Free cash by safely reducing stock: Stock Quick Scan

Use the following quick scan to find out what’s going on in the warehouse. What is the stock situation and eliminate the losses you’ll discover!

Insights from the Stock Quick Scan:

  1. Find out what part of the stock is redundant
  2. Free up capital by reducing redundant stock
  3. Reduce used space and handling without touching delivery
  4. Find golden rules to determine current need for stock

What is the Customer Demand?

  • How many SKU do we store?
  • How many SKU make 80% of the stored volume?
  • What is the
    • Re-Ordering frequency per SKU?
    • Customers demand for delivery time?
    • Customers quantity demand?
    • Usage of the demanded product by the customers per day?

Do we have ‘Out of Stock’ situations?

  • How many Out of Stocks do we have?
  • At which SKU?
  • Is this Random – clustered – Seasonal?
  • What is the out of stock Value (material)
  • What are its
    • direct costs for an out of stock (administration, extra transport)
    • indirect costs (lost sales, extra cost of emergency and crash scenario’s, destruction/landfill)

What is our Manufacturing Capability

  • What is the Design capacity of our equipment?
  • How much is our actual capacity?
  • What are the Changover-times?
  • How many FTE do we have on
    • equipment?
    • planning?
    • handling?

Raw materials

  • How many different raw-materials
    • do we store
    • do we actually use?
    • make 80% of used volume?
  • What is the Delivery time of those materials?
  • Are there large fluctuations in demand i.e. due to seasons?
  • How many suppliers?
  • Which suppliers deliver 80% of volume?
  • How many shipments are received per supplier per day/week?
  • How long from receiving until stored and booked?
  • Is there a return flow from the factory to supplier of store?
  • What is the raw material stock value in Money and Time?

Special conditions

  • How many articles require special handling/storage conditions (temperature controlled, etc)

Supplying from store

  • Who orders raw material from store?
  • How is this done?
  • How many deliveries from store to the shopfloor a day?
  • To how many locations?
  • How long does it take from ordering to supplying to shopfloor?

Handling administration

  • How are store data treated?
  • What is the signal to reorder?
  • How is being ordered? By whom?
  • How long does the processing of óne order take? (In- and out?)
  • How long between ordering and payment of invoice?

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