It may seem counterintuitive at first glance, but more manufacturers are realizing that reduced levels of inventory can bring increased cash flow and revenue into their business.
Keeping shelves stocked to meet customer demand is of upmost importance. By working with Breiner Non-Metallics, production managers can keep just the right amount of inventory on hand without wasting resources on more than is necessary to keep up with current production.
Inventory costs money, takes up valuable space, adds risk due to potential obsolescence and brings on additional expenses of moving it around, keeping track of it and paying taxes on it. By utilizing a “just in time” (JIT) manufacturing methodology, companies can improve their cash flow and revenue streams by reducing inventory costs and freeing up square footage for more productive uses.
Overstocking on inventory of non-metallic gaskets and seals or other custom-cut parts can be common for manufacturers stuck in the past and used to working with suppliers who mandate minimum-order levels of their products.
By accepting minimum-order mandates and not seeking out a supplier to meet their small-lot, individual needs, clients end up overpaying for their initial (too large) order and continue to overpay as the inventory goes on to take up valuable space and diverts resources from other productive endeavors.
Whether it comes from a change in inventory philosophy, space needs or just a realization that fewer parts on the shelves will free up some much-needed cash, embracing JIT inventory management can reduce overhead while keeping production on schedule and running smoothly.
Lowering your inventory levels shortens the time it takes between paying for that inventory and turning it into cash in your revenue stream. Smaller batches are easier to manage, take up less space and leave you with less unused product on hand whenever changes are made and certain parts become outdated, obsolete or no longer required.
Breiner Non-Metallics takes a hands-on, carefully curated approach to our production system and is able to rapidly respond to JIT orders with minimal lead times — often with next- or same-day delivery. While we can certainly handle orders of thousands of custom parts, we’re just as happy making only the small handful you need at a moment’s notice.
On a regular basis, we’re meeting with more clients looking to cut costs through reduced inventory without harming their production quotas and risking a costly line-down scenario. If reducing your inventory of non-metallic seals, gaskets and other custom-cut parts is a priority, we look forward to giving you only exactly what you need, just when you need it, to improve your bottom line.