WAREHOUSE SPACE 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.
Our SER® consultants have recommended the following 3 key value proposition solutions to help SAVE ON WAREHOUSE SPACE:
- LAYOUT AND FLOW IMPROVEMENTS TO ELIMINATE BOTTLENECKS
Warehouse layout and flow needs to be balanced to help ensure production processes work in sync to not unnecessarily build up stock. It is not important to run every machine as fast as it can be run to make things as quickly as the customer wants them, no faster. A Kanban system or a JIT (Just In Time) delivery approach can be used to help ensure processes are balanced to prevent the build up of inventory – this may help save warehouse space and reduce working capital.
- ABILITY TO SOURCE HIGH QUALITY RAW MATERIALS (SEMI-FINISHED)
By making end products with semi-finished feedstock, working capital and warehouse space can be reduced significantly. This could allow steel businesses involved in manufacturing, fabrication and building to remove the main cause of excess inventory, motion and transport. Working with high quality semi-finished material may enable stock to be produced quickly – removing non-value added processes. This requires trust in customer requirement and correct forecasting.
- OPTIMISATION OF FEED MATERIAL
By investing is smaller material deliveries and providing for quicker lead times where possible; creating optimal coil sizes, pack sizes and packaging – will help towards reducing working capital. By dealing with a reputable supplier will help take the pressure of your workers to make the right decisions for both your business and customer. This may help save on warehouse space – optimising feedstock as needed. Another approach may be to look at Consignment Stock or Customer Specific Stock stored at your suppliers premises and delivered only as needed.
We have found, our customers pursue the SER® as a vehicle to look at their business in a different way to make some small changes to reap big rewards. The Steel Efficiency Review® aims to provide recommendations to support our customer’s business and at the same time improve our product and service offer.
To register for the Steel Efficiency Review® click here.