Cash Flow

  • You have too much inventory.
  • It is both, too much finished goods inventory and raw materials.
  • There are no inventory turns.
  • Do not know what they should be.
  • Do not know the average on hand inventory value.
  • Do not know what it should be.
  • Uncertain what level of reduction would be meaningful to you.
  • You have a lot of obsolete inventory.
  • Do not know how to notify purchasing on which items will no longer be needed.
  • Cannot easily identify every BOM or process that uses a specific item.
  • You are concerned about decreasing margins.
  • Unsure what kind of trends you are seen.
  • You have no goals for sales (i.e. 10% increase next year)You have obstacles to increasing sales.
  • Inventory levels have an impact on this.
  • There is problems with having the right inventory.
  • You feel you have to carry excess inventory just to prevent lost sales.
  • No known percentage of excess inventory.
  • Cannot estimate dollar volume of lost sales that happen because you can’t deliver the products the customer wants when they want them.

About the Author: AJ Amjad Khanmohamed

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