Reduce Inventories—Increase Your Job Shop’s Bottom Line by 30% or More
For many years, if you were a job shop or contract manufacturing owner you didn’t have to worry about inventory. You bought raw material directly to the job about when you needed it and whatever inventory you did have was usually comprised of raw material drop or remnants or a few finished parts from a previous job overrun.
However, customer demands upon job shops are changing. Likely, many of you are feeling your customers pressuring you to produce smaller lot sizes and shortening their delivery demands as they wish to outsource their planning and ultimately the cost of carrying inventory to their suppliers. In addition, material availability from suppliers can at times be sporadic and constant price fluctuations (usually in the form of increases) are cutting into your margins.