Operationally, excess and obsolete inventory items generate little interest because they do not create emergencies and so few companies pay much attention to this inventory unless or until they undertake a specific program of review. In the normal day-to-day management these inventory items are mostly ignored and the focus tends
Inventory Optimization Actions for Spare Parts
This post is set up as a portal to the series of items relating to the Inventory Cash Release Process. This process is specifically designed to assist companies managing spare parts with inventory optimization and reduction. The Inventory Cash Release (ICR®) Process, is a structured step-by-step inventory optimization technique that
Spare Parts Inventory Goals: One Tip to Achieve Them
When going through their budgeting process it is common for companies to set new spare parts inventory goals for the year or to at least review their existing goals. However, when they do this many companies are setting themselves up for failure. Let me explain that. Spare
Spare Parts Inventory Reduction: Russell Thompson Tells How SparePartsKnowHow.com Helped Him Achieve a 50% Inventory Reduction
In October 2011 Russell Thompson, Corporate MRO/Purchasing Manager at Idahoan Foods in the USA joined SparePartsKnowHow.com as a Member. In the time since then Mr. Thompson has used the resources at SparePartsKnowHow.com to achieve a 50% spare parts inventory reduction. In this extract from a recent interview he tells
Inventory Reduction Action #1: Have Someone Else Hold and/or Pay For Inventory
The best way to reduce the investment in inventory is to eliminate the investment altogether. This inventory reduction action can be achieved without risk and with full access to the inventory by having someone else hold and/or pay for the inventory. This approach, sometimes known as consignment stocking, transfers both
The Inventory Cash Release® Process – A Step By Step Guide
First – Download the Flowchart To help you follow this explanation of the basic framework I have set up a flow chart for you to download. You can do that here: ICRFlowChart. The following descriptions refer to that chart. The Inventory Cash Release® Process
The Inventory Cash Release® Process
[grwebform url=”https://app.getresponse.com/view_webform_v2.js?u=uY&webforms_id=14719202″ css=”on” center=”off” center_margin=”200″/] Over the years this blog has explored many aspects of spare parts inventory management and usually there is a little feedback on each article. But when I recently mentioned in one article the 7 Actions for Inventory Reduction the response was unprecedented. Apparently many readers hadn’t heard of this approach
Inventory Reduction: Why 30% is Easier to Achieve than 3%
[grwebform url=”https://app.getresponse.com/view_webform_v2.js?u=uY&webforms_id=14719202″ css=”on” center=”off” center_margin=”200″/] Here is something to think about: it is easier for companies to achieve a 30% inventory reduction than a 3% reduction. I know that this statement is counter-intuitive so you may be saying to yourself: How can that be, surely achieving a lower target is easier than achieving a higher
A New, Simple ReOrder Point Calculator
One question that people ask me regularly is: how do we access a simple reorder point calculator for the ROP for spare parts when our data is inadequate or unreliable? Well, now we have a way to do just that! For access to this post, and all of our content,
Why Spare Parts are Different to Other Inventory Types
In October 2012 Phillip Slater was interviewed by Dustin Mattison for the Kinaxis Supply Chain Expert website. In this interview Phillip discusses why spare parts are different to other inventory types and what this means for those that manage spare parts inventory. For access to this post, and all of