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Holding inventory in squirrel stores can cost your company severely

squirrel

Inventory management is no oxymoron. Large international MROs have acknowledged the financial and organisational impact and value of proper control of inventory and yet, so many of the large organisations have only managed to succeed in the effective control of what is visible and in the direct control of the four walls of the warehouse.

This practice of only controlling the known stock in many instances is already well managed, with very little benefit to be derived from further optimisation. But what about the spares that are not reflected on the balance sheet? Those requested and bought, but never used, and not in the formal control of the warehouse?

By walking around the operation and looking into cabinets and open spaces, you are more likely than not to find parts lying in “informal” locations, not controlled and not reflected on the inventory management systems. Without assuming poor discipline and malicious intent to circumvent the controls and processes of the operation, have you considered “why?” and “what is the impact?”

Download the full article . . . .  Holding inventory in squirrel stores can cost your company severely

For a more detailed discussion on how Deloitte Consulting can assist your organisation in addressing the business challenges identified in this article, feel free to contact Ilse du Toit at idutoit@deloitte.co.za and Clinton Houston at clhouston@deloitte.co.za

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David Graham

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