Inventory Consolidation

inventory-consolidation-warehouse


Inventory consolidation works to simplify your supply chain, while reducing costs and improving efficiency
 

Product complexity and proliferation reduce the efficiency and effectiveness of a company's overall supply chain. They impact several areas of the organization including: order processing, manufacturing planning and scheduling, purchasing, inventory management, quality, and master data.

Consolidating your vendors can help save you time and money in several ways:

  • Reduced warehousing, cost of capital and inventory reduction
  • Reduction in logistics costs with less small quantity orders
  • Raw material and packaging spend reduction due to consolidation, once again leading to reduced unit cost
  • Improved manufacturing efficiency by reducing changeovers, leading to reduced unit cost
  • Inventory reduction for both finished goods and raw materials (including packaging)
  • Increased forecast accuracy due to an elimination of small unforecastable products
  • Increased margins and business profitability due to the reduction in operations costs
  • Reduced invoicing and A/P costs