Coyle Corrugated Containers' proper and effective management of inventory for our customers can reduce costs involved in carrying inventory, storage space within your facilities, acting on opportunities as they arise, and your time in managing on-site inventory.
The realities of your costs in carrying significant cardboard box inventory
Inventory is a significant portion of working capital in most manufacturing companies. The costs of ordering, storing, insuring, financing, and monitoring inventory can also be significant. Reducing your on-hand inventory levels carries a direct increase in the bottom line.
Space & Opportunity Costs
Warehouse space is becoming an increasingly scarce commodity for manufacturers. Overstocked raw materials and Work-in-Progress take much-needed space away from higher-value uses such as finished goods and even production space.
Larger inventories often require a much greater level of management and attention. Internal communication is less frequent and thus less reliable, causing purchasers to have to react to emergency situations as opportunities arise. Rush shipments often carry larger invoice and shipping costs to accommodate such circumstances, leading to worst-case scenarios such as stockouts and late shipments to customers.
5 Ways to Reduce Average Inventory Value
We can run the production schedule for your corrugated products based on estimated forecasts so that we can ship smaller quantities more frequently.
We can identify common uses among inventory items (especially in raw materials and packaging) and use strategic design to reduce the total number of SKUs you need.
We can set up simple yet effective systems for the automatic monitoring and recording of your inventory items. Excess inventories can be trimmed, even with seasonal or volatile demand items.
We can reduce the amount of material required for each finished product, resulting in an overall cost reduction. Inventory value is further diminished accordingly.
Vendor - Managed-Inventory (VMI)
This process is part of our vendor-customer relationship in which we maintain responsibility for all of your inventory functions, in many cases stocking items directly to storage locations or even production points in your facility.
Contact us to learn more about how we can help you with managing your corrugated inventory to reduce your costs and help you to run more efficiently.