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This chart shows the actual results of carefully adjusting purchasing system settings.
I worked with the system rather than working around it. I monitored progress over a year. The result of changes
I implemented was $2,500,000 of inventory reduction and a 1/2% improvement in fill rate. Most companies have purchased software to help manage inventory.
If the parameters and set points in the software are not aligned with your business goals and your market, you may experience inventory creep, even as sales remain flat or decrease.
This national distributor’s mushrooming inventory was caused by seasonal buying, incorrect parameters, and manual processes. The client was in danger of running out of cash due to their inventory buildup. After carefully
but quickly analyzing the inventory growth patterns and reasons,
I identified several areas of potential improvement. Together, we set specific, measurable goals. We
set timelines for inventory reduction. We set specific targets for customer service. We made adjustments in software and in procedures. We communicated everything clearly to the employees. We put the plan into action. Then we measured and posted progress, for all to see.
There were many details involved that needed attention and alignment to result in the performance chart above. $2,500,000 is not an insignificant number. You have challenges unique to your
company and your market. I listen to you and address your unique
situation. I'm specific and I bottom-line focused. There are many challenges
in business. It can be a complex, daunting task. Not with Profit Hound.
I love the challenge and I love details!
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