Inventory Consolidation

Inventory Centralisation
Inventory Centralisation

Centralising inventory distribution can be one of the better strategies to reduce inventory investment for your organisation. Based on our experience we have implemented a number of proven strategies for reducing working and non working inventory.

Inventory Consolidation | Inventory Management

Listed below are successful strategies that we have implemented for some of our clients as part of their inventory reduction programs. A Turn Key Solution presents these inventory reduction strategies as a guideline, some can be implemented very quickly while others need the proper level of assessment and analysis to ensure that the level of reduction is realistic without compromising existing service levels.

Inventory planning

  • Managing inventory postponement, where the final product is made up of components or sub-assemblies that don't form part of the finished good.
  • Using forecast demand or sales history,  constantly review the stock profile using the agreed buying terms to manage out slow moving inventory.
  • Work on reducing demand variations will allowplanners tomanually release work orders for finished goods periodically as a make to order policy.
  • Constantly monitor inventory performance and delist the "Dog" types which are not turning and using up space.
  • Moitoring the lead time variances of imported products to manageable levels without draining the supply channel.
  • Establish upper and lower leadtime threshold control limits and work within these parameters for air,sea and cross dock consignments.
  • Re-evaluate the planning settings in your ERP system,  as the initial implementation settings have not changed for safety stock and safety time.
  • Cleanse planning settings to ensure that only a single trigger point works for your planning process i.e. safety time as days or safety stock, not both.
  • Inventory rationalisation using multiple datasets such as GM, sales volume and EBIT to keep or delete from inventory product range.

supply chain footprint

  • Cross docking shipments direct to your customers avoids inventory holding costs and reduces most warehouse processing costs. This would apply to either make to order or make to stock inventory policies.
  • Assess the use of storage modules within your warehouse to determine if space is being fully utilised for static storage, namely pallets, pick locations, tote bays and shelving. By changing the type of MH equipment used, aisles can be truncated to allow for greater space utilisation. Ensure that all costs are taken into account prior to changing rack positions or leasing new MHE.
  • Close satellite warehouses and centralise distribution where possible. The trade-off between inventory level and cost of distribution needs to be established prior to any decision to close sites.
  • A Warehouse sale can bean effective way of depleting or removing stock when the establishment costs are lower than the recovery cost.

Next Steps:

A Turn Key Solution offers your organisation the same opportunities to improve the health and direction of your supply chain, logistics function or warehouse operations.We provide supply chain assessment modules, process simulation, warehouse automation, business integration and quality supply chain resources for project management or interim support to build a sustainable supply chain for your organisation.

Supply Chain Assessment Modules

Select from our range of supply chain assessments and take the opportunity to validate your supply chain and logistics processes, practices, metrics and technology systems. We offer flexibility with our modular approach, content area focus at the right cost for your business. Our supply chain consultants, logistics consultants and warehouse consultants are experienced and will work through these assessments at your pace.

  1. Supply Chain Strategy Assessment (Develop a supply chain strategy that balances cost, service and efficiency within a dynamic market place)
  2. Supply Chain Planning Assessment (Sales forecasting, planning and execution for managing inventory investment for the business)
  3. Inventory Management Assessment (Manage inventory investment with the right tools and controls within your warehouse or distribution centre)
  4. Warehouse Management Assessment (Warehouse operation can increase throughput and efficiency with the right layout, storage and processes)
  5. Performance Measurement KPI Assessment (Supply chain capability increases with regular performance measurement focussed on the right areas)
  6. 3PL Outsourcing Assessment (Moving to an outsourced 3PL is a significant step & requires careful consideration, planning and implementation)
  7. Supply Chain Technology Assessment (The right supply chain technology mix will drive performance across the core areas of your supply chain)

Process Simulation

Our supply chain consulting practice uses advanced 2D or 3D simulation modelling tool's to provide our clients with the latest process based integrated solutions to improve supply chain performance in real-time, identifying issues and bottlenecks within a virtual environment. Take a look at our supply chain simulation, logistics simulation, warehouse simulation and distribution network model.

Quick process wins are delivered much faster, while structural supply chain changes require capital investment in warehouse automation and distribution solutions for your operation. Advanced supply chain optimisation is the aim by integrating ERP, WMS or Manufacturing systems to achieve real time visibility.

Warehouse Automation

Supported by a strong industry specialist network, we are able to meet the supply chain challenges your company is facing today. Strengthen your supply chain, distribution centre, warehouse or manufacturing facility with integrated warehouse automation systems and distribution solutions. Custom made materials handling, storage and retrieval systems range include: Conveyors, Fulfillment, Robotics, Packaging, Sortation, Shipping Systems, Software and safety equipment. 

We also offer a comprehensive review of your warehouse operation to make sure that the right solution is identified, planned and implemented. Depending upon the outcome of the review, we also offer a range of services that support the final automation solution, namely: a warehouse layout and design service, warehouse process modifications, warehouse systems or a warehouse layout design for a specific area.

Business Integration and Consolidation

We assist organisations to create a "Right Sized Supply Chain Model" for their business. This may involve consolidating your supply chain network, merging multiple businesses, establishing a new warehouse facility or assessing 3PL viability and outsourcing options. Our experienced has contributed to delivering a range of quality supply chain solutions for our customers.

Project management | Interim management support

We provide a project management service or interim management support to assist any supply chain initiative. Qualified and experienced supply chain managers, warehouse managers, distribution centre managers and project managers are available to meet your interim project requirement needs or long term resource placement strategy.


Next Steps:

Feel free to contact our office for advice or to discuss any specific project requirements.