Inventory Management

Overview

Inventory level isn’t the only challenge

The physical cost of inventory and downtime due to unavailability of spares unless managed can be very wasteful! Inventory Management offers the opportunity to achieve the optimum balance between inventory and spares, to maximise the value to the business.

Inventory is a critical part of any manufacturing business, with different departments within the business having different perceptions of how much inventory there should be available. Large volumes of inventory guarantee continued service; minimal inventory reduces working capital, and insufficient materials could limit equipment availability.

But inventory level isn’t the only challenge – inventory must be in the right place, at the right time and in the right quantity or quality. MCP’s inventory management service supports clients to ensure that this vital business requirement is better informed, regularly planned and predicted to meet the needs of the organisation.

Read our article – Inventory Control: Changes in Store

Approach

Be in control

Without a computerised system, control is, at best, just a paper trail usually created by the store person. With stores and supplies now under scrutiny, these manual techniques, invariably offer inaccurate data, are open to interpretation and often based on perception rather than tangible experience.

The solution is inventory optimisation through employing Spares and Materials Management. This can be used to such an extent that, the control of replacement items throughout their life can be comprehensively monitored and controlled by budget holders and the managerial teams.

Spares and Materials Management allows businesses to streamline many of their critical processes, which would otherwise be performed on a decentralised basis. A centralised stock control service will allow the business to meet agreed service level objectives and, crucially, improve service delivery to those reliant these vital spare parts and inventory items.

Benefits

Tailored Inventory Management solutions

Our consultants can provide Inventory Management solutions that are tailored to your organisation’s infrastructure and requirements. Optimising inventory is a continual process: if not undertaken properly opportunities to permanently reduce your stock levels will go unnoticed.

Efficient inventory analysis and a planned process of your operations will allow you to benefit from:

  • Improved customer satisfaction
  • Improved brand image
  • Improved cash flow
  • Increased sales
  • Decreased cycle time
  • Improved profitability
  • Competitive advantage
  • Reduced warehouse footprint and associated costs
  • Reduced provisions for obsolescence

Our proven methodologies optimise the level of inventory against all service criteria, working capital and equipment utilisation. We have considerable knowledge and experience in defining policies, strategies and calculations that can ensure inventory levels are fully optimised, justified and balanced with all the functional needs.

Typically, in a company with around £1million under Spares and Materials Management, adopting current best practices can achieve a reduction in expenditure by £2-300,000 per annum!

Learn how to optimise your level of inventory

To find out more about Inventory Management

+44(0) 121 506 9032 consultancy@mcpeurope.com
Contact Us