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
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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
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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.