At my first meeting with many companies, they’re often stressed by trying to deliver 3% to 5% per year cost reductions to their customers. They frequently have inventory turns of four or less, which consumes cash and erodes profitability.
Companies really can achieve dramatic improvement with profit numbers in the 20% of sales range and inventory turns over 12. Rick’s Materials Management Manifesto will challenge your thinking and put you on a path to world-class performance. Click here for an expanded description of all eight points.
- You can sell out of an empty wagon
- Don’t waste your buyer on buying
- RFQs increase costs
- Annual cost reductions of 3% to 5% are peanuts
- Unplug your MRP – it’s likely an ineffective buying tool
- Too many suppliers spoil the soup
- Manage products throughout their life cycle
- Consigned inventory can destroy supplier relationships
Supplier partnerships, process discipline and striving to improve flow though Just-In-Time inventory management can provide exponential improvements in profit and cash flow. Use Rick’s Materials Management Manifesto to guide your thinking and achieve world-class performance.
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