Deadstock & Project Ordering Best Practices
Inventory Management directly impacts our financial performance, customer satisfaction, and operational efficiencies. By effectively managing inventory levels, we can optimize costs, improve our cash flow, and be better prepared to meet customer demands. We all know that it is critical to have the “right thing” available for our customers at the “right time”, but we also need to consider the impact to the bottom line when we are cutting purchase orders. Per PowerBI, here is where our Stock and WIP (Work In Progress) inventory levels currently sit as a company:
• Over 45% of that is 120+ days • As of July 2023, the Inventory Reserve is at $5.7 Million
• WIP is currently valued at $54 Million • Almost 25% of that is 120+ days • Stock is currently valued at $25.1 Million
You may be asking; how can I have an impact on these numbers? If you buy stock for your branch, take time to evaluate your purchases. Are you reordering the item because “we order two cases of this closer every month”, or are you basing your purchase on recent usage and upcoming sales? If you are purchasing material for a project and are buying from a wholesaler like SecLock or Top Notch, consider looking at other branches’ deadstock instead. Here is a recent example of how intercompany sourcing could have benefited two branches. For an LCN 4040XP HWPA 689/AL, Branch A has had 7 of these closers on the shelf for several years. Branch B needed these closers faster than the factory could ship them and bought 5 from a
Wholesaler. Branch A missed an opportunity to unload deadstock, and Branch B passed up the opportunity to save more than 50% on their material cost! If we champion smart buying habits with every purchase, we better SERVE our branches and our customers. The Dead Stock Listing on OpenDoor, and the Inventory: Available Stock report under the PowerBI Working Capital app are the easiest ways to browse the stock other branches may have available. For help locating material, email us at operations@cookandboardman.com.
Stephanie Colby Corporate Operations Manager
28
Made with FlippingBook - Share PDF online