Inventory management though being practiced in every company, but still faces issues of excess inventory and stock-outs at the same time. It occurs due to Capacity constraints, Quality issues, Layout, Big batches & High changeover time, Minimum order quantity, Ordering & replenishment system, High demand variation due to seasonality or more.
Due to excess or low inventory, there can be substantial increase in costs or can lead to sales losses due to non-availability of right inventory at right time. It becomes very crucial to have Optimum inventory levels based on Production capacity, Market demand, Production Lead time, Supply Variations, Demand variations and Space availability.
RIB consulting with effective Kaizen Inventory models helps understand the actual reasons behind inventory gaps & set right levels of production & stock that is:
What to keep in stock and
How much to keep in stock
Where & How to Keep
What & When to produce
How much to produce
We work on 3 key strategies for inventory management to achieve goals of optimum inventory with zero stock outs.
Planning Strategy: As a first step, we analyse SKU wise sales to decide Make to Stock and Make to Order items. We also analyse Sales growth trend, forecasts, lead time to produce and scientifically calculate supply & demand variations based on desired service levels.
Capacity Planning: To ensure effective capacity utilisation and to meet demand, the existing capacities, Downtimes, Changeover times, Rejection & minimum batches for each Stock-keeping unit are being analysed by us.
Execution Planning: To ensure right items are replenished at the right time based on priority of item and stock levels, we use Color coding system resulting to zero stock outs with optimum inventory levels.
We bring in expertise to set customised Kaizen inventory management system for:
Raw Material (Locally purchased & imported)
Strategic Standard Work In Progress between the processes
Packaging materials (Locally purchased & Imported)
Spare Parts for equipment
Our clients with Kaizen Inventory Management has been able to reduce their inventory levels by 30-40% .