No matter
what your inventory carrying cost, the bottom 60% of your inventory should be
your highest operating priority. Any money or space that you use on this
inventory is a negative pull on your overall asset base and operating
efficiencies.
On the other
hand, the bottom 60% of your inventory, no matter how slow moving it is, is
very important to your long range customer service levels.
Getting the
most benefit from your slow moving inventory means you have to reduce or
eliminate the future cost of having it available. Accomplishing this requires a change to the environment
it resides in WITHOUT interrupting your customer service, sales or
profits.
When you
take an annual write off, it is usually a small percentage of your actual slow
moving inventory and afterwards there is still a lot of it left on your shelves.
While these small write-offs do help, more action is needed to improve the
actual day to day operations and the managing of your inventory carrying costs.
Solution: A Well Planned Exit
Strategy
A well planned
GPS 2-Stage Exit Strategy for the entire list of your slow moving inventory is
the only cost effective solution and best practice asset management tool
available.
Here is how
it works:
Stage 1 - Deposit your slow moving inventory
into a GPS Inventory Bank distribution center that is designed specifically to
manage long term, slow moving inventory. GPS will pay the freight to relocate the
inventory to their nearest slow moving inventory distribution center. Your only
cost is a minimal flat rate fee which provides free unlimited in and out
transactions.
Using the
Stage 1 program greatly reduces your inventory carrying costs and immediately
frees up space in your facilities.
Stage 2 - When you are ready to write off any
of the slow moving inventory, GPS will accommodate this requirement by taking
ownership of that portion of the slow moving inventory thru its Inventory Bank
programs. It’s as easy as a quick email or phone call to move inventory to the
next stage. Plus, now you have
completely eliminated all carrying costs on this inventory!
Using the GPS 2-Stage Exit Strategy
provides:
- Greatly reduced or eliminated inventory carrying costs
- Free up space in your facilities
- No need to seek out space and set up operations to house slow moving inventory
- No more committee meetings trying to guess what to keep and what to purge
- No interruption to long term customer service
- No resourcing items at a one off inflated price that you purged last year
- Maintain your prices without inflation
- Maintain gross profits without reductions
- Reduce or eliminate production interruption for items needed in the field
- Protect your inventory from the surplus market
- Easy implementation within your systems. The transition is as quick as you can pick and pack the inventory for transportation. GPS handles all the transportation arrangements
The GPS 2-Stage Exit Strategy is your
solution to the management of your entire slow moving inventory. Contact GPS
Inventory Solutions now to learn how to cost effectively eliminate the
drain on your operating budgets and to improve your overall efficiencies.
Call (800) 896-0477