Remove Excess Inventory
If your facility is squeezed for space,
don’t overlook the obvious.
There are many reasons for keeping excess inventory
(customer satisfaction, having complete product lines, lead time uncertainty, etc.),
but these reasons should be compared to the cost storing these items.
Housing excess or obsolete inventory is a poor utilization of your space and can be a costly mistake.
The first step to removing excess inventory is to calculate the economic amount of inventory you should have on-hand.
Then, compare this amount to the actual inventory on-hand.
The difference is the amount of potential excess inventory that can be removed.
By properly managing your inventory,
you can remove excess items and reallocate that space for fast-moving or high-volume products.