Inventory Management Programs
Carrying excess material is in direct conflict with the principles of lean manufacturing.
Material with no demand must be addressed in order to maintain profitability of a program or product. Since our inception, CTG has developed sophisticated solutions in this area.
Our highly skilled team of analysts will work to pinpoint key material in your excess inventory to launch the appropriate re-marketing campaign.
Our goal is to yield the highest ROI for your material.
We provide a complete solution which includes coordination of removal, logistics, environmental compliance, risk mitigation, and data protection.
Inventory Management Programs are directly in line with our expertise in Obsolescence Parts Management.
These programs have consistently grown in profitability both to CTG and our customers.
Excess inventory or material with no demand is a financial drain to our customers.
Carrying material with no demand in the system creates serious financial problems and consequences inside the manufacturing sector.
Here are just a few categories where a negative effect is created because of excess inventory:
- Inventory Turns
- Property Management Resources
- Carrying Costs
- Warehouse Storage Space and Cost
- Handling Costs
- Insurance and Taxes
- Shrinkage and Obsolescence
- Program Funding
In an industrial or commercial environment where designs change more rapidly, your need for space can be satisfied by continuing to move the material with no demand out of the system, saving significant amounts in property management costs. When all efforts have been exhausted and material is deemed obsolete, CTG will provide the solutions and become an appendage of your manufacturing process at the back end. Our Inventory Management Programs have helped our customers mitigate all risk, maximize return and have given them access to their previously needed material if a future demand arises.
It also significantly helps the Defense Industry by keeping the flow of DMSMS (Diminishing Manufacturing Sources and Material Shortages) material moving into the marketplace, limiting the need to redesign or cancel Mission Critical Legacy Platforms so necessary for our country’s National Defense.
- Lot purchases
- Line item purchases
- Virtual Consignment
THESE TYPES OF PROGRAMS
WILL ALLOW YOU TO
- Maximize Return on Investment (ROI) for your excess and obsolete inventory
- Free up personnel to concentrate on your company’s core competencies
- Eliminate carrying costs associated with surplus material
- Obtain cash for operating funds
- Free-up warehouse space for production material
BY PARTNERING WITH CTG,
YOU CAN EXPECT
- Saleability analysis on your entire list of excess
- Proactive marketing and sales of your material
- Reverse Logistics
- Immediate recall of material at our expense
- Single Point of Contact
- Consistent, Real-time reporting
- Environmental, ITAR, EAR, and GIDEP compliance
RETAINED CONSIGNMENT FOR GOVERNMENT AGENCIES
Funding shortfalls have put pressure on the Services to look for efficiencies to maintain a ready force. Excess inventory is costly to hold. Government agencies should implement initiatives to reduce material cost by:
- Disposing of excess stock
- Shrinking contingency stock
- Improving forecasting and planning
- Reducing infrastructure
CTG recommends that government agencies adopt an inventory reduction concept based on Retained Consignment. The attributes of this plan expose inventory to industry, while keeping your agency in control of excess inventory, expands the window that inventory would be available to industry and expands the customer base.
- Government Agencies physically maintain the inventory but allows industry visibility to the inventory. Your agency could choose to protect a certain level of inventory,
- Industry works to source excess inventory to an expanded customer base,
- No changes occur to the formal disposal process.
- Reduces/eliminates redundant storage
- Eliminates extra material movement
- Reduces Agency & Tax Payer cost
- Cuts Execution Challenges