Reducing
your inventory value?
There is an adage that 'Inventory is evil' and in electronics,
this is certainly the case.
Whilst it is sensible to benefit from volume pricing, it is unwise to sit on too large a quantity of finished goods as it will impact on your cash flow if they are going to sit in stores for long periods without being utilised.
Other problems arise when a product is up-issued (incrementally improved) and you can face wastage issues due to obsolescence.
So how can you reduce your inventory? Here are some of the ways that Evolution Circuits can assist you:
Shorter lead times can eliminate the necessity to buy forward so
that you can genuinely work a JIT system without risk.
We
can manage stock on either a schedule, kan-ban or even
consignment principal so that the value of goods is sat in our temperature
and humidity controlled stores, not yours
Splitting the manufacturing batches for larger volume requirements can make
sense if the consumption rate of a board spans several months. This also
minimises the risk of obsolescence in the event of design changes.
To find out how we could potentially reduce your inventory value please
contact our Logistics experts on:
Reducing
your inventory value?
