Home  Business Benefits
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Business Benefits |
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 Keeping the customer satisfied
We all know it is far better and more cost effective to retain an existing customer than to find a new one. To lose a good customer can be extremely disruptive to the business. Whilst you are spending time and money finding new business there is a hole in the order book and lose of revenue. The bulk of the costs of running the business still remain. Keeping the customer satisfied means maintaining quality, raising standards of service and delivery performance to match ever increasing demands.
Customer Service
Customer service is paramount to this - the whole order should be delivered in full and on time. Shortages, leading to partial deliveries, will annoy a customer and will add costs to distribution. The usual solution to this is to hold plenty of stock in the forlorn hope that it will be enough to ensure complete and on time delivery. But we all know that, while this can avoid some shortages, the problem has not gone away and the stock holding has gone through the roof.
The problem
There is apparently no easy solution. Enterprise Resource Planning (ERP) systems don't help, because they don't address these particular problems. To attempt to reinforce ERP laid down procedures is futile and won't work. Eventually, most companies give up and the holding of excessive stock becomes acceptable. 'If you want better customer service, you need more stock' - has become the established view. This need not be the case, view inventory optimisation
The solution - a 'balanced inventory'
The cost of carrying inventory is estimated at 30% a year. A typical company will be holding around 25% obsolete inventory, unless it has been written  down. Of the remainder, we have not come across a company with less than a further 25% excessive stock - it can be as high as 70%. Of course, there will be current stock deficiencies, which will need addressing and will push inventory up in the short term. But in the medium term, demand upon warehouse space will be halved. A balanced stock or optimised inventory will have been achieved without any detriment, and often a significant improvement, to customer service. The Micron approach is the solution..
The benefits to your business:
- Total control of the inventory
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At least 25% reduction in inventory
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Improved customer service
- Improved 'bottom line'
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No adverse cashflow
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Nothing to lose, everything to gain
Regain control of your inventory;
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and we will arrange a FREE Inventory "Healthcheck"
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Forecasting & Inventory Management
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