This post, Who Owns the Problem, is from our first ever newsletter.
Published in February 2007.
It is re-posted in celebration of our 250th edition.
Inventory Reduction Identified
Recently I worked with an organization to help identify opportunities relating to their indirect inventory.
Specific details about the company aren’t important but I can tell you that an inventory reduction opportunity in the order of $10M was identified. In addition, we agreed that an inventory reduction of this size will also provide a cost reduction in the order of $2M per year.
These numbers were only identified but also agreed to by key senior people in the organization.
So, we now have an agreed problem (overstocking), an agreed solution (the Inventory Cash ReleaseTM Process) and a benefit measured in the tens of millions of dollars. We should now get on with realizing that benefit, right?
Wrong!
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Author: Phillip Slater