Flex Space Warehousing

Cost Reductions to Improve Profits

During these uncertain times, many companies are facing daily struggles with cutting costs to offset declining revenues. Now there is an even greater need to identify unprofitable inventory and reduce or even eliminate its carrying costs.

Our GPS Inventory Bank programs will provide these cost reductions while still retaining line item availability for your future customer support requirements.

 

ARE SLOW MOVING PARTS EATING UP YOUR PROFITS?

Our GPS Inventory Bank programs store, manage and distribute excess and slower moving parts

Retain Ownership or Write-off the Inventory Provides Long Term Customer Support Create/Reduce needed warehouse space Reduce Costs - Increase Profits!

FLEX SPACE WAREHOUSING

Long or Short Term

Pallet Space or Floor Space Available Pick - Pack - Ship Services

We also provide Order Fufillment Services and other specialty services

FOR MORE INFORMATION SIMPLY CALL (800) 896-0477

The Problem: The High Cost of Slow Moving Inventory

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:

1. Greatly reduced or eliminated inventory carrying costs
2. Free up space in your facilities
3. No need to seek out space and set up operations to house slow moving inventory
4. No more committee meetings trying to guess what to keep and what to purge
5. No interruption to long term customer service
6. No resourcing items at a one off inflated price that you purged last year
7. Maintain your prices without inflation
8. Maintain gross profits without reductions
9. Reduce or eliminate production interruption for items needed in the field
10. Protect your inventory from the surplus market
11. 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  

 Email: programs@gpsinventorysolutions.com
Website: www.gpsinventorysolutions.com

SLOW MOVING SPARE PARTS MANAGEMENT CREATES SAVINGS AND IMPROVED EFFICIENCIES

Our GPS Inventory Bank Programs take the guesswork and costs out of physically managing excess and slow moving production spare parts.

We are experts in physically managing Slow Moving and Excess Production Spare Parts that have costly unpredictable sporadic usage.

Depositing your production spare parts into our Spares Inventory Bank:

• Ensures that you maintain high levels of production output
• Reduces downtime
• Decreases your inventory investment
• Reduces or eliminates carrying costs
• Frees up working capital
• Increases your operating profits
• Creates more available warehouse space

Using our long term Spares Inventory Bank programs will provide continued significant cost reductions and improved performance year after year.

Our Spares Inventory Bank accepts slow moving and excess:

• Semi-finished parts
• Finished parts
• Direct inventory
• Indirect inventory
• Front-End spares
• Back-End spares

Let us show you the many benefits of using our cost effective long term planned program.

Contact a GPS Inventory Bank representative today (800) 896-0477

www.gpsinventorysolutions.com   Email: programs@gpsinventorysolutions.com

HAI HELI-EXPO Slow Moving Helicopter Parts Solutions

GPS Inventory Solutions exhibited at the 2017 HAI HELI-EXPO in March of this year. The Expo was located in Dallas, TX at the Kay Bailey Hutchison Convention Center with record crowds. GPS was there to promote its GPS Inventory Bank program for excess and slow moving parts. Many attendees stopped by the GPS booth to learn more about how they could reduce or eliminate their inventory carrying costs and increase corporate profits. For more information about GPS Inventory Bank programs, visit us at www.gpsinventorysolutions.com or call (800) 896-0477.

Manufacturer Selects GPS Proven Cost Effective Exit Strategy for Slow Moving Inventory

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.

How a $10 Billion Manufacturer turn their Unprofitable Inventory into Profits

GPS Customer Case Study: 

 
How a $10 Billion Manufacturer turn their Unprofitable Inventory into Profits

A $10 billion industrial equipment manufacturer recognized they had an inventory problem:  Too much inventory!  Finance launched an urgent initiative to reduce inventory.

Sales & Customer Service pleaded their case and demanded they maintain the entire inventory, especially service parts, as it was necessary to providing immediate support for their products in the field and customer satisfaction. They believed this justified the buildup of their overall inventory, the increased need for warehouse space, and their skyrocketed overhead costs, which all tied up their valuable working capital.

An analysis of the inventory identified a significant amount of excess and slow moving parts that had sporadic, unpredictable usage but its carrying costs outweighed any future sales or cost benefits.  These slow moving parts were also dragging down their very important overall inventory turns.

One of their previous reduction solutions was to sell it on the surplus market which still left them with a lot of residue.  Items sold into the surplus market at cost or below often ended up competing against them, or even worse, their customers!  They also found items were showing up in their customer returns for full credit. 

Their other option was to send the slow moving inventory to the scrap yard but this only provided a short term result. Besides, it was a painstaking effort to determine what to scrap and what to keep. Often within days of disposing of the inventory they ended up having a customer demand. This demand forced them to repurchase the items, usually at higher prices, with long lead times and minimum order requirements which created more slow moving inventory.

GPS Inventory Solutions was called in to help organize and optimize their inventory reduction initiatives.  Our profit driven GPS Inventory Bank programs offered them cost effective solutions that reduced or eliminated their overhead and inventory costs and had a positive impact on profits and shareholder value. 

Additionally, they retained immediate availability of the items so they could continue to provide a high level of product support to their customers.

Over a four year period of time by using the GPS Inventory Bank Program our customer:

• Reduced their inventory by $24 million and avoided over $21 million in inventory carrying costs
• Retained availability to satisfy 5,576 customer line item demands amounting to $5 million (at cost) of inventory activity for profitable customer sales 
• Protected their brand and market integrity
• Provided immediate item availability for long term product support
• Freed up valuable warehouse locations and working capital
• Improved workforce efficiency
• Improved cash flows
• Increased profits and shareholder value

Now that our customer has a proven cost effective exit strategy in place for their entire excess and slow moving inventory, they are no longer spending countless hours and multiple meetings trying to decide what to do every year.  Today they can use these resources to better focus on managing their profitable active inventory or other corporate initiatives.


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.

Too Much Inventory – Not Enough Space

GPS CUSTOMER CASE STUDY: 

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 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.

Increase Your Profits by Reducing Your Inventory Carrying Costs

What is the GPS Inventory Bank?

It’s not JUST Inventory Management.

It’s all about INCREASING YOUR PROFITS and SHAREHOLDER VALUE!  

And, one of the easiest ways to increase your profits is to reduce your inventory carrying costs.

At GPS Inventory Solutions, we focus on significantly reducing or completely eliminating your costs of carrying excess and slow moving inventory WITHOUT impacting your customer service or sales.

Many companies like yours use our proven Inventory Bank programs daily to manage their slower moving inventory for several reasons.  Some want (or need) to get the inventory off of their books, but also realize that they need to retain item availability so they can continue to provide long term product support to their customers.

Some need additional warehouse space and find that sending their slower moving parts to one of our Inventory Bank programs frees up the space needed. Plus, once again, they still have access to these parts to continue providing high level customer service.

Others are just trying to reduce brick and mortar warehouse and overhead costs. By using our Inventory Bank programs, they are able to reduce their space requirements, or even completely vacate a facility.

Even companies that are using a 3PL for their warehousing and distribution functions have realized that they only transferred their costly slow moving inventory to a third party – they didn’t solve the problem or eliminate its cost to maintain it.   

Our programs are based upon the 80/20 principle. We target the bottom 60% of a typical inventory that usually provides only 5% of the total annual activity. While this inventory has little activity, it still incurs 60% of your overall carrying costs, and eats away at the profits of your active inventory!

In a brief meeting we can demonstrate why using our Inventory Bank programs for managing your slow moving inventory is so important for your long term customer service, sales, and operating profits.

For more information, visit our website at www.gpsinventorysolutions.com

To schedule a demonstration of our programs, contact us at (800) 896-0477 or email us at programs@gpsinventorysolutions.com

How to eliminate carrying costs to increase profitability

Imagine that this is your warehouse full of inventory.

If you view a typical Inventory using the standard 80 20 Rule, you can easily break it down into five 20% increments:

The first 20% increment are your top sellers that account for 82.7% of your sales activity
and the second 20% accounts for 11.75%of your sales activity. Together, the top selling 40% of your inventory accounts for 94.45% of total sales!

 Now look at the next three increments of inventory:

The third 20% only accounts for 2.3%.
Fourth                                          1.85%
Fifth                                             1.40%

Together, the bottom 60% of your inventory accounts for ONLY 5.55% of sales activity!!  And, the cost of carrying this bottom 60% outweighs its profits, and eats away at the profits of the top 40%

But, what if you could move all of this bottom 60% of your inventory over to the GPS Inventory Bank?

It could completely eliminate your inventory carrying costs! Carrying Costs average 25% or more per year. And you would have immediate availability to any item needed for future customer service or production demands. Plus your market and brand integrity is always safe with GPS!

What would this do for your company?

Reduction of inventory and its annual carrying costs = Increased Profits and Improved Cash Flows
And what can you do with all of this freed up warehouse space?  Add new and more profitable products? Open up space for new production?  Reduce your building footprint?

Whether you are ready to write off inventory and get out of your facility, or you just need to free up valuable warehouse space, GPS has a solution for you!

Reducing inventory carrying costs on slow moving inventory is the fastest way to increase your profits!

Did you know that the top 40% of an average inventory accounts for almost 95% of your sales activity?  But, the bottom 60% of this same inventory accounts for only about 5% of your sales activity?

With inventory carrying costs averaging about 25% annually, it costs a lot to carry this 60% just to get 5% sales! Plus, these costs eat away at your profits from the top 40% and your bottom line.

However, there is still value in this bottom 60%.  Over 50% of these items will have activity over the next 10 years.  Due to the random usage of the items, you just don’t know which ones will be needed or when they will be needed.

Using our GPS Inventory Bank programs will eliminate as much of your inventory carrying costs as possible while keeping this slow moving inventory available for future customer service needs.  Visit us at www.gpsinventorysolutions.com or call (800) 896-0477 for more information.

Remember: Reduce Inventory to improve cash flows and ultimately increase your profits!

The easiest way to increase your profits is to reduce your inventory!

Are you tired of slow moving inventory eating away at your profits?  The easiest way to increase your profits is to reduce your inventory!

You cannot afford to hold onto excess and slow moving inventory because its carrying costs average 25% or more per year!  And, it’s probably taking up valuable warehouse space too – space that could be used for more productive inventory.

Should you surplus it?  You may get a minimal return on this inventory but is that worth having it out in the surplus market possibly competing against you, or worse, your CUSTOMERS??

Or just scrap it?  You don’t need to destroy your best possible level of shelf availability by scrapping it.

The day that you scrap or surplus this inventory is the day that your customer will need it! If it is not available for future demands, you will recreate more excess of the same items that you just scrapped or sold as surplus for pennies on the dollar.

YOU CAN’T AFFORD TO KEEP IT, BUT YOU NEED IT!  What is the solution?

Try our GPS INVENTORY BANK programs to:

• Eliminate inventory carrying costs that average 25% or more EACH YEAR
• Free up warehouse space
• Provide 24/7 availability for exceptional customer service
• Free up cash flows
• Retain availability for long term product support
• Increase your profits!

For more information contact us at (800) 896-0477 or visit our website at www.gpsinventorysolutions.com

COMMON MISTAKES WHEN DEALING WITH SLOW MOVING AND EXCESS INVENTORY

When inventory is recognized as slow moving, everyone in the corporation wants to weigh in on the situation. Some will say “there is someone out there that wants it and will pay good money for it”… but not really. Super salesman Dave will say “let me have at it. I can sell it. I know someone”. But it is like the tire advertisements, if you don’t need tires, it doesn’t make any difference what the price is.

Generally, slow moving inventory doesn’t become slow moving because of poor inventory management. It usually happens because the end product it was designed for has aged and the field population and requirement has diminished. Today’s systems don’t track inventory demand by the population of the end product. Therefore, the system will leave you with inventory based on what has happened rather than what is happening because this demand and inventory can’t be forecasted.

Whatever the reason, you now have this inventory and a decision needs to be made. It makes your financial statements look bad; it’s taking up space in the warehouse and probably affecting corporate incentive programs. No one person wants to make the final decision, so a committee develops and studies the problem for months. And…they often never make a decision. And…the inventory just sits there costing more money, eating away at your profits!

Here are some things you don’t want to do.

Don’t let it collect dust  

This is an expensive option that destroys your operating profits. Don’t let it collect dust in your high volume, high velocity distribution system and warehouse. That dust gets more expensive by the day. You investment in this inventory keeps growing because of the ongoing inventory carrying cost. You need to reduce or eliminate this hidden cost.

Don’t go to the surplus market

The surplus market will give you cents on the dollar which may seem great if you haven’t been a student of how the surplus market actually operates. If the surplus market is interested in your inventory, it is because they know more about your product than you do. They know they can buy from you at cents on the dollar, cherry pick the inventory and sell it to your distribution channels or their competitors at a discount off of dealer net. Not only does this mess up your customer image and destroy the association with your distribution channels, it often will come back to you in dealer returns.

Don’t bite the bullet and scrap the inventory

Out of frustration, lack of time and resources some companies will say “to heck with it.” After months of review by the many departments within the company, no one can agree on what can be scrapped and what should be kept. The write off will be larger than corporate wants to take, so a dollar amount is set that won’t destroy the profits, incentive programs, and the employment of some departmental managers. After all of this you haven’t resolved the long term problem.  And even worse, next year it starts all over again! You end up making an even larger investment into Inventory that really just needs to be managed cost effectively.

Here is what you should do

The best practice for maximizing your return is to utilize the services of a company that is an expert in physically managing slow moving Inventory.  One that will maximize your customer service level and profits, while reducing or completely eliminating your cost of keeping this Inventory available.

GPS Inventory Solutions provides a long range plan for managing excess and slow moving Inventory that will satisfy your department heads and corporate office.  GPS Inventory Bank programs provide the only true long range Exit Strategy for your Inventory that is cost effective every year.

Just because an Inventory doesn’t meet your turnover and ROI objectives, it still plays an important role for the company. There is still a market in your customer base, all be it small in volume and unpredictable. For those of us who track this type of Inventory, the history shows that 50% of a slow moving Inventory will have a demand of 5-6% annually, and over time, 50% of the items will be needed for customer service requirements.

Typically this Inventory will have been depreciated over a specific time period until it is ultimately written off. When you start your depreciation process you should also start reducing your operating cost of keeping this Inventory available for the future unpredictable requirement.

GPS Inventory Solutions offers different options depending on whether you are ready to write it off or want to still retain ownership of the Inventory.  Our programs take over the storage, management and distribution of these products which significantly reduces or completely eliminates your carrying costs.

Using GPS Inventory Solutions and its Inventory Bank programs will maximize your profits and enhance your customer satisfaction.  Contact GPS Inventory Solutions for a FREE Inventory Analysis and customized long range management plan for your excess and slow moving Inventory.

For more information contact GPS at www.gpsinventorysolutions.com or (800) 896-0477

Support for our Community

GPS Inventory Solutions is proud to support The Stewpot. The Stewpot offers a safe haven for homeless and at-risk individuals of Dallas, providing resources for basic survival needs as well as opportunities to start a new life. Since May 2008, The Stewpot has been the sole meal provider at The Bridge (Dallas' homeless assistance center), serving 1,500-2,000 meals per day, 7 days a week. Join us in supporting this worthy effort at www.thestewpot.org

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GPS Inventory Solutions is proud to support the National Parkinson Foundation. The Center for Disease control rated complication from Parkinson's disease as the 14th leading cause of death in the United States. Worldwide, it is estimated that four to six million people suffer from the condition. Support research for a cure. Donate at www.parkinsons.org

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GPS Inventory Solutions is proud to support Texas Scottish Rite Hospital for Children. TSRHC treats children with orthopedic conditions, such as scoliosis, clubfoot, hand disorder, hip disorder, and limb length differences, as well as certain related neurological disorder and learning disorders, such as dyslexia. TSRHC is not a United Way agency and does not receive state or federal funding. The hospital relies on the generosity of individuals, organizations, foundations, and corporations to continue its missions. Join us in supporting them at www.tsrhc.org

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GPS Inventory Solutions is proud to support the Semper FI Fund. The needs of our wounded continue to grow. Many service members will need long-term assistance as they adjust to lives that are forever changed due to the extent of their injuries. Every donation, both large and small, from corporate gifts to individual contributions, does make a difference. Join us in supporting them at www.semperfifund.org

The CFO’s New Approach to Managing Slow Moving Unpredictable Demand Inventory

How many times have you established a task force to evaluate and reduce inventory? Whether you were looking for space, improved cash flow, cost reductions, efficiency, or cost avoidance, the inventory issues were the same.
How do you get to the proper financial inventory level without interrupting customer service and losing profits on future sales?

Read More: Managing Slow Moving Unpredictable Demand Inventory

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.

http://www.gpspartsmart.com

Crossword Puzzle for Inventory Managers

 
Across 
2. Free up warehouse space but keep parts availability with an "inventory _________."
4. GPSpartsmart.com provides "inventory ____________."
5. Abbreviation for obsolete, and slow moving inventory.
Down 
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

Aerospace OEM slow moving inventory solution case study

GPS INVENTORY BANK PROGRAMS ELIMINATE INVENTORY CARRYING COST WITHOUt SACRIFICING CUSTOMER SERVICE, SALES OR PROFITS.

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.

Web: www.gpspartsmart.com

Email: Inventory Management Programs   Programs@gpspartsmart.com

Phone 1 800 896 0477