Case Study: Managing NetSuite to Reduce Shrinkage
The Problem:
FiveCubits, a major provider of technology, software and services to the bulk materials industry had experienced dramatic growth in recent years. Despite continuous efforts from company team the “loss” of product from the warehouse was increasing at an alarming rate. This loss was due to shipments, inbound and outbound, not being recorded, or when it was recorded the quantity and item were not properly recorded. The company was literally “shrinking” from loss of valuable inventory.
My Solution:
After a top to bottom review of the company’s inventory control processes within their NetSuite system I met with company management and staff to discuss changes to their inventory control process. Based on our findings we attempted to correct the process to lower shrinkage. The shrinkage was lower, but still high and with my extensive experience managing NetSuite and other ERPs I guided the implementation of a new inventory control process featuring a bar code & bin inventory system which improved receiving and fulfillment work flows.
The Results:
The changes I guided resulted in reducing inventory shrinkage by 95%. The FiveCubits’ warehouse could now meet the high velocity turnover needed to really boost the growth of the company.
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