What is ROI? and Tell me more about Inventory Banking

ROI means Return on Investment... 

Are you getting your money back out of what you invested into your inventory?

I am sure you are asking yourself that question every time you walk out to your warehouse or product storage area. If you are saying no then allow me to make a suggestion for you to consider.



Have you heard of Inventory Banking?

Using an Inventory Bank provides manufacturers with reduced inventory carrying costs while increasing their available warehouse space for more productive products. 

Increased parts availability through an Inventory Bank enhances Customer Service and provides long term support for your products.

Plus, your brand identity and market integrity is protected by using an Inventory Bank program, unlike surplus outlets. 

Additional Benefits:

• Same Day Shipments Available
• Improve Customer Satisfaction by Increasing Parts Availability
• No Minimum Orders – Buy Only What You Need – When You Need It
• Professional, Friendly Customer Service
• Free Up Resources To Support More Profitable Activities or  New Corporate Initiatives
• Easy to Implement Program
• Possible Tax Benefit Available 
   

Now, ask yourself if the above benefits are something that your company can use?

If you answered yes, then follow this link to GPS Inventory Solutions and learn more.

While you are there also check out their customer returns program too!

What is OSMI?

http://acronyms.thefreedictionary.com/OSMI

How To Avoid Surplus Inventory

"Why Should the CFO Worry About Inventory?"

This blog posting does a fantastic job of explaining how inventory impacts the corporate balance sheets and your bottom line!
http://www.supplychainmusings.com/2010/05/why-should-cfo-worry-about-inventory.html

Excess Inventory, The Doomsday Scenario

Excess Inventory? See What Talon MC & Liquidation World Can Do For You!

A Grainger video about inventory solutions, maintaining inventory, maintenance, repair and operations and keepstock.

A Grainger video about inventory solutions, maintaining inventory, maintenance, repair and operations and keepstock.

Slow moving inventory is often seen as an easy target for people undertaking an inventory review.

What to do instead of scrapping inventory

When inventory liquidation is a bad idea

You have excess or slow moving inventory and you want to get rid of it. When does this make sense and when does it not make sense?

Some industrial, mechanical, or machine parts should not be discontinued or liquidated even if the sales of these products is slow. Any part that is vital in the functioning of a machine, needs to be available to customers if and when they need them. One part that is broken on a complex machine can make the machine unusable.

These critical parts need to be kept for possible use by customers or distributors since that is part of servicing the customers and machines that are sold. If you think it is costly to keep slow moving critical inventory, please compare that to doing a new manufacturing run for that part.

Besides being expensive and generating MORE slow moving inventory, don't forget time. Many critical machines cannot be down for long periods of time.

A better idea is to use a GPS inventory bank for critical parts... They store the parts for you and you can access them when you need them for a minimal fee. You don't pay for storage of inventory, you only pay if you need a critical part.

See the inventory bank info on this page for more info

Slow moving inventory solutions

This article has an interested statement, though in the end we think we have a better solution for some slow moving inventory.

As a rule of thumb, we figure that the expense of maintaining goods in inventory averages about 2 percent of the cost of those goods each month. If you carry an item in stock on the shelves or in a warehouse for a year, you're down 24 percent. There aren't many businesses that can overcome this kind of a cost handicap even in the best of times. When business is bad, a slow moving inventory can be a killer.

Dispose of Wholesale Surplus Inventory and Slow Moving Inventory

http://www.morebusiness.com/running_your_business/profitability/tip15.brc

The article then talks about junking inventory and selling it at a distress sale. I think that might apply to some goods, but any sort of industrial parts that may be needed in the future by customers should not be sold at a loss or junked, it should be put into an inventory bank.

Inventory Management terms defined

Slow Moving Inventory - inventory that has little or no current usage;
sporadic movement
Excess Inventory - inventory that is in excess of the forecasted demand.
Obsolete Inventory - inventory that has been superseded by newer items.
Non-Moving Inventory - no demand inventory

Inventory Bank - a third party company that purchases excess & slow moving
inventory and makes it available for sale to fulfill future product needs.

Surplus Outlet - a company that purchases excess inventory, often at a
fraction of its cost, and resells it into the open market, often competing
directly with the OEM and its customer.

Excess Inventory according to wikipedia

http://en.wikipedia.org/wiki/Excess_inventory

GPS Inventory Bank for slow moving inventory

Our GPS Inventory Bank purchases excess, obsolete, and slow moving inventory (OSMI) for its Inventory Bank program. These parts are stored in our high-density long term storage facilities where it becomes available for sale to manufacturers and its authorized distribution network.



Using the Inventory Bank provides manufacturers with reduced inventory carrying costs while increasing their available warehouse space for more productive products.



Increased parts availability thru the Inventory Bank enhances Customer Service and provides long term support for your products.



Plus, your brand identity and market integrity is protected by using the Inventory Bank program, unlike surplus outlets.

Option of donating excess inventory

This video shows an alternative way to get rid of excess inventory via donation.

http://www.youtube.com/watch?v=RXhJxBffHs0

Best way to reduce inventory

If you need to reduce slow moving inventory, this is a very smart way to do it.

What to do with UNPROFITABLE INVENTORY?

In today’s economic climate, companies maintain their inventory as lean as possible.  They frequently scrap excess and slower moving parts and components.   However, it is inevitable that there will be a future need for some of these items.

If these materials are sent to the scrap yard, the manufacturer has no opportunity to recover an item for future use.  If they are sold into the surplus market, the manufacturer may find that these same parts will end up competing against them or their customers – compromising their market integrity.  And, there is little or no opportunity to recover an item for future needs.

When there is a future need for one of these scrapped items, you are forced to remanufacture or repurchase it – usually at a higher cost and with long lead times which adversely affects Customer Service.  Plus, you may be faced with minimum order requirements that make you purchase more than you need.  These extra parts end up back into your inventory – and you have just created more excess inventory!

Solutions

Excess and slow moving inventory negatively impacts your cash flows and profits, consumes administrative and physical resources, and continuously decreases in value as it sits idle.  If you need to reduce this inventory investment but want to retain availability for future needs, our GPS Inventory Bank is your best solution. 

 GPS purchases excess, obsolete, and slow moving inventory (OSMI) for its Inventory Bank program.  These parts are stored in its high-density long term storage facilities where it becomes available for sale to manufacturers and its authorized distribution network.

Using the Inventory Bank provides manufacturers with reduced inventory carrying costs while increasing their available warehouse space for more productive products.  Increased parts availability thru the Inventory Bank enhances Customer Service and provides long term support for your products.  Plus, your brand identity and market integrity is protected by using the Inventory Bank program, unlike surplus outlets.

More info

GPS Inventory Solutions, Inc. , Certified Women's Business Enterprise

GPS Inventory Solutions, Inc., also known as GPS, or General Product Support, is a business specializing in, Inventory Bank Solutions and Inventory Management, received national certification as a Women’s Business Enterprise by the Women’s Business Enterprise National Council (WBENC).

Becoming certified, is a meticulous process including an in-depth review of the business and site inspection. The certification process is designed to confirm the business is at least 51% owned, operated and controlled by a woman or women.
By including women-owned businesses among their vendors, corporations, and government agencies demonstrate their commitment to fostering diversity and the continued development of their supplier/vendor diversity programs.
To learn more about GPS Inventory Solutions, Inc. please visit http://www.gpspartsmart.com .

About GPS Inventory Solutions, Inc.

GPS Inventory Solutions, Inc. offers its GPS Inventory Bank program to help manufacturers from various industries reduce their inventory carrying costs while providing long term product support to maintain the high level of customer service required in today’s competitive market. GPS provides 30+ years experience managing excess inventory and maintains facilities in the Dallas, Texas and Knoxville, Tennessee areas.

About WBENC

The Women’s Business Enterprise National Council is the nation’s largest third party certifier of businesses owned and operated by women in the United States. WBENC is a resource for the more than 700 US companies and government agencies that rely on WBENC’s certification as an integral part of their supplier diversity programs.