Help Your Company
When IQR Can Help Your Company the Most
Here are some typical situations calling for an IQR Inventory Analysis.
1. Senior management pressure to reduce inventories.
IQR will show you what the true inventory reduction potential is and exactly where to get it. Rather than across-the-board reduction targets, IQR will help you set realistic objectives by individual planner, product line, commodity, location, etc. IQR will first identify and then prioritize your specific reduction opportunities.
2. New managers in Operations, Materials, Supply Chain or Finance.
IQR will provide a comprehensive analysis of your inventories. New managers need and want an unbiased assessment of good and bad inventories. IQR can help you benchmark current performance and make significant improvements during the honeymoon period—before all the inventory problems become your own.
3. Cash flow problems.
Any good system can help to balance inventory over the longer term, but IQR focuses on your immediate opportunities to defer purchases and free up cash. Typically, our initial inventory analysis identifies savings that will more than pay for the software in the first month or two. Improved cash flow can also help you accomplish other needed projects.
4. Inventories growing at a faster rate than sales.
IQR can help you avoid the build-up of excess inventories and future write-offs. The unique movement matrix tool provides early warning signals for bad inventory.
5. Lots of slow moving or obsolete inventories.
IQR can help you clean house is a systematic way and identify the potential for reducing write-offs through engineering revisions and sales promotions. You can also use the custom report feature to define obsolete inventories according to your own criteria.
6. Poor morale, discipline and/or productivity.
In addition to the skill set of software and training that will make the planners’ job easier, IQR provides the insight and motivation needed for them to take charge and actually reduce inventories. Seeing the impact they can have on inventory levels and company profits is empowering and the results are exciting and gratifying.
7. Preparing for conversion to a new MRP/ERP system.
IQR can help you clean up the data in your current system before cutover. Identifying erroneous or incomplete data is best done in the current system and can lead to improved processes and disciplines. IQR will also provide a continuum of performance measurement that spans the old and new systems.
8. MBO, incentive bonus, and performance evaluation programs.
IQR provides a comprehensive tool for setting objectives, measuring performance and tracking continuous improvement.
9. Inventory valuation for mergers/acquisitions, turnarounds and Chapter 11s.
IQR has been used to assess the true value of manufacturing inventories in such cases based on different operating scenarios and user-defined parameters.