Tag Archive: quality

Solid Inventory Management Practices Remain Timeless

July 12th, 2016
inventory management

Are you keeping close tabs on your inventory management practices? Improving just one aspect of your inventory can lead to improved service, margins and cash flow.

Inventory management remains a timeless and vital topic for success. Every so often, we get away from talking about it on a consistent basis because it seems somewhat humdrum. But it isn’t!

 

Earlier this year, I was asked to speak to a group of manufacturing leaders about it because of the ongoing importance. Then, I was asked to speak to a group of quality experts on the topic as it not only is timeless but it also crosses boundaries. Next, a peer group of manufacturing leaders asked me to speak on the topic. I didn’t have to be a rocket scientist to realize the importance of inventory to company performance, executives and supply chain leaders.

It started me thinking…. Banking executives understand the critical importance and frequently refer clients for any number of inventory-related needs: how to bring inventory levels down to free up cash, how to bring inventory accuracy levels up to safeguard assets and customer service, how to implement the appropriate protocols to maintain compliance and how to improve inventory processes to increase margins. Executives call about inventory-related topics quite frequently. Boards make it a priority. For example, corporate of one of my current clients (a facility of a multi-billion-dollar aerospace manufacturing company) has made it a top priority. Certainly none of these people think it is humdrum!

 

Are you leaving your inventory processes to an analyst on his/her own? Shouldn’t you be asking questions and expressing interest in the metrics? Do you know what’s going on with inventory on a weekly basis? We’ve been consulting for over 11 years as of last month, and 95%+ of our clients asked for or ended up requesting support to improve some aspect of their inventory. It does seem to be a no-brainer since it is a great way to make quick progress with and improve service, margins and cash flow  


Our marketing colleagues call these sorts of timeless topics “evergreen”. Think about all the impacts to your business stemming from inventory. We have no doubt it will spur you to go ask a few questions at a minimum. As this is one of our strongest areas of expertise and we enjoy seeing the deep impact and benefits to businesses, we have decided to offer a summer 2016 special (July & August) for Profit through People newsletter subscribers – a Rapid Inventory Management Assessment for $5000. To sweeten the deal (as we prefer to ensure results follow), we’ll rebate this assessment fee against any resulting (follow-on) inventory projects. If you are interested in getting started,
contact us.  

Did you like this article? Continue reading on how to be the Strongest Link in your organization:

Is Your Inventory System Working?

Is Your Supply Chain Ready for Growth?

 



McDonald’s Proves Quality Must Be An Assumption

August 11th, 2014

supply chain

According to today’s Wall Street Journal, McDonald’s July sales were DOWN by 2.5% – the worst in over 10 years! A significant contributor to this weak performance was due to the meat-supplier scandal in China affecting its sales in Asia and Africa.  As businesses try to find ways to grow sales in today’s highly competitive environment, fundamentals must remain in place to ensure quality and service.  What could be worse than finally achieving some success with organic growth to have it squashed by quality concerns? (In McDonald’s case, meat expiration date concerns..) Once customers leave, they are far less likely to return.

One tip to implement this week: Check in on your fundamentals.  Typically we are buried in day-to-day survival – managing projects, resolving problems, handling customer questions, preparing for Board meetings and the like.  Instead, set aside time (which you consider to be as important as your top customer, CEO or Board member calling with an urgent priority) to take a pulse on your fundamentals.  Go to Customer Service and Shipping, and ask about customers and service.  Go by a the production line and ask questions about quality.  Pick up your phone to call a key supplier.  Talk with your informal leaders and find out what’s on their mind.  Take stock of your fundamentals and address any potential risks uncovered.  If you don’t, you’ll wish you had as they surface from your customers instead!