We hear it time and time again; consumable inventory management is one of the easiest areas to make a significant impact on your overall operations budget. If you don’t have a strong tracking system, parts inevitably get lost, moved, broken, repurposed, walk away, etc…something often politely referred to as inventory shrinkage. A small amount of inventory shrinkage can be expected to a certain extent. But without a good tracking system, it can lead to serious cost sinks, and have detrimental consequences like outsourcing.
St. Lucie County School District (FL, 35,000 students), is a district that considered outsourcing their inventory warehouse operation to contractors a few years ago. However, since they implemented InventoryDirect they were able to pull reports that showed they were saving the district upwards of $300K in potential expenses last year. They continue to improve their processes, increased request to delivery efficiency and now have a 99.999% accuracy rating!
When it comes to accurately tracking inventory costs and receipts colleges, universities and school districts across the nation been able to reduce dead inventory and shrinkage by tracking inventory movement -- saving $2-4 per student/year. Improved efficiencies for staff by using an automatic routing feature can save as much as $7-$10/student/year.