Feb 01, 2005Macro-level problem:
Out-of-stocks
Contributing micro-level issues:
• Administrative errors
• Internal theft
• Poor case-picking accuracy
• Poor fulfillment accuracy
• Poor inventory accuracy
• Poor order accuracy
• Product diversion
• Put-away errors
• Slow order fulfillment
Additional benefit areas:
• Reduce chargebacks and invoice deductions
• Reduce cycle counts
• Reduce labor costs
• Reduce obsolete goods inventory
• Reduce spoilage or product
obsolescence
Macro-level problem:
Manufacturing inefficiencies
Contributing micro-level issues:
• Administrative errors
• Poor accuracy of work in process
• Poor raw material and parts visibility
• Poor visibility of parts inventory
• Poor visibility of work in process
• Poor yard management
• Receiving errors
• Supplier fraud
Additional benefit areas:
• Automatic tracking of inbound and outbound material
• Better use of working capital
• Improve regulatory compliance
• Lower inventory carrying costs
• Reduce manufacturing errors/defects
• Reduce stocks of raw material or components
Macro-level problem:
Excess inventory
Contributing micro-level issues:
• Administrative errors
• Cargo transfer errors
• Inability to respond to demand signals
• Internal theft
• Poor dock-to-stock time
• Poor inventory visibility
• Put-away errors
• Receiving errors
Additional benefit areas:
• Reduce cycle counts
• Reduce labor costs
• Reduce paperwork
Macro-level problem:
Excessive obsolete or unsaleable inventory
Contributing micro-level issues:
• Poor accuracy of work in process
• Poor finished goods inventory accuracy
• Poor fulfillment accuracy
• Poor parts inventory accuracy
• Poor parts receiving accuracy
• Poor parts visibility
• Poor visibility of work in process
Additional benefit areas:
• Reduce cycle counts
• Reduce labor costs
• Reduce paperwork
Macro-level problem:
Excessive losses through theft and/or counterfeiting
Contributing micro-level issues:
• Poor cargo transfer controls
• Poor inventory controls
• Poor track-and-trace controls
Additional benefit areas:
• Improve inventory accuracy
• Improve regulatory compliance
• Lower inventory carrying costs
• Reduce cycle counts
• Reduce paperwork
• Reduce product diversion
• Reduce recall costs
• Reduce safety stocks