Plan For Every Part
Do you have a Plan for Every Part? If not, you really should!
Plan for Every Part (PFEP) is an inventory management methodology which does exactly what it says on the tin – it ensures you have a plan for every part! We’ve all heard stories of production lines stopping due to stocking out of a nut or a label, but a robust implementation of PFEP ensures that by employing the correct strategy for every part you can maintain appropriate stock levels, reduce the risk of stock outs and avoid overstocking and SLOBs.
Give me six hours to chop down a tree and I will spend the first four sharpening the axe. (Abraham Lincoln)
How Does PFEP work?
PFEP looks at sales/usage values and pick frequencies to classify every part and determine the most appropriate replenishment strategy. Parts are classified as MTS or MTO and safety stock levels, where required, are calculated, whilst different replenishment methods, such as Re-Order Point Planning, Kanban, Consignment or VMI are recommended where appropriate.
Implementing PFEP will have wide ranging benefits for your business and is a key enabler for inventory reduction and optimisation initiatives.
Get in Touch
Libero are experts in reducing and optimising inventory in organisations of all sizes. If you would like support in reducing and optimising your inventory, to reduce holding costs and improve your cash position, GET IN TOUCH with us today!
