Insight

The Problem: Inaccurate Perpetual Inventory Perpetuates Costly Errors

How accurate is your perpetual inventory? Is that acceptable? It is likely less acceptable than you think. This filtration manufacturer understood the excess costs created by errant assembly, order processing and purchasing. The engagement started as a warehouse system package selection.

They believed the inaccuracies were system errors. As soon as we begin to look under the covers of inventory inaccuracies at any company it resembles the opening of Pandora's box. There is an ancient saying; "purification leads to progress".

The Approach: Implement Best Practices: Improved Inventory Procedures, Physical Inventory and Cycle Counts

Inventory adjustments as well as receiving, put-away and picking problems are, for the most part, symptoms to deeper inventory control issues. Companies often blame inventory applications for inaccuracies. In fact, when we looked at this manufacturer, the problems were most often caused by work-flow processes on the assembly line and in the warehouse.

Pick shelf of pipes in warehouseAfter an assessment of inventory processes throughout assembly and the warehouse we found little wrong with the system. It was in need of a few enhancements but didn't require replacement. We enhanced several operational processes resulting in significant reductions in trouble tickets in picking, receiving and put-away.

The Benefits:

Significant room for growth was created simply by improving processes which in turn reduced costs from the frequent problems being created by inaccurate inventory. Reduced labor costs allowed the business to take on more orders without increased labor. Thus boosting profits.

Inventory purification leads to progress.

Fairfield Professionals is a boutique consulting firm specializing in the food safety, consumer products and healthcare industries. Fairfield's services include business intelligence, user experience research and design, product management, project management, process improvement and software selection and implementation.

Business Intelligence

Business data organized, analyzed, and presented strategically helping managers to make intelligent decisions faster.

User Experience Design

Making computer interfaces easy-to-use and fast to learn.  Reducing costs, speeding adoption and increasing conversion rates.

Product Management

Building and marketing technology products that people love supported by market and data driven organization and processes.

Project Management

Initiate, plan, execute, control, and close the work of a team to achieve specific goals within given constraints.

Process Improvement

Reducing costs and preparing for growth by identifying and implementing blue collar and white collar improvements.

Selection & Implementation

Needs analysis through roll-out. ERP, warehouse, order processing, order entry, fulfillment, retail, merchandising.

Go to top