GPS Inventory Solutions: A profitable solution for unprofitable inventory

GPS Inventory Bank Programs
To Manage OEM Slow Moving Inventory

If your company stocks inventory, the odds are about 60% of it is slow moving and very costly to maintain.

On the other hand, it also plays a very important role in providing a high level of immediate availability and long term customer service.

So, what do you do?

Hold onto it? Every year that you hold onto slow and non-moving inventory, it costs an average of 25% in carrying costs. And, that is for each year that you hold onto it. It is taking up space in your warehouse, using up resources and working capital. Plus its annual minimal sales will not come close to covering its 25% carrying cost, reducing the profits from your faster moving inventory.

Scrap it? Using your reserves to write off inventory may free up some space and resources – but now you have lost availability to those items. And, you know that once you scrap inventory, you are going to need some of it again!

Surplus it? Same as scrapping except now it may be competing against you and/or your customers!!

Customized Exit Strategies for OEM Slow Moving Inventory

Whether you need to retain ownership of the inventory or want to write off the inventory at the appropriate financial time, there is a GPS Inventory Bank program to meet your needs.

GPS can show you how, when properly managed, this unpredictable demand inventory can actually add to your bottom line. History points out that 5-6% activity will occur annually. Its sales will produce pure profit when the inventory carrying cost is eliminated or managed to its lowest level.

As part of its 3-Step Inventory Management Approach, GPS offers the following programs:

Inventory Bank 3.5 Program - OEM retains ownership of inventory therefore no write off is needed. GPS provides basic inventory management with unlimited in and out transactions for an annual fee of 3.5% of the total inventory value managed. LINK TO A NEW PAGE

Inventory Bank Standard Program - GPS assumes ownership and management of inventory. OEM eliminates annual carrying costs but retains immediate availability. OEM only charged standard cost per item consumed – No annual storage costs. LINK TO A NEW PAGE

Inventory Bank Shared Profits Program - same as Standard program except GPS sells directly to your authorized distribution network or other 3rd parties. OEM receives promo rebate based upon a % of selling price.

The OEM may use one or any combination of all programs. Inventory can be easily transferred from the 3.5 program to the Standard program.

Once the GPS Customized Exit Strategy is in place and OEMs begin depositing slow moving inventory into the Inventory Bank programs, they immediately start saving millions of dollars in inventory carrying and administration costs, while still retaining availability for long term product support.

For More Information:

Contact GPS for a FREE consultation and see how easy it is to meet all of your corporate demands through managing your slow moving inventory.