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Material Handling Information - Extensive Overstock
   
Inventory
Extensive Overstock

Extensive overstock leaves no place to store material, creating a congested warehouse.

Merchandise is pulled from storage buffers for customized emblems on a Just-in-Time basis at O.C. Tanner.
Problem
  • Warehouse is full of the wrong product.
  • Have to offer volume discounts to clear out inventory.
  • No place to store incoming product.
  • Excessive inventory costs.
  • Poor use of storage space.
  • Congested warehouse.
  • Multiple non-value-added handling of inventory.
  • Excessive safety stock due to lack of confidence in internal material handling and control processes.
  • Inability to forecast sales, leading to just-in-case inventory.
  • Unwanted inventory gathers dust or expires.
Solution
  • Replace build-to-stock processes with build-to-order.
  • Stock only what you need to satisfy your customer base (forecaster software).
  • Consolidate part numbers.
  • Use a Warehouse Management Software (WMS) to:
    • Maintain optimum inventory levels.
    • Maintain up-to-date reports on available inventory.
    • Track information on inventory turnover.
    • Process replenishment orders efficiently.
    • Direct workers for efficient putaway of material.
    • Report old products by age.
    • Flush out old inventory.
    • See Warehouse Management System (WMS) Feature Selection Guide.
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