Understanding how much inventory you have on hand
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Too often supply chains are hurt by the ghosts of inventory purchased long ago. It’s sitting on the shelf waiting to be noticed and eventually dealt with. It’s dead stock.
How it went from procured to unused isn’t important. Now, we just want to deal with the dead inventory and avoid bad buys in the future. But how? By understanding how much inventory you have on hand. Let’s run through three common questions to see where you stand with things… How do I get a handle on inventory levels? Don’t tackle this alone! Start by consulting with an expert. Find someone to partner with so that you can leverage their expertise and solutions. They'll help you quantify how much inventory you have on hand. Then, they can assist you in simplifying and monitoring that inventory. 
Why care about on-hand inventory?
By understanding what inventory is available at your site, your partner will be able to help you identify and maintain optimal stocking levels. This will help you reduce inventory levels with confidence while also reducing risk. And depending on the programs that they offer, oftentimes, you'll be able to achieve an increase in productivity through improved organization and even labor gains through automated replenishment. Some additional benefits could also include a reduction in paperwork and administrative cost, as well as the ability to digitally view what you have on hand (by location) throughout your facilities. These are just a few ways how understanding your inventory can positively impact your supply chain. Can I “get ahead” of my inventory? I mentioned consulting with an expert with the goal of developing a partnership to assist you. When doing so, be willing to focus on what I like to refer to as the Three C's (Communication, Commitment, and Continuous Improvement). So, to get ahead of your inventory and for the partnership to be successful, always have a clear and open line of communication. Commit to having a champion within your facility drive this initiative, and finally, understand that it's going to take continuous improvement. Continue to challenge the current state to ensure you are implementing the best and proper solutions to address all your supply chain needs regarding inventory. The takeaway Inventory management is complicated. You can find yourself bouncing between questions like, “How much is too much?” and “Is that even enough?” Having the pulse of your inventory is like having the pulse of your entire workflow. With a partner who can help guide you on the path to inventory awareness, you can find out just how powerful it is to understand what you have on-hand. You may also like:
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If you are interested in engaging with someone to challenge your existing supply chain, just reach out to me at
hhazard@fastenal.com. Like what you're seeing here? Subscribe to the Blue Print for FREE and get the magazine sent right to your address. |
