Making a Case for Shedding Excess Inventory in the Distribution Center or Warehouse
Consultant Fred Kimball shows readers how to convince executive management to clean house.
(Boonton, NJ, July 11, 2012) The number-one reason DC management contacts a consultant for assistance is space, or more accurately, the lack of space, says Fred Kimball in the July issue of Distribution Center Management.
Kimball, a principal with Distribution Design, notes that it often takes pallets stacked on top of each other in the rack aisles before executive management authorizes a consultant. By then he says, "Productivity has declined, getting the orders shipped on time is more challenging, and people wonder why."
The number-one reason for the shortage of space, says Kimball, is excess inventory. Yet convincing executive management to shed this inventory can be difficult.
The solution is to offer real analytical evidence to explain the problem in ways that encourage executive management to take action. To do this, Kimball recommends five types of reports. These are the velocity profile, inventory by velocity group, zero-ship items, inventory profile, and months of supply on hand.
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For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.