product support.
The manufacturer selected the Shared Profits Inventory Bank program as they were confident that it would provide the cost savings that they needed, along with the immediate availability of these slow moving parts to their dealer network. Freeing up warehouse space was a major bonus.
How the GPS Shared Profits Inventory Bank works for slower moving inventory:
- GPS obtains ownership of inventory - OEM write off required
- GPS relocates, warehouses, manages, and distributes the inventory
- No storage or transaction fees apply
- OEM refers Dealers to GPS Inventory Bank for product needs
- Dealers have easy 24/7 online access to GPS database for checking item availability
- Excellent customer service
- Same day shipments available – All orders shipped within 24 hours
- GPS pays OEM rewards for allowing visibility in its system and dealer referrals
Here are the benefits gained by using the GPS Shared Profits Inventory Bank Program:
- Immediate line item availability to satisfy customer demand
- Dealers have online 24/7 visibility of available parts
- Brand and market integrity protected
- Long term product support
- Freed up valuable warehouse locations
- Increased working capital
- Increased inventory turns
- Improved workforce efficiency
- Improved cash flows
- Increased profits and shareholder returns
GPS Inventory Solutions has provided this customer with a proven cost effective exit strategy for their entire excess and slow moving inventory. They now use the SHARED PROFITS PROGRAM along with our 3.5 Inventory Bank program, which manages slow moving inventory not ready to be written off.
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 programs@gpsinventorysolutions.com.
GPS Inventory Solutions, Inc.
Email: programs@gpsinventorysolutions.com
Website: www.gpsinventorysolutions.com
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.
