Increased Operational Costs

  • You have high carrying costs.
  • Inventory is inaccurate.
  • You order items already in stock.
  • Uncertain how to determine what to purchase.
  • You perform a physical cycle account often.
  • Unknown delta between actual inventory.
  • You have too many of the wrong items in stock.
  • You cannot determine what to order.
  • Uncertain average turn.
  • Uncertain how much it cost to carry items that don’t move.
  • Uncertain as to which warehouse to have items shipped to.
  • You find you often transfer between warehouses.
  • Unknown cost.
  • You carry an over abundance of kits in inventory.
  • You assemble kits and commit to demand.
  • You cannot explode kit components on purchase and sales orders.
  • It is manual.
  • Unknown Time/Cost.
  • You have an issue with shrinkage.
  • You cannot track inventory form receipt to shipment.
  • You cannot track item movement performance.
  • When you take ownership of items offshore, it takes long before you have visibility within your system.
  • Uncertain as how to audit transaction history.
  • There is an increase in shipping charges.
  • You are unaware of inventory in all warehouses so you are forced to ship from alternative stores.
  • You have no visibility of products being transferred.
  • You need to expedite goods because you do not know the receipt date.
  • It costs you.
  • The back orders need to be expedited.
  • This costs extra.
  • Uncertain if they can offer substitutes.
  • You have an increasing bad debt due to delinquent customers.
  • Order desks take orders which put customers over their credit limit.
  • Uncertain whether they take orders for customers who are delinquent on payment.
  • Uncertain what happens to those orders.
  • Uncertain how often you can collect.
  • You maintain multiple systems.
  • Order processing, distribution and shipping are not integrated.
  • Uncertain how orders are created.
  • Uncertain pick tickets.
  • Uncertain bin labels.
  • Uncertain documents and packing lists.
  • It takes long.
  • It costs.

About the Author: AJ Amjad Khanmohamed

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