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 guides users through the application of different inventory reduction methods to match the method with the characteristics of specific inventory items.
The Process encourages your team to look at inventory optimization from different angles rather than jumping to the first solution that springs to mind. This radically improves the chances of coming up with viable and lasting solutions.
Another advantage of this process is that it engages your team members from different departments. Ideally this will include: maintenance, storeroom/warehouse, procurement, purchasing, finance, planning, supply chain and logistics.
This creates an inventory optimization environment in which individuals learn an appreciation of the perspective of others and often work together to create better solutions that they would if working within their own silo.
Spare Parts Inventory Optimization Actions
The Inventory Cash Release Process
Spare Parts Inventory Reduction and Optimization: A Step-by-Step Approach
Inventory Reduction Action #1: Have Someone Else Hold and/or Pay for Inventory
Inventory Reduction Action #2: Sell Excess and Obsolete Stock
Inventory Reduction Action #3: Eliminate Duplication
Inventory Reduction Action #4: Change the Factors that Drive Safety Stock
Inventory Reduction Action #5: Reduce Spare Parts Reorder Stock
Inventory Reduction Action #6: Match Spare Parts Delivery With Usage
Inventory Reduction Action #7: Reduce the Value of Spare Parts Items Held