With all the hurdles placed before manufacturers today to compete in the global economy (governmental, competitive, environmental, etc.), the last thing a company needs is to do the sort of actions on its own that work against the operation.
Yet, this happens everyday when excess or obsolete inventory write-offs occur. These costly supply-chain problems result in the unnecessary fraying of bottom-line profits due to wasted materials, wasted time, and wasted opportunities to move parts/products out of the shop before they reach the end of their usefulness for a customer.
However, the cause for these manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, (more…)