Ray Prince

Reducing paper inventory

Question:  We keep a significant inventory of paper and I have been concerned recently about the cost of maintaining this inventory. What are others doing?

Answer:  No one solution is correct for everyone due to the type of work and geographical area but here are a few that I have seen:

Printer A is located four miles from a major paper distributor and arranged for the distributor to deliver paper five times per day according to need in the plant. The printer basically eliminated his paper inventory and gained significant square feet for manufacturing. The advantage to the distributor was that the printer purchased all paper from them.

Plant B is a small plant with forty employees and tries not to stock any paper. They have an arrangement with their paper distributor to take back unopened cartons. Likewise their distributor is close to the plant.

Plant C is a large web printer and purchases directly from the mill. The amount of stock on the floor is carefully scheduled so that no more than 30 days stock is in the plant.

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Posted by Ray Prince on October 9, 2008 | Comments (1)