Excess Inventory – A Common Waste Challenge

Excess INVENTORY is a common waste challenge for many steel businesses and tends to hide problems on the workshop floor, which must be identified and resolved in order to improve operating performance. By achieving a seamless flow between machines and production lines, many steel businesses involved in manufacturing, fabrication and building have been able to improve customer service and reduce inventory and associated costs.

The Steel Efficiency Review® process recommends operations and productions teams to make what the customer wants when they want it, pulling only what is ordered through your work flow. Excess INVENTORY causes increases in direct physical costs and indirect costs such as the transportation and movement of this inventory, the space required to store it, the administration of keeping track of it, the damage and losses that can occur, the cost of writing off materials that become obsolete, even the costs of insuring it.

Utilising the Steel Efficiency Review® our SER® consultants have recommended the following 3 key value proposition solutions to help access the right stock at the right time:

1. 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.

2. 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.

3. 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.

In implementing these value proposition solutions, our customers will access the right stock at the right time. 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. To register for your own FREE Steel Efficiency Review® click here.