Multi-site UK food manufacturer

Challenge

A large part of the client's £4.3m stock holding was 'aged stock' and needed to be categorised to ascertain which items should be retained and which were obsolete.

Secure a buyer for the obsolete stock.

Objectives

  • IESA sought to identify items that had no stock movements in a client-agreed time period and were therefore potentially obsolete.
  • These items would then be moved to a designated location within the stores to aid the efficiency of the disposal.

Solution

IESA analysed all of the items held in stock and categorised them by age and usage over a 10-year period.

All items identified as aged six years and above were 'red tagged' and catalogued in a designated location.

5.7% of the stock was found to be 'aged'. This comprised 65,00 items with a value of £750,000.

The client's engineering team then evaluated the 'red-tagged' items and decided whether they should be kept or sold.

Benefits

  • The stock holding value was reduced by 4.2% by selling obsolete items to an IESA identified buyer.
  • This freed up sufficient space in the client stores to allow a more efficient rearrangement of the stock.