Inventory Control: Manufacturing Digital Looks at Getting Inventory Leaner, Meaner, and More Effective

Online, July 19, 2010 (Newswire.com) - (Norwich, UK) - Too much inventory stifles cash flow and consumes money. Too little opens the company to risk. So how do you get the inventory balance right? It's a tough question, but Manufacturing Digital tries to crack it in the article "Inventory Control: Getting Lean, Mean & Effective", which appears in its July issue.

Inventory - whether it's raw materials in the warehouse, parts at the lineside, work in process (WIP), or finished goods - is cash tied up in the business. In excess it can halt business cash flow, occupy valuable space and impede flow around the factory.

"Moreover, as soon as goods are delivered into a company they start to consume resources with storage, heating or chilling, lighting and administration, incurring cost," explained Craig Dunn, lean operations manager at Willerby Holiday Homes. Eventually, idle inventory runs the risk of becoming obsolete, either as it reaches the end of its shelf life or as product design moves on.

Finding the optimum level of inventory is therefore vital. "Too much inventory certainly impacts the health of an organization," said Emma Scott, representation manager and procurement specialist at the Chartered Institute of Purchasing and Supply. "But too little inventory leaves it vulnerable to risk."

Read the full article at http://www.manufacturingdigital.com/news/inventory-reduction/inventory-control-getting-lean-mean-effective.