Reduce Costs 8 Ways

2. Reduce inventory carrying costs by reducing the inventory needed to run your plant.
   • Use supplier-consigned inventory. About 80% of automated tool-dispensing machines have consigned inventory from the supplier. Both the cost and responsibility of inventory are shifted to the supplier.
   • Move to Demand-Based ordering. Case studies show that those who move to Demand-Based ordering over standard min- / max-based purchasing can run their tool cribs and point-of-use dispensing equipment with 20% less inventory. (AutoCrib Software uniquely features Demand-Based ordering.)

3. Cut spend on new tools, by forcing the use of regrinds or reconditioned items.
   • Industrial vending machines can force the use of regrinds and reconditioned items first, before allowing access to new items.

4. Reduce obsolete inventory by increasing visibility of slow and dead inventory.
   • Use supplier-consigned inventory (your supplier is tracking inventory on a daily basis, and can more easily dispose of unused inventory with other customers before it becomes obsolete).
   • Industrial vending machines can dispense the older tools and supplies first.
   • Because AutoCrib software tracks the RATE of use over time for each item, it will not automatically reorder very slow-moving items until they are needed.

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