Inventory Consolidation


Are you looking for help consolidating suppliers and items?  Wondering where to start to reduce your on-hand inventory, improve your in-stock position, and improve replenishment?

Product complexity and product/stock-keeping unit (SKU) proliferation reduce the efficiency and effectiveness of a company's overall supply chain. Product complexity and proliferation impact 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 obsolescence tied directly to inventory reduction
  • Reduction in logistics costs due to reduction is 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) leading to an improved cash flow position or better return on assets for the company
  • 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