WASTE OF INVENTORY
After writing some articles in Portuguese some friends overseas asked to express my ideas in English, so let’s start with the most recent article published a week ago.
Since our first articles on this blog, we have been dealing with Lean on Sales application, we were able to discuss about reworks and bugs, as well as excessive process, always based on Lean. Now, we care able to deal with something that might not always be a big issue: the inventory or storage. Both names can be used and are accepted to characterize this issue.
We are sure that, at the first moment after reading the word inventory, people think about the commercial area related to products that have been produced and stored for a possible future sale. However, in this case, we are dealing with this concept related to storage on sales area.
This waste is clearly seen on daily examples in any commercial area and it’s probably not noticed or worked trough. For better exemplification, we can point daily situations that we let go by without noticing.
How many times have we came across with a situation that requires a repair to something that we need fixed straight away?
Then, in most part of the times, we must dislocate to require a price that takes longer then the repairing time. The reason to such situation is that the storage to price is often bigger than the activity performance capability or the designed process flow.
Another example that is important to be discussed is factories that perform a great job on market prospection, bringing an elevated number of potential buyers, but, when these potential clients have their first experience searching for data or prices about some product, they get frustrated.
The complete absence of an aligned process with measured capability and controlled neck leads the potential buyer to a long waiting line or consult of inventory with their request.
There are typical exemplifications of contacts inventory that happen before the contact, these are coverage areas of available areas to a single salesman or the representant that has a limited number of available hours and could never keep in touch with all the potential buyers or make an excellence work to those who already are buyers. This market storage, characterized by market backup, brings substantial damage to the organization growth.
The causes to these examples above are many, however in most cases it’s related to the fact that a process is probably not correctly mapped with all the resources analyzed and performance timing, as well as the inexistence of measurement data.
The good news is that there is a solution and with the correct method of sales valuation mapping it could be detailly measured and quantified and can be solved bringing quick and consistent benefits.
Our consulting agency is specialized in performing a quick mapping with the team, defining an action plan and leaving it on the company’s hands por execution or even support if still necessary.
In the next articles we will keep dealing with sales wasting as focus on the improvement of the commercial area performance.
Fabiano Souza is consultant and parter on Trajetória Consultoria.