Tips for Managing Inventory and Reducing Costs When Metal Stamping Sales are High

While increasing sales numbers is a priority for all manufacturers, actually achieving the high sales numbers you’re after can create some unintended problems when it comes to metal stamping cost and inventory management. The greater your sales numbers are, the more of a challenge it will be to manage your supply chain. Follow these tips to make sure you don’t run out of metal stamping supplies right when you need them the most.

1. Release your raw material orders in advance

  • If your metal stamping supplier understands your needs in advance, they can make sure that your needs are met when the time comes. On the other hand, certain materials can take months to procure, meaning that your facility could end up grinding to a halt if you don’t allow the appropriate amount of lead time.

2. Order in bulk, so that you can reduce shipment frequency

  • One of the consequences of having to fulfill more orders than expected is having to use more raw material than expected. If you have to take multiple shipments just to make sure you have enough resources to meet demand, it’s time you consider increasing the size of your original order. Taking one large shipment will almost always cost less than taking two smaller shipments.

3. Plan ahead to avoid expedited shipments

  • Having to rely on rush freight to account for an unexpected spike in demand is not a cost-effective way of doing business. The higher costs of the expedited shipments will quickly eat into the extra profits you make as a result of completing more sales. Planning ahead is the only way to effectively avoid paying for rush shipping.

4. Communicate your sales forecasts throughout the supply chain

  • Finally, it’s important that everyone involved with your supply chain, including both internal and external shareholders, be up to date with your latest sales forecasts. This will allow them to conduct long-term and short-term plans so that they can always be prepared to meet your changing needs.

Managing inventories and cost is one of the foremost consequences of success; however, by planning ahead and communicating with your metal stamping supplier, there’s no reason you can’t continue operating efficiently and effectively in spite of your high sales numbers.