Managing Inventory: Invest in Your Growth

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How much excess inventory currently clutters your valuable floor space? Many organizations pad their supply with extra inventory to absorb the long lead times or missed delivery dates of unreliable vendors. These organizations are attempting to overcome the inefficiencies of their vendors. However, those inefficiencies do not simply disappear: excess inventory creates an inefficiency of space and a restriction of cash flow — both essential resources. Do not allow your vendors’ inefficiencies to become your own. Invest in growth, not in precaution.

The Problem

Some vendors are just unable to consistently hit lead times and meet delivery expectations. Rather than suffering those consequences, you decide to invest in the soft cost of storing components. This provides a failsafe in the event of a vendor’s missed delivery. However, this is an inefficient use of space and cash that ultimately leads to more inefficiency. Inventory levels are not strategically maintained, and space and cash flow are restricted. This affects your organization’s profitability and fluidity. Essentially, money is lost in the storage space.

You should not be absorbing the costs of your vendor’s unreliability. Those resources of space and cash should be freed up for more strategic investments. You should build partnerships that allow you to more effectively manage inventory.

The Solution

Your vendor should be your partner in managing inventory. They should assume the responsibility of purchasing and storing inventory. A strong partner offers you space and cost-saving solutions, rather than forcing you to overextend your resources — resources that could be more effectively invested in the growth of your business.

At Mainstay, we recognize that both partners can benefit from improved efficiencies. Mainstay invests in the necessary resources to meet consistent lead times. In doing so, we relieve our partners from the burden of excess inventory, allowing them to free up space and cash flow. We strive to help our partners efficiently manage inventory so that they can invest their resources in growth.

Mainstay invests in inventory and other resources, so that our partners don’t have to. More importantly, though, we offer cost-saving solutions to free up even more cash:

A partner required a quote of 1,500 pieces, but the material in question yielded 2,000 pieces. This left us considering the cost of the extra 500 pieces. At 2,000 pieces, the price per piece was less, creating efficiencies. Our partner wanted the 2,000-piece price, but only consumed 1,000 pieces per month. Mainstay offered a strategic, cost-saving solution: we created a blanket order for 12,000 pieces for the year. In doing so, we assumed the burden of managing inventory and released 1,000 pieces to our partner every month with next day lead-time. We managed our inventory in order to improve efficiencies in the partnership and benefit all parties financially. 

When was the last time your vendor saved you money? Build a partnership centered on trust and efficiency. Be strategic and intentional about growth.  Mainstay has the capacity to eliminate inefficiencies and employ strategic solutions. In doing so, we enable our partners to improve inventory management. Stop overcompensating for vendor inefficiencies. Leverage a strategic partnership to make your business leaner and invest in growth. Start the conversation with Mainstay today.