STOCK ACCESS tends to pose major challenges with steel businesses involved in manufacturing, fabrication and building. Many businesses require the right inventory to meet demanding customer requirements. In the quest to meet these requirements and expectations, stock access is critical. Investing in the right type and amount of stock where possible; ensuring the range and scale works for your business will help meet demanding customer needs and strict project requirements. In addition ensuring cash is optimised and working for your business will allow the right investments in stock, people, processes and equipment.
The Steel Efficiency Review® process recommends operations and productions teams to make what the customer wants when they want it, as specified.
STOCK when not managed effectively can cost steel businesses’ money, time and opportunities to win new work. These costs can amount to a considerable sum over time.
COMMON CAUSES OF STOCK ACCESS ISSUES:
- Inaccurate Information
Working to inaccurate sales forecasts and guessing what customers will want in the future can invariably cause stress to many operational environments. The wrong products can be ordered and produced in excess burning cash and disappointing key customers at the same time. This can sometimes promote excess inventory practices – promoting purchasing and operations teams to build stock buffers. This creates stock access issues with funding not being directed to the right activities.
- Pool Warehouse Layout
Stock issues can also be caused by poor warehouse layout and lack of balance in the workflow – causing the wrong type of inventory to build up before or after different processes. This helps hide stock in each step of the production process. The outcome is not favourable for steel businesses resulting in poor use of cash and exceeding pressure to access the right type of stock.
- Unreliable Legacy Processes
“This is how we have always done it!” is the common cause based on legacy and unreliable systems and processes. We have uncovered unreliable processes are a cause of stock access issues. Unreliable processes cause product quality issues, constant re-work and inefficiencies in production. This all plays a role in accessing the right type of stock.
Our SER® consultants have recommended the following 3 key value proposition solutions to help ACCESS STOCK:
- ACCESS TO HIGH QUALITY BRANDED STEEL PRODUCTS.
Leveraging recognised, reputable and high quality steel products will allow steel business to leverage market awareness to grow market share and increase revenue. Working with a supplier to further promote your products and services into new and existing markets will not only provide access to the right stock but also increase market penetration.
- TIME IN WAITING IMPROVEMENTS TO REDUCE BOTTLENECKS
Simplifying purchasing patterns and systems to allow seamless management to access the right type of stock. Predicting future sales trends and using accurate sales forecasting tools and templates will help improve time in waiting and reduce operational bottlenecks. A workable solution to improve workflow and provide greater access to the right stock.
- ABILITY TO SOURCE HIGH QUALITY RAW MATERIALS (SEMI-FINISHED)
Supporting our customers with semi-finished raw materials so they can concentrate on adding value with a few small steps in their own production line helps decrease labour costs and increase business cash flow when needed the most. A highly workable solution to help with ACCESSING STOCK in any steel business.
As a supplier of steel and aluminium products, we must continue to strive to find a better way with our customers. The Steel Efficiency Review® aims to provide recommendations to change and improve our customer’s business and at the same time our product and service offer.
Download our State of Market Reports for our insights and learnings after completing 1,011 Steel Efficiency Review® consultations on businesses of all shapes and sizes across Australia. To register for your own FREE Steel Efficiency Review® click here.