In this era economic turbulence, it is important for the business to make every penny and every minute count, as time is money.
Despite the proliferation of public awareness campaign and recycle waste bin provided from the supplier, recycling programs are Malaysia seem not to be that effective at all.
Indeed, inventory waste can be a real bummer. However, while reducing cost through more efficient, faster in transportation, yet many companies are failing to tap one key area full of opportunities to improve processes and reduce wastage.
But the truth is despite business size, every business can benefit from a regular supply chain review.
Inventory reduction is just another way to tackle inventory waste. Below are just more than any lean manufacturing process and supply chain optimization program should consider.
1. Product Design
Whether it is in the aesthetic or the performance specifications of finished products or even each of its component parts, the design process should always include an assessment.
The assessment served the purpose to determine the minimum of the least expensive raw material is being used by those supply chain such as in safety equipment like air refresher, in order to meet up with the specifications.
Of course, least expensive must be assessed considering all costs, including the materials wastage due to using inferior quality products.
Another option is to review each component like soap dispenser from Malaysia is needed which to determine whether it can be made or sourced for less cost.
2. Quality Control
It is true that the finished quality of inventory stock could affect the amount of waste produced.
While you may found less costly raw materials or have leaner manufacturing processes, is the sacrifice worth more production quality issues, defects, customer service calls and product returns?
Even if being rejected by Quality Assurance (QA) or customer return can be recycled, there is still a relatively high cost of doing so.
3. Production Processes
In addition, each process that materials going through at each link in the chain must be examined by focusing on the inventory waste reduction aspect.
If process waste materials like rubber hum in Malaysia, it should be reviewed to reduce or even eliminate the waste.
4. Product Packaging
Similarly, with the concept of using low-cost materials, there is a point of diminishing returns when you reduce packaging.
However, when you add up the costs of purchasing, handling and shipping excess packaging, the savings you may find by eliminating the excess can be more than worthwhile.
5. Over-processing and handling
Any process of your products go through that does not change its value, either through increased functionality, better appearance or speed to market can result in inventory waste, even if that is just from having the inventory in your hands for longer than needed.
In short, there is a hundred and one way that you can experience inventory waste throughout the supply chain.
One of the ideal overall as to reduce the waste is to increase your inventory visibility as much as possible.
This also includes a through up-to-date inventory management systems, at every step of the process.
Besides, to learn more about reducing your inventory waste like PVC coil mat or floor mat suppliers and optimizing your entire supply chain, you may check out online for warehousing service and figure out the best solution for you.Read More →