Excess and obsolete inventory are the main reasons behind monetary losses in any business. But you could put a bar on them by considering LEAN Six Sigma training. With this course training, you get to learn the ropes of profit-making by reducing waste in the business processes. Utilizing your best knowledge of LEAN Six Sigma methods, you can easily eliminate any problem that’s coming in your way to managing inventory.Let’s find out how the strategies you learn from LEAN Six Sigma help you in reducing excess and obsolete inventory.
But before that let’s take a look at the most common reasons responsible for producing excess and obsolete inventory in an organization.
Factors That Give Rise to Excess And Obsolete Inventory Issues
Facing excess and obsolete inventory in your organization? To whom should you blame? Well, quite often the reasons for these issues are inaccurate forecasting methods, poor quality manufacturing and extended lead times. Scheduling problems, rework and late deliveries also give rise to troubles with the inventory management.
Following poor practices in demand management also leads to an unnecessary stock of products in the inventory that triggers the expenses. The inaccurate historical demand data results in miscalculation of sales that never reaches close to the real sales figures. This, in turn, results in excess and obsolete inventory. However, things could be improved if you opt-in to LEAN Six Sigma based business model.
Identifying And Tackling the Issues With LEAN Six Sigma
If your managers are put under LEAN Six Sigma training, you will be able to control over excess inventory. They will be more enlightened with the knowledge that helps them take hold of obsolete inventory that you are struggling with. A LEAN Six Sigma methodology such as DMAIC helps to create an inventory model that has no room for waste.
Using LEAN tools, you would be able to run all the departments of your company in sync. Managing the supply chain, you will be able to effectively manage the lead time, thwarting problems of obsolete and excess inventory from your company’s business process. LEAN Six Sigma lets your logistic and supply chain work in sync with your production to produce goods that could be delivered straight to the customer without the need for storage. It weeds out the unnecessary spending on the inventory storage and gives you a reason to smile by churning out more profits.
The Final Takeaway
There is a permanent solution that effectively deals with excess and obsolete inventory. It is LEAN Six Sigma training that works to manage your inventory like a pro so that you don’t deal with the waste. If building your organization into a successful venture is high on your notes, then getting your employees certified for LEAN Six Sigma is the right initiative that you won’t regret. Using its methodologies, you can transform the way you manage inventories to earn the maximum profits. Train your employees to earn LEAN Six Sigma and pave the way to experience growth in your organization.
Reach us to avail effective LEAN Six Sigma training for your employees to prepare them better to clear the exam. We are SKIL, the best institute for LEAN Six Sigma with a proven record of excellence. Reach us if you want to train and transform your workforce into future leaders. Let’s talk!
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