Hi, and welcome back. In this episode of our supply inefficiency series, we want to talk about the costs associated with errors.
When things don’t go as planned, course-correcting can be an expensive and painful process.
Perhaps the most obvious errors involve the products themselves, whether through obsolescence, order mistakes, quality issues or stock-outs. But that’s not all you have to worry about.
Say you run out of inventory of even a single component. The subsequent downtime would eat up time and money until the replenishment arrives. Then, if you have to expedite production to stay on schedule, you risk making more mistakes and turning out lower-quality product due to an increased risk of human error.
Thankfully, you can reduce these threats and save money by improving inventory management and making the production process more reliable and efficient.
Come back to Falcon Fastening soon to find out how establishing a vendor managed inventory solution may be able to help improve efficiency and save you money.
Thanks for watching!